As the Indian government nears a decision on granting satcom licenses and spectrum allocation to Elon Musk’s Starlink, Reliance Jio and Bharti Airtel have urged policymakers to ensure “fair competition” in the satellite communications sector. The telecom giants have petitioned the government to enforce comparable spectrum pricing for Starlink to prevent market distortions.
In their representation, Jio and Airtel accused the Telecom Regulatory Authority of India (TRAI) of overlooking the need for a level playing field between terrestrial and satellite-based spectrum allocations. “Comparable spectrum pricing to terrestrial services should be mandated for competing satellite services in urban, semi-urban, and rural areas,” the telcos stated.
They emphasized the “same service, same rules” principle, arguing that satellite operators providing broadband services should adhere to the same spectrum pricing, regulatory levies, and fees as terrestrial telecom operators.
The Spectrum Pricing Debate: Satcom vs. Terrestrial Networks
Under India’s new telecom law (passed in December 2023), satcom players will receive spectrum through administrative allotment for a fee, unlike terrestrial telecom operators who secure spectrum through auctions. However, the pricing details are still being finalized by TRAI.
The telcos argued that LEO (low-earth orbit) satellite constellations like Starlink have the potential to compete directly with terrestrial broadband services, especially in urban and semi-urban areas. Given their broadband speeds and capacity comparable to fiber and mobile networks, they could distort competition by creating an oversupply of broadband capacity, affecting telcos’ revenues and market dynamics.
However, the telecom operators acknowledged that nominal spectrum pricing should apply for non-competing satellite use cases, such as
✅ Government functions
✅ Disaster recovery
✅ Cellular backhaul
✅ Sectors like defense, maritime, and aviation
Govt Stance: No Auctions for Satellite Spectrum
Despite repeated demands from Jio and Airtel, the Indian government remains firm on administrative allocation of satellite spectrum. Telecom Minister Jyotiraditya Scindia has defended this decision, citing technological constraints.
“Terrestrial spectrum can be allocated exclusively, but satellite spectrum is shared among multiple entities. You can’t auction something that’s shared,” Scindia explained.
Meanwhile, Starlink’s satcom license application is still pending, with the company awaiting security clearances from the Department of Telecommunications (DoT) and the Ministry of Home Affairs. Starlink representatives continue to engage with the government as the approval process moves into its final stage.
