Satcom Spectrum To Be Allocated Administratively: Telecom Min

SUMMARY

Scindia said that the cost of spectrum and the formula of allocation will be decided by the Telecom Regulatory Authority of India

The minister said that the move is in line with what the majority of the nations have done so far globally

This comes weeks after TRAI floated a consultation process to explore the methodology and pricing for assigning spectrum to satcom companies to offer calling and internet services

Telecom minister Jyotiraditya Scindia on Tuesday (October 15) reportedly said that satcom spectrum will be allocated administratively but will come at a cost.

As per PTI, Scindia said that the cost of spectrum and the formula of allocation will be decided by the Telecom Regulatory Authority of India (TRAI).

“The Telecom Act 2023… has very clearly put this in Schedule 1, which means that satcom spectrum will be allocated administratively. That does not mean that spectrum comes without a cost. What that cost is and what the formula of that cost is going to be will not be decided by you and me but it will be decided by TRAI,” he reportedly said.

Speaking on the sidelines of the India Mobile Congress, the minister said that TRAI will come up with the “best prices that should be adopted”. On the government’s rationale for opting the administrative allocation, Scindia said that the move is in line with what the majority of the nations have done so far.

“Also, satellite spectrum is shared spectrum. Now if spectrum is shared then how can you price it individually? There are a number of issues that go into making that decision, which is why, globally, all countries in the world followed a certain part and India is doing pretty much the same,” he reportedly added.

The minister’s comments came right after Bharti Enterprises chairman Sunil Mittal, earlier in the day, urged the Centre to ensure that the satcom space is governed by the same rules as that of the telecom sector.

“Satellite firms looking to serve urban premium markets should obtain telecom licences and buy spectrum under the same conditions as telecom operators. This simple solution can be applied worldwide,” added Mittal.

The comments come weeks after TRAI floated a consultation process to explore the methodology and pricing for assigning spectrum to satcom companies to offer calling and internet services in the country.

Right afterwards, telecom giant Reliance Jio last week shot off a letter to the telecom regulator and pitched for auctioning satcom spectrum. Calling for TRAI to revise the consultation paper on satellite spectrum, the letter noted that the paper overlooked the critical aspect of a level-playing field between satellite and terrestrial networks.