In Short:
The Indian Department of Telecommunications (DoT) has provisionally allocated satellite spectrum for six months, allowing companies like Eutelsat OneWeb and Jio to test their satcom services. These firms can demonstrate compliance but can’t charge customers yet. The DoT plans to finalize commercial rollout conditions after recommendations from the Telecom Regulatory Authority of India (Trai). India’s satellite market is growing, especially in rural areas.
Allocation of Satellite Spectrum
In a significant move towards the launch of satellite communication services in India, the Department of Telecommunications (DoT) has provisionally allocated satellite spectrum to eligible providers for six months. This decision is expected to facilitate firms, including Bharti-backed Eutelsat OneWeb and Reliance Jio’s satellite unit, in testing their services.
Conditions of Spectrum Allocation
The allocated spectrum will enable companies to demonstrate compliance with security and technical conditions. According to the DoT, spectrum will be available only to those firms that secure a license from the DoT and obtain an In-Space authorisation certificate. Currently, relevant approvals have been granted to OneWeb and the Jio-SES partnership.
Testing Services
While these companies will be permitted to offer services to consumers during the testing period, they are not authorized to charge for these services, as commercial rollout is not yet sanctioned. Notably, there is no cap on the number of customers, allowing extensive testing of their services.
Global Competitors Await Licensing
Companies such as Starlink and Amazon have not yet acquired the Global Mobile Personal Communications by Satellite Services (GMPCS) license, preventing them from receiving spectrum allocation.
Future Spectrum Allocation Plans
Previously, the DoT had allocated a limited amount of demo spectrum to OneWeb for a duration of 90 days to test network capabilities. The DoT is anticipated to provide additional spectrum for commercial rollout following recommendations from the Telecom Regulatory Authority of India (Trai) regarding pricing and other modalities.
Disagreement Among Satellite Communication Players
The allocation of satellite spectrum has once again sparked disagreements among industry players, particularly between Reliance Jio and other satellite communication companies. Recently, Jio submitted a letter to Trai, urging a revision of the consultation paper on satellite spectrum to address the need for a level playing field between satellite and terrestrial networks.
Calls for Auctioning Spectrum
As India’s largest telecom company, Reliance Jio has raised concerns regarding the regulatory inclination towards administrative allocation of satellite spectrum, advocating instead for an auction-based approach. This viewpoint is supported by other firms such as Vodafone Idea, emphasizing that advancements in technology enable both satellite and terrestrial platforms to compete. In contrast, this perspective is contested by Bharti-backed Eutelsat OneWeb and other satellite communication operators. However, with the implementation of the Telecommunications Act, all operators are expected to receive spectrum through administrative allocation.
Potential of the Satellite Communications Market
The satellite communications market in India is still in its early stages but presents considerable potential, particularly in addressing the needs of rural and remote areas. A recent report by EY-ISpA estimates that India’s space economy is projected to grow to $13 billion by 2025, reflecting a compound annual growth rate of 6% from approximately $9.6 billion in 2020.
