SpaceX, Jio spar yet again over satellite spectrum allocation

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Last Updated17/10/2024

The issue of satellite spectrum allocation resurfaced over Monday and Tuesday, as reports emerged that Reliance Jio had written to the Telecom Regulatory Authority of India (TRAI), urging that airwaves for satellite Internet services such as SpaceX’s Starlink should be allocated through auctions.

The issue of satellite spectrum allocation has resurfaced, driven by a debate between Reliance Jio and satellite firms such as SpaceX's Starlink. The main contention lies in how the spectrum for satellite internet services should be allocated—either through auctions or through administrative pricing.

Reliance Jio has urged the Telecom Regulatory Authority of India (TRAI) to allocate satellite spectrum through an auction process. Jio's argument stems from the Supreme Court's 2012 judgment in the 2G spectrum case, which underscored the need for transparency and fairness in spectrum allocation.
Jio believes this judgment provides a legal basis for conducting auctions, ensuring that the allocation is competitive and market-driven.
However, this proposal has faced opposition from global satellite companies. They argue that satellite spectrum is shared among multiple operators and is not as scarce as terrestrial cellular spectrum, making auctions impractical.

Reacting to Jio’s demand for auctions, Elon Musk, founder of SpaceX, stated that auctions for satellite spectrum would be "unprecedented". SpaceX, through its Starlink service, is keen on expanding its satellite internet operations in India and prefers a non-auction route, similar to international practices.
In a parallel development, Sunil Mittal, chairman of Bharti Enterprises, initially remarked that satellite firms serving urban elite customers should buy spectrum. However, Airtel later clarified that it does not support auctioning satellite spectrum, aligning more closely with SpaceX’s position.

Minister of Communications Jyotiraditya Scindia has clarified that the Telecommunications Act, 2023 ensures that satellite spectrum will be allocated through the administrative mode. He emphasized that while the spectrum will come at a cost, the pricing will be decided by TRAI, following a transparent administrative process.
Scindia highlighted that India is aligning with global norms in this regard. He argued that satellite spectrum, especially at higher frequencies (above 7-8 GHz), is inherently shared, making it difficult to auction. In his view, auctioning such a spectrum would be an anomaly on the global stage.

Minister Scindia’s remarks draw attention to the global standards for satellite spectrum allocation. Unlike the fiercely competitive auctions for cellular spectrum, satellite spectrum has typically been treated as a shared resource due to its technical nature.
Prime Minister Narendra Modi, speaking at the World Telecommunication Standardisation Assembly (WTSA), called for the establishment of a global regulatory framework for technology, akin to international aviation rules.
He pointed out that digital tools and services operate beyond national boundaries, and without global standards, no single country can adequately protect its citizens from emerging cyber threats.