News

Reliance Jio Opposes Satellite Spectrum’s Commercial Use Without Auction

Some PE Investors In Reliance Jio May Look For An Exit Soon, Says Bernstein
SUMMARY

In a letter to the DoT, Jio has suggested the companies should be refunded the amount paid for spectrum acquisition through auction if FWA for satellite communication players is permitted

The DoT is in the process of finalising rules concerning the administrative allocation of spectrum, particularly for satellite communication, including GMPCS holders

The new Telecommunication Bill, 2023, has opted for the allocation of satellite communication licences via an administrative route

Inc42 Daily Brief

Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy

Reliance Jio has reportedly written to the telecom department stating it should not allow administratively-allocated satellite spectrum to be used for providing commercial services like fixed wireless access (FWA), as it’s a 5G use case and should be offered only through auctioned spectrum.

In a letter to the Department of Telecommunications (DoT), Jio suggested the companies should be refunded the amount paid for spectrum acquisition through auction if FWA for satellite communication players is permitted, ET reported citing officials aware of the matter.

For the uninitiated, the FWA technology offers fixed broadband access using radio frequencies.

Jio is among the several big names vying for a licence in India’s satellite broadband space.

“The spectrum allocation to any entity for providing commercial services should be done through auction only,” Jio told DoT, as per the report.

The Department of Telecommunications (DoT) is in the process of finalising rules concerning the administrative allocation of spectrum, particularly for satellite communication, including global mobile personal communication by satellite services (GMPCS) holders.

There are indications that the DoT might include clauses preventing satellite communication firms from directly offering services to retail customers, the report said. However, the department may permit satellite communication services to be provided through fixed terminals. Nonetheless, it remains uncertain whether FWA will be permitted under these regulations.

It is pertinent to note that the new Telecommunication Bill, 2023, has opted for the allocation of satellite communication licences via an administrative route. This was seen as a significant win for players like Bharti Airtel-backed OneWeb, Elon Musk’s Starlink and Amazon’s Kuiper.

Jio has been pushing for an auction for allotting spectrum for satellite broadband services for a long time. Last year, in response to a consultation paper floated by the Telecom Regulatory Authority of India (TRAI), Jio batted for auction-based allocation as against OneWeb, Starlink and Kupier which pitched for administrative assignment of the spectrum for providing satellite communication services.

Notably, OneWeb received the nod from the Indian National Space Promotion and Authorisation Centre (IN-SPACe) in November last year to launch its commercial satellite broadband services in India. Starlink was also expected to soon get the permission from the DoT to provide satellite broadband services.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

Inc42 Daily Brief

Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy

Recommended Stories for You