The Draft Telecom Bill introduced in the Lok Sabha in December proposes the assignment of satellite spectrum through an administrative process. This may resolve a long-standing debate over the mode of spectrum allocation. This move will also allow satellite communication (satcom) service providers to plan ahead with a stable policy regime.
Should satellite spectrum assignment be done through auction or administration? This issue has the industry divided sharply down the middle. While Reliance Jio called for the auctioning of spectrum, OneWeb “strongly recommended” that the government take the administrative allocation route and charge a fee “in order to promote investment and make sure competitive prices are available to the market at the end”. Starlink, led by Elon Musk, recommended a regulatory framework with nominal charges as spectrum use charges to ensure affordable access to services.
The Draft Telecommunications Bill, 2023 proposes administrative allocation of spectrum for satellite broadband services, in line with global norms. In corporate terms, this could be a big win for Bharti Airtel’s OneWeb, Elon Musk’s Starlink and Amazon’s Kuiper.
Administrative allocation will reduce costs for players because it bypasses a highly competitive, expensive auction process. However, there are reports that administrative allotment could be limited to point-to-point connection, with direct transmission to consumers not allowed via spectrum obtained through administrative allotment. The bill identifies teleports, television channels, direct-to-home, digital satellite news gathering, and very small aperture terminal (VSAT) and mobile satellite services in L and S bands, among others, for administrative spectrum allocation.
Satcom providers may have to wait several months for the completion of the allotment process. The Telecom Regulatory Authority of India (TRAI) will need to recommend a pricing mechanism and set a reserve price, and this will happen only after the appointment of a new chairperson. The Department of Telecommunications (DoT) has invited applications for the position twice, but it has remained vacant for several months.
Although the satcom economy holds a small share of the telecom ecosystem at present, it is expected to grow rapidly with the emergence of more use cases and a long list of start-ups. As the usage of satellite spectrum increases, its value may skyrocket, prompting the government to review the allotment process.
The administrative allocation of spectrum will allow multiple operators to use a particular band. This is technically feasible since the linear nature of satellite bands at particular locations on Earth can be serviced by a satellite in orbit only when the satellite is directly positioned above. As it moves past the point, another satellite owned by a different operator may service the band. Indeed, this is one reason why administrative allotment has been the global norm since it is difficult to split satcom spectrum into physical regions and auction it off.
According to Lt General (Retired) A.K. Bhatt, director general, Indian Space Association, “It is a progressive and forward-looking decision to allocate satellite spectrum through a globally harmonised administrative method. This will spur growth in the nascent space sector, foster healthy competition and ensure a level playing field for all stakeholders. By allocating spectrum for satcom through the administrative method, India could align itself with international standards, promote global cooperation and help drive innovation, create opportunities for startups and strengthen the country’s position in the global satellite market. This would also spur growth in downstream sectors.”
In addition, the satellite communication sector can improve internet access in remote areas where setting up a terrestrial network is difficult and expensive. Out of nearly 1.4 billion people in India, around 40 per cent do not have reliable internet access, primarily in rural and remote areas. These include the Himalayan belt, large parts of the Northeast, marine archipelagos like the Andaman & Nicobar islands and Lakshadweep, heavily forested regions and the ghats. Satcom emerges as a viable solution, offering improved backhaul for terrestrial networks and direct services to consumers.
Satcom addresses this potentially vast market. India’s satellite broadband market is expected to reach $1.9 billion by 2030, growing at a compound annual growth rate of 36 per cent, according to a report by Deloitte India.
Companies such as Jio Satellite Communications and OneWeb Eutelsat, in which Bharti Enterprises has a stake, already have licences to provide broadband services to end–consumers via satellite. Both companies have pan-Indian internet service provider (ISP) licences. DoT has granted ISP A (national area) and VSAT licences to OneWeb, and an ISP licence to Jio Satellite. Given the GMPCS (global mobile personal communication by satellite) and ISP licences, OneWeb and Jio Satellite may commercially roll out satcom internet services now that there is clarity on spectrum allocation.
