The Cellular Operators Association of India (COAI) has voiced disagreement over the recent recommendations on spectrum allocation for satellite-based communication services issued by the Telecom Regulatory Authority of India (Trai), warning that the move risks distorting India\u2019s digital infrastructure landscape by favouring non-terrestrial players.<\/p>\n
In a letter to the Department of Telecommunications (DoT), dated May 29, the COAI argued that TRAI\u2019s recommendations offer \u201ca regulatory advantage to commercial NGSO (non-geostationary orbit) satellites against terrestrial broadband service providers\u201d and, if implemented, \u201cwill undermine competition and create a non-level playing field.\u201dThe industry body that represents the three private telcos Bharti Airtel, Reliance Jio, and Vodafone Idea, said that Trai\u2019s recommended spectrum pricing mechanism was a major concern. <\/p>\n
The recommended framework includes the higher of 4% of adjusted gross revenue (AGR) or ` 3,500 per MHz per annum, plus ` 500 annually per urban customer. The COAI has argued that these charges are not only unjustified but are also lower than the administrative fees currently levied on GSO-based VSAT services despite next-generation satellite networks offering directly substitutable services to those offered by terrestrial service providers. <\/p>\n
\u201cTRAI has not provided a clear rationale or explanation for recommending the said charges,\u201d COAI said, adding that terrestrial operators continue to face significant upfront auction-determined spectrum costs\u2014often translating into 18% to 53% of AGR.<\/p>\n
It has argued that while terrestrial operators are bound by long-term spectrum payment commitments extending over a 20-year period at the revenues from over a billion subscribers, NGSO operators are not subject to similar financial or operational obligations, yet stand to benefit from long-term (up to 7 years) spectrum rights. <\/p>\n
Calling the consultation process \u201cnon-transparent\u201d and \u201cmisaligned with DoT\u2019s mandate,\u201d COAI has requested the formation of a DoT-led review committee to reassess the recommendations. \u201cThe price per MHz should be equivalent or at least comparable for both satellite and terrestrial services. Any deviation is an arbitrary distinction among service providers,\u201d it asserted. <\/p>\n
The association also questioned TRAI\u2019s reliance on the argument that satellite services are essential to bridge the digital divide. In its recommendations Trai had referenced an August 2024 letter by the DoT which said that NGSO satellite-based communication would play a significant role in bridging the digital divide in the country. <\/p>\n
\u201cNowhere did DoT claim that only NGSO satellite-based communication services can bridge the digital divide,\u201d COAI noted in its letter, adding that TRAI\u2019s recommendations fail to impose rural rollout obligations on satellite players despite invoking this rationale to justify ultra-low spectrum pricing.<\/p>\n
COAI further disputed TRAI\u2019s claim that NGSO systems are complementary, not competitive, to terrestrial networks. Citing examples like Starlink and Amazon\u2019s Project Kuiper, the association said these services are increasingly targeting mass-market and enterprise segments with high-speed, low-latency broadband, particularly in urban India. \u201cSatellite communication services are fast emerging as full-fledged competitors in the broadband market,\u201d COAI stated.<\/p>\n
It cited the example of Kenya where Starlink sustained 90% average growth and became the country\u2019s seventh largest internet service provider in 18 months on the back of what COAI called favourable regulatory framework. \u201cThis compelled Kenya\u2019s Communications Authority to correct the imbalance by proposing a nearly 1,000% increase in license fees for satellite internet service providers,\u201d it noted. <\/p>\n
The industry body has also raised objections over Trai\u2019s rationale of to factor in device ecosystem maturity while recommending spectrum pricing reiterating that the cost of device has historically not been a consideration in spectrum pricing decisions.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Cellular Operators Association of India (COAI) has voiced disagreement over the recent recommendations on spectrum allocation for satellite-based communication services issued by the Telecom Regulatory Authority of India (Trai), warning that the move risks distorting India\u2019s digital infrastructure landscape by favouring non-terrestrial players. In a letter to the Department of Telecommunications (DoT), dated May 29, the COAI argued that TRAI\u2019s recommendations offer \u201ca regulatory advantage to commercial NGSO (non-geostationary orbit) satellites against terrestrial broadband service providers\u201d and, if implemented, \u201cwill undermine competition and create a non-level playing field.\u201dThe industry body that represents the three private telcos Bharti Airtel, Reliance […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-935764","post","type-post","status-publish","format-standard","hentry","category-telecom"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/935764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=935764"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/935764\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=935764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=935764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=935764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}