Larsen & Toubro (L&T), NASSCOM and Tata Group have opposed the allocation of spectrum for satellite communication services through auction. These entities have expressed their concerns in response to a consultation paper released by the Telecom Regulatory Authority of India (TRAI), titled “Assignment of Spectrum for Space-based Communication Services.”
According to L&T, the field of satellite communication is inherently intricate, and utilising auction-based models may result in outcomes that are less than optimal for the industry as a whole. Unlike conventional telecommunication services that mainly involve point-to-point communication, satellite communication necessitates substantial and contiguous spectrum blocks. An auction-based approach could potentially fragment the available spectrum, posing challenges for operators in delivering efficient services. The company added that numerous nations have encountered setbacks in auctioning spectrum for satellite services. As an illustration, the UK government’s auction of the 2.3 GHz and 3.4 GHz spectrum for 5G services in 2018 failed to generate bids from prominent mobile operators. This failure was primarily attributed to the government’s establishment of lofty reserve prices. Comparable instances of unsuccessful auctions have been witnessed in countries including Australia and Germany.
Meanwhile, NASSCOM said the satellite spectrum, unlike terrestrial spectrum, can be shared among multiple service providers without diminishing what is available to others. Due to its non-exclusive nature, the existing well-established administrative route is the most efficient method of allocation. The industry body stated that auctioning spectrum would create an artificial limitation of the number of satellite operators sharing spectrum and impact services like broadcasting and broadband. It will also create entry barriers and limit participation in the satcom sector to only a few players because auctions are expensive. For many small players, making such heavy investments in an auction may not be feasible.
Further, Tata Group entities, Nelco and Tata Play, have also asserted that auctioning spectrum would not be optimal. According to Nelco, unlike the terrestrial spectrum, satellite spectrum can be used simultaneously by multiple service providers around the world on a non-exclusionary basis. In other words, multiple satellite operators can use the same spectrum without excluding others. Because of its non-exclusive nature, space spectrum is not scarce, with no risk of individual players grabbing it.
