Telecom networks on the ground have coverage limits. Satellite networks fill these gaps, delivering connectivity to ground stations beyond terrestrial network reach.
The 2023 Telecommunications Act introduces a framework for the administrative assignment of satellite spectrum, concluding an intense period of discussions concerning the allocation method for India. This policy shift paves the way for companies to launch their satellite communication endeavors. Here’s a brief explanation:
What is satellite communication about?
Terrestrial networks, such as our cell phone and internet systems, rely on land-based infrastructure which can’t reach everywhere. Satellite networks bridge this gap by transmitting signals from space to ground stations in remote areas. Key players like Jio Satellite Communications, Eutelsat OneWeb, alongside ventures like Elon Musk’s Starlink and Jeff Bezos’ Project Kuiper, are eager to tap into this market. The allocation or auction of satellite spectrum was hotly contested, with the recent legislation favoring an administrative approach.
What sets satellite spectrum apart?
Unlike terrestrial spectrum that’s widely used by mobile networks servicing billions, satellite spectrum is targeted, tailored for specific beams, and caters to limited users, often in isolated localities. This led to the conclusion that satellite spectrum might not reach full capacity, rendering sharing a viable option. An auctioned spectrum could have concentrated power to the spectrum owner, potentially limiting accessibility and creating a monopolistic environment.
Why is the auction versus allocation debate significant for telcos?
Auctioning spectrum often means that the highest bidder gains exclusive rights. This competitive scenario may marginalize some players. By contrast, administrative allocation — the chosen method — requires operators to pay a fee, allowing for a shared spectrum used by all satellite service providers. This eliminates the possibility of a single private firm monopolizing spectrum access.
Is There a Model for Satellite Spectrum Allocation Worldwide?
Countries around the globe typically set aside satellite spectrum, prompting the satellite industry to adopt a spectrum sharing business model. In the United States, companies gain access to satellite capacity through spectrum allocation, contingent upon compliance with legal regulations. Elon Musk has publicly criticized the idea of auctioning satellite spectrum, a view the Central Government in India shares, citing a lack of global precedent for such auctions, even within the EU. Indian private space ventures also support administrative spectrum allocation, voicing their concern that auctions could result in uncompetitive pricing.
When Might India See Satellite Communication Services Launch?
Satellite communication services, also known as satcom services, could technically launch in India following the Telecom Regulatory Authority of India (TRAI)’s guidelines on the pricing mechanism and allocation model. Entities looking to provide these services must also secure approval from the Ministry of Communications. Reliance Jio has taken early initiative, revealing JioSpaceFiber, and Bharti Airtel has committed to offering OneWeb India’s satellite services. With license applications submitted, SpaceX’s Starlink, Amazon’s Project Kuiper, Tata’s Nelco, and Telesat of Canada are all eager contenders in the burgeoning market.
