Satellite spectrum auction may lead to ‘monopolistic situation’ in India: IAFI

The ITU-APT Foundation of India (IAFI) has said satellite operators would not be able to compete with mobile operators in spectrum auctions due to different business models.

“This would lead to mobile operators winning the satellite spectrum auctions and becoming the exclusive “gatekeepers” of satellite-usable spectrum in the country,” the IAFI said in its counter-comments to the Telecom Regulatory Authority of India (TRAI).

According to IAFI, the auction winner would become the “spectrum gatekeeper” with which satellite operators would have to negotiate a private contract agreement in a “non-transparent process” to be able to use the spectrum that could have been shared in the first place.

IAFI argued that this will lead to a “monopolistic or semi-monopolistic” situation which will hamper connectivity, limit the amount of usable spectrum, and achievable performance, and ultimately impact the end users.

“Furthermore, the aspect of possible “competition” between the two different services needs to be carefully represented,” it said.

The non-profit association also discarded the “same service, same rules” assertion, citing that it cannot be used to compare mobile cellular and satellite services due to their distinct operational characteristics and spectrum usage.

“Mobile services target densely populated areas and require exclusive spectrum use to avoid interference, leading to high spectrum costs. On the other hand, satellite services provide critical connectivity to rural and underserved areas, operating on a non-exclusive basis, which allows for spectrum sharing among operators,” said IAFI, suggesting a “right rule for right service” model instead.

It is to be noted that Jeff Bezos-led Amazon, Bharti Group-based OneWeb, and Elon Musk’s Starlink have openly dismissed Mukesh Ambani-driven Reliance Jio’s call for “same service, same rules” principle for allotment of satellite spectrum, saying it is a totally misleading approach towards spectrum policy.

They added that trying to fit the satellite service model into the “same service, same rules” narrative is not only misguided but even risks stifling the enormous potential that satellite services hold for achieving digital inclusivity in India.

IAFI said that while cellular services reach billions of customers with corresponding revenues, satellite service provision is, in comparison, niche but indispensable, filling in the gaps in terrestrial service provision to “guarantee safety, connectivity and equal opportunity”.