MNC major Amazon has also applied for a satcom licence through its arm, Project Kuiper. The Ministry of Home Affairs will undertake a security check and an interministerial panel will take a final call on granting a licence to Amazon. DoT will analyse the proposal with respect to critical issues including the setting up of satellite gateways, data storage and transfer, etc. If a GMPCS permit is issued, Amazon will be able to offer broadband, voice and messaging services from space to consumers and enterprise customers. Starlink will presumably go through a similar process.
Jio is relying on a series of medium earth orbit (MEO) satellites owned by Luxembourg-based satellite telecommunications network provider SES. Jio has successfully demonstrated its Jio SpaceFiber service at the IMC. This would be India’s first satellite-based gigabit speed broadband service targeting previously inaccessible geographies.
Eutelsat OneWeb, a product of the merger between OneWeb and French satellite operator Eutelsat Communications, is leveraging a combination of geosynchronous equatorial orbit (GEO) and low earth orbit (LEO) satellites. It is the only company to possess both constellations. Eutelsat OneWeb could combine the network density and high throughput of GEO satellites with the low latency and ubiquity of LEO to offer fully integrated connectivity.
OneWeb India has authorisations from (IN-SPACe) to launch Eutelsat OneWeb’s commercial satellite broadband services. OneWeb India’s authorisation means that Eutelsat OneWeb can launch commercial connectivity services as soon as spectrum allocation is completed. Eutelsat OneWeb also has in-principle approval to establish and operate two gateways in Gujarat and Tamil Nadu. These gateways could secure the provision of vital highspeed, low-latency internet connectivity to customers across India once services are rolled out.
Sunil Bharti Mittal, chairman, Bharti Group, and vicepresident (co-chair) of the board of directors, Eutelsat Group, said, “This will be a critical step forward to meet India’s ambition of providing internet connectivity for all. Eutelsat OneWeb is ready to deploy as soon as it receives the final spectrum authorisation to launch commercial services.”
Cyril Dujardin, co-general manager, connectivity, Eutelsat Group, said, “Bridging the connectivity gap requires collaboration across businesses but also with governments and regulators. Having completed our LEO constellation last year, we are perfectly placed to deliver this vital connectivity service across India.”
The government is reportedly contemplating the utilisation of highspeed satellite connectivity as well as fixed wireless access, in addition to fibre, to connect rural areas under the revamped BharatNet project, which has a budgeted outlay of Rs 1.4 trillion. BSNL, which is the project management agency of BharatNet, is expected to roll out a tender in December 2023, to select companies for fibre deployment as well as operations and maintenance of sites under BharatNet.
Satcom could connect approximately 10 per cent of gram panchayats in remote and mountainous regions where fibre deployment is challenging. This would involve participation from private players such as Jio, Starlink and OneWeb. The government is considering connectivity via LEO and MEO satellites. Under Phase I and Phase II of the BharatNet project, some gram panchayats were provided broadband connectivity through GEO satellites using services from Hughes. However, GEO satellites may not be suitable for low latency applications, which are better serviced by LEO and MEO constellations.
In a written reply to the Rajya Sabha, Jitendra Singh, union minister of state for science and technology, estimated the current size of the Indian space economy at $8.4 billion. The space economy has also grown at an average compound annual growth rate of 8 per cent.
The minister informed that various schemes to encourage private sector participation were being announced and implemented by IN-SPACe, including seed fund schemes, pricing support policies, mentorship support, design labs for non-government entities and skill development in the space sector. The private sector will provide independent end-to-end solutions in satellite manufacturing, launch vehicle manufacturing, and provide satellite services and manufacturing ground systems.
As satcom gets off the ground, there will inevitably be more use cases and opportunities, accompanied by a significant surge in downstream activities. Satellite communication could play a pivotal role in development by providing business-critical connectivity in remote locations. By extending the geographical reach of telecommunications, it facilitates banking services, distance learning, connectivity for transporters, connectivity at sea, government services, defence applications, etc. With the promised policy support in the new telecom bill, we should see the majority of these prospects come to fruition.
