In Short:
The Department of Telecommunications (DoT) has temporarily granted satellite spectrum to Eutelsat OneWeb and Reliance Jio’s satellite unit, allowing them to test satellite services for six months. These companies can demonstrate compliance with security and technical standards but cannot charge users yet. Initially, they will focus on B2B services, as consumer demand for satellite communications is low due to cheaper alternatives.
Satellite Spectrum Allocation by DoT
The Department of Telecommunications (DoT) has provisionally allocated satellite spectrum to Bharati-owned Eutelsat OneWeb and Reliance Jio’s satellite division. This allocation marks a significant advancement towards the initiation of satellite services in India, as these satellite communication (satcom) companies have been granted the spectrum for a duration of six months.
Rationale for Spectrum Provision
The DoT has provided this spectrum to enable the involved satcom firms to demonstrate their compliance with the necessary security and technical requirements. Only organizations that have secured a license from the DoT, along with an In-Space authorization certificate, are eligible for this allocation. According to a report from Economic Times, Jio-SES and Eutelsat OneWeb are the only beneficiaries meeting these prerequisites.
Service Offerings and Limitations
With this provisional allocation, the relevant satcom companies can commence offering services; however, these services will not be commercial, meaning they cannot charge users during this testing phase. This initiative is crucial for the telecommunications firms to evaluate their technology and demonstrate the effectiveness of satellite communications to regulators, the government, and consumers.
Focus on B2B Services
Notably, there is currently no potential for direct consumer services from either of the aforementioned satcom companies, as both aim to initially operate within the B2B sector. This strategic approach is primarily due to the lower costs associated with mobile data and fiber optics, which diminishes consumer interest in more expensive satellite communication services.
Previous Spectrum Allocation and Future Considerations
OneWeb has previously received provisional spectrum for a period of 90 days, allowing it to test its network capabilities. A pressing concern for the DoT and the Telecom Regulatory Authority of India (TRAI) is the pricing and allocation dynamics concerning the spectrum. At this stage, TRAI has expressed support for the administrative allocation of airwaves, a move that may not be well-received by other telecommunications players.
