Allocating satellite spectrum: Jio vs Starlink spat and why most countries avoid auctions

The Telecommunications Act, 2023, has added spectrum for outer connection successful the database of administrative allocation. The Department of Telecommunication (DoT) had aboriginal asked the Telecom Regulatory Authority of India (TRAI) to travel up with a methodology to delegate the spectrum.

With TRAI exploring pricing models for the service, Jio wrote to the regulator making a lawsuit for auction of outer spectrum. Their indispensable statement is that administrative allocation whitethorn not beryllium capable to bring astir a level playing tract betwixt outer and terrestrial services. Musk, however, responded to the submissions, saying: ““That would beryllium unprecedented, arsenic this spectrum was agelong designated by the ITU arsenic a shared spectrum for satellites”.

With Telecom Minister Jyotiraditya Scindia saying India volition travel the planetary norm by allocating outer spectrum, here’s a debased down connected what the work is and however countries person tried auctioning the airwaves to nary avail:

What is outer communication, and what benefits does it connection to end-users?

Satellite connection services trust connected an array of satellites successful orbit to connection connectivity to homes and businesses connected the ground. They are an alternate to crushed based communication, called terrestrial networks, specified arsenic cable, fibre, oregon integer subscriber enactment (DSL), and they don’t necessitate wires to transmit data.

For end-users, satellite-based connection and broadband services connection benefits connected 2 cardinal points: wider coverage, and a much resilient network. Even though the latency of satcom services tin astatine times beryllium higher than terrestrial broadband networks, they tin screen immense swathes of areas with precise small carnal instrumentality needing to beryllium installed.

Satellites that orbit successful abstraction are captious for connection networks to scope the farthest corners adjacent successful distant locations that mobile telephony cannot access. Thus, it is mostly understood that erstwhile satcom services volition go much mainstream, a fig of debased lying areas, agrarian areas and areas impacted by predominant exigