The Telecom Regulatory Authority of India (TRAI) has dismissed a request by the Cellular Operators Association of India (COAI) to reconsider its recommendations on the allocation and pricing of spectrum for satellite communication services. TRAI reiterated that its consultation process was comprehensive, transparent, and involved all relevant stakeholders. The regulator maintained that its recommendations aim to foster innovation and competition, ultimately expanding consumer access to connectivity options.
COAI had earlier objected to the proposed spectrum pricing for satellite services, arguing that the rates were set too low. The association warned that such pricing could distort the competitive landscape by placing terrestrial service providers at a disadvantage. According to COAI, satellite firms could use the lower charges to offer cheaper services, potentially drawing users away from traditional terrestrial networks. This could threaten the financial sustainability of operators that have invested heavily in terrestrial infrastructure.
In response, satellite companies rejected the telcos’ claims, asserting that TRAI had not overlooked the issue of competitive parity. They noted that the regulator’s recommendation for differential pricing between urban and rural areas was intended precisely to ensure a level playing field between satellite and terrestrial broadband services.
Additionally, they pointed out that TRAI had revised its earlier recommendation to suggest a higher fee for satellite spectrum, which they said further promotes parity. The companies added that the regulator’s proposals were unlikely to have been made without the central government’s concurrence, given its support for administratively allocating satcom spectrum.
Further, the telcos’ objections have been described as an attempt to push for an auction-based model, by the satcom industry, which would force satcom providers to incur significant upfront costs. TRAI’s recommendations, however, do not include any proposal for upfront payments or allocation fees for satellite spectrum.
