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Jio urges TRAI to re-evaluate administrative auction of satellite spectrum

Abha Raverkar

3 min read | Updated on November 16, 2024, 14:51 IST

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SUMMARY

In a letter to TRAI on Friday, Reliance Jio asked the government to allocate satellite spectrum via auctions citing concerns that domestic telecom players could suffer. This comes a month after the government chose to assign satellite telecommunication (satcom) spectrum via administrative allocation.

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Reliance has spent $23 billion on spectrum auctions over the years and has carried about 15 billion GB of data every month in India

Reliance has spent $23 billion on spectrum auctions over the years and has carried about 15 billion GB of data every month in India

Reliance Jio has asked the Telecom Regulatory Authority of India (TRAI) to re-evaluate the awarding of satellite spectrum to Elon Musk's Starlink and Amazon's Kuiper, citing concerns that domestic telecom players could suffer, in a letter sent on Friday.

Reliance Jio’s letter to TRAI comes after the spectrum of satellite services was assigned via administrative allocation, as Musk-led Starlink wanted. Reliance was expecting auction allocation of the spectrum.

During TRAI’s recent open house discussions (OHD), Mukesh Ambani-led Jio argued that Musk’s Starlink and Amazon’s Kuiper have made it clear that they want to service customers across the nation and not just those in unserved areas.

"Starlink, Kuiper (Amazon), and other major satellite providers have collectively acknowledged that their services will not only compete with terrestrial communication services but will provide comparable or same quality, if not better, of communication services, in all areas be it rural or urban and will directly compete with the terrestrial services," the letter stated.

India’s leading telecom company further argued that this provides sufficient justification for the Indian government to opt for an auction rather than an administrative allocation of spectrum.

“Assignment through the auction will provide an opportunity for Indian entities to directly compete with foreign entities, who have blocked first-come-first-served based ITU (International Telecommunication Union) priority list, and plan their own constellation. In the absence of clarity and certainty of spectrum assignment/priority, no Indian entity will ever be able to launch its own NGSO (non-geostationary orbit) constellation,” Jio said.

Jio further said Starlink and Kuiper have more bandwidth capacity that can easily rival all three leading operators put together.

As per Jio’s calculations, the company, along with its Indian competitors Vodafone Idea and Airtel, has built a total capacity of 23,012 million GB, in contrast to Starlink and Kupier who have a combined capacity of 29,092 million GB.

Reliance has spent $23 billion on spectrum auctions over the years and said it has carried about 15 billion GB of data every month in India. Meanwhile, Starlink with a much lower outlay and an estimated capacity of 18 million GB, would target the same customer base as Jio, Reuters reported.
Musk’s Starlink has previously adopted aggressive pricing strategies. Musk priced Starlink at $10 per month in Kenya, in contrast to the $210 it charged in the US, leaving domestic telcos disgruntled, Reuters said.

The Indian telecom major said that the auction must be a preferred mode of spectrum assignment for satcom services (for both mobile satellite service and fixed satellite service) as it will foster transparency and equal opportunities among various operators.

With inputs from PTI
Uplearn

About The Author

Abha Raverkar
Abha Raverkar is a post-graduate in economics from Christ University, Bengaluru. She has a strong interest in the markets and loves to unravel the nitty-gritties of the latest happenings in the world of markets, business, and economy.

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