The Telecom Regulatory Authority of India (TRAI) is reportedly set to propose a satellite broadband spectrum allotment for approximately five years to evaluate initial market adoption. This approach goes against Elon Musk’s Starlink, which has been advocating for a 20-year permit.
TRAI is currently formulating key recommendations for the central government, covering the duration and pricing of the satellite spectrum, which will be assigned administratively. In a recent development, Musk and Mukesh Ambani have entered a partnership, enabling Starlink devices to be sold in Reliance stores, thereby securing extensive distribution access.
While Starlink has urged New Delhi to allocate spectrum for two decades to facilitate affordable pricing and long-term planning, Reliance has proposed a three-year period, after which it wants India to reassess the market. Similarly, Bharti Airtel, has backed a licensing period of three to five years. Like Reliance, Airtel has also signed a distribution deal with Starlink. Musk’s deals with Reliance and Airtel are subject to Starlink winning pending regulatory clearances in India.
TRAI appears inclined towards a shorter licensing period of around five years to observe sector growth before making further decisions. Further, a shorter duration would allow the government to reassess and adjust spectrum prices as the market evolves.
Furthermore, it is expected that TRAI will take about a month to finalise its recommendations on the licensing period and per megahertz spectrum pricing before submitting them to India’s telecom ministry for further review. The cost of satellite spectrum is anticipated to be significantly lower than that of traditional telecom licenses, which are auctioned for 20-year terms.
