Spectrum Auction Essential for Indian Telecom Firms to Compete with Foreign Satellite Giants Like Starlink and Kuiper

Reliance Jio has expressed concerns about the potential dominance of foreign satellite companies in India's Satcom sector. In a letter to the Telecom Regulatory Authority of India (Trai), Jio highlighted the risk of Indian companies being blocked from entering the Satcom market if spectrum is not auctioned. Jio argued that auctioning spectrum would allow local firms to compete directly with international players.

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Jio pointed out that Starlink, owned by Elon Musk, and Amazon's Kuiper have a combined Satcom bandwidth exceeding the capacity built by India's top three telecom operators over the years. According to Jio, these foreign entities have already blocked entry through the International Telecommunication Union's priority list, making it crucial for Indian companies to have clear spectrum assignment policies.

Spectrum Allocation Concerns

The Telecommunications Act 2023 suggests assigning spectrum to Satcom players without auction, using an administrative approach. This is because satellite frequencies are considered shared spectrum, making it technically challenging to allocate them exclusively to one entity. However, Jio argued that mobile satellite service (MSS) spectrum is assigned exclusively, contradicting the shared mode argument.

During a Trai open house discussion on November 8, stakeholders explained that MSS spectrum is assigned on an exclusive basis. Jio stated that the argument for shared mode assignment, which supports administrative allocation, does not hold true for MSS. The company also debunked claims that Satcom services would only complement telecom services in areas lacking network coverage.

Competition with Terrestrial Services

Jio noted that major satellite providers like Starlink and Kuiper have acknowledged their services will compete with terrestrial communication services. These providers aim to offer comparable or superior communication quality in both rural and urban areas. Jio emphasized that these satellite services would directly compete with terrestrial operators.

According to Jio's calculations, Starlink and Kuiper possess a bandwidth capacity of 29,091 million gigabytes (GB), surpassing the combined capacity of 23,012 million GB built by Jio and its competitors Airtel and Vodafone Idea. Jio urged Trai to critically assess the capacities generated by mega non-geostationary orbit (NGSO) constellations like Starlink and Kuiper.

Advocating for Auction-Based Spectrum Assignment

Jio recommended that Trai apply the same principles for spectrum assignment as those used for terrestrial operators. This approach would promote healthy competition, support innovation, and ensure equal opportunities based on service quality rather than regulatory advantages. Jio dismissed any notion that terrestrial operators fear competition from Satcom players.

The telecom giant asserted that terrestrial operators welcome competition and are not pushing for auctions to block Satcom players. Instead, Jio believes that auctioning spectrum for both MSS and fixed satellite services will foster transparency and equal opportunities among various operators.

Jio concluded by stating that entities entering the telecommunications sector via satellite seem hesitant about competing on equal terms. The company reiterated its stance that auctions should be the preferred method for assigning spectrum to Satcom services.