TRAI Mulling Satcom Spectrum Allotment For Five Years; A Fourth Of Starlink’s Demand: Report

As Elon Musk-led Starlink gears up for its much awaited India entry, there might be some regulatory hurdles that the company might face. A report by Reuters said that the telecom regulatory authority of India (TRAI) is mulling to recommend allotment of satellite broadband spectrum for five years to assess initial market adoption. 

The report quotes a senior government saying that the 5-year limit is a fourth of Musk’s demand of a 20-year permit for Starlink’s satellite broadband spectrum. For context, satellite broadband spectrum are specific radio frequencies used by satellites to transmit and receive data for internet access and other communication services. 

In October, the telecom minister Jyotiraditya Scindia said that satcom spectrum will be allocated administratively but will come at a cost. Back then, he added that the cost of spectrum and the formula of allocation will be decided by the 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,” he had said. 

Since the segment is still in a nascent stage, the source told the authority that a lower licence time-frame will help the government gauge the sector’s growth. 

“This will help understand how the market stabilises, so there’s no point going beyond five years,” the official told the publication. The TRAI might take up to about a month to give its recommendation to include a time frame and pricing of satellite spectrum, the report added. 

The development comes within days of Starlink joining hands with telecom operators Jio and Bharti Airtel to enter the Indian turf. However, the implementation of the agreement hinges on SpaceX obtaining authorisation from regulatory authorities to offer Starlink’s services in the country.

“The agreement with SpaceX is part of Jio’s commitment to ensuring that reliable internet is fully accessible to all enterprises, small and medium businesses, and communities across India. Starlink complements JioAirFiber and JioFiber by extending high speed internet to the most challenging of locations in a quick and affordable manner,” Jio’s statement from March 12 read. 

However, Starlink’s India plans still hinge on the government’s decisions on the pricing of the Satcom spectrum. While Musk has appreciated the government’s decision to allot the spectrum administratively, his Starlink has been seeking security clearance for a licence to offer satellite broadband services in India since November.