A telecom regulator suggests allocating satellite spectrum for five years: Report

The Telecom Regulatory Authority of India (TRAI) has proposed a five-year allotment for satellite spectrum dedicated to commercial communication services, with an option for a two-year extension. This proposal, which supports administrative allocation over auctioning, aims to encourage long-term investment in satellite-based connectivity.

This move comes at a pivotal moment, as global players like Elon Musk’s Starlink and domestic telecom giants, such as Reliance Jio and Bharti Airtel, intensify their interest in satellite internet services. Musk, in particular, has been pushing for a 20-year spectrum allotment to ensure affordable pricing and a stable foundation for Starlink’s high-speed satellite internet rollouts across India. Earlier this year, Musk partnered with Reliance Retail to distribute Starlink devices via Mukesh Ambani’s network of stores—marking a significant shift in the longstanding telecom rivalry between Ambani's Reliance Jio and Starlink.

Key takeaways from this development:

1. Regulatory Shift:
   TRAI’s recommendations suggest a move toward a more predictable, long-term strategy for satellite broadband, contrasting with the previous auction-based approach favored by Reliance Jio. This will likely lower barriers for new players and speed up network rollouts.

2. Strategic Timing:
   The recommendation aligns with growing interest in space-based communications as a solution for remote and underserved regions. The potential for high-speed satellite internet could be a game-changer for India’s digital infrastructure.

3. Industry Reactions:

   • Reliance Jio, which previously pushed for spectrum auctions, now finds itself backing the short-term 3-to-5 year allotment proposal, signaling a pragmatic shift.

   • Bharti Airtel also supports the recommendation, reflecting a shared interest among telecom players in boosting satellite connectivity.

   • Global players like Starlink are encouraged by the prospect of regulatory clarity that will allow them to accelerate operations in India, a key market for expanding their footprint.

This move is seen as a significant step towards transforming India’s digital landscape by enabling more robust satellite internet services, which could bring affordable connectivity to remote areas. The shift also reflects the convergence of global and domestic telecom interests, marking a new chapter in India’s evolving telecommunications strategy.