In Short:
Reliance Jio has asked the Telecom Regulatory Authority of India (Trai) to change its consultation paper on satellite spectrum pricing. Jio believes the paper overlooks the need for fair competition between satellite and traditional networks. They also criticized the focus on administering spectrum allocations instead of auctions, which could lead to legal issues and imbalance in market competition.
Reliance Jio’s Concerns Over Satellite Spectrum Pricing
Reliance Jio has formally requested the Telecom Regulatory Authority of India (Trai) to revise its consultation paper on satellite spectrum pricing. The company asserts that the crucial issue of establishing a level playing field between satellite and terrestrial networks has been neglected by the regulator.
Administrative Allocation vs. Auction
In its correspondence with Trai Chairman AK Lahoti, Jio expressed concerns regarding the inclination towards administrative allocation of satellite spectrum. The operator advocates for the auctioning of these airwaves instead. Jio’s letter, dated October 4, highlights that the omission of critical questions regarding fair competition hinders stakeholders from providing meaningful input to Trai, ultimately compromising the integrity of the recommendations and the government’s objective to foster balanced competition.
Referencing the Department of Telecommunications
The largest telecom operator referenced a communication from the Department of Telecommunications (DoT), sent to Trai on July 11, 2024. This communication emphasized the need for recommendations relating to spectrum assignment terms and pricing, particularly in the context of ensuring a level playing field with terrestrial access services. Jio pointed out that this deviation could expose the consultation paper and resulting recommendations to legal challenges due to its failure to address key issues raised by the DoT.
Concerns About Legislative Compliance
Moreover, Jio criticized the tendency towards administrative allocation as potentially contravening Section 4 of the Telecommunications Act, 2023. Jio’s letter notes that Section 4(5)(a) emphasizes auction as the default method for assigning spectrum for commercial services. The absence of thorough discussion regarding these provisions in the consultation paper raises doubts about its compliance with the Act.
Need for Stakeholder Input
Jio advocates for the inclusion of both auction and administrative assignment methods in the discussion, highlighting the importance of considering competitive dynamics. Trai’s recent consultation paper, released on September 27, seeks public opinions on the pricing methodology and terms for allocating satellite spectrum without auctions to companies that aim to launch satellite broadband services in India.
In its directive to Trai, the DoT underscored the importance of evaluating the existence of a level playing field between terrestrial access service providers and satellite operators, particularly those planning to deliver fixed and mobile services through low-earth orbit (LEO), medium earth orbit (MEO), and geostationary orbit (GEO) satellite systems.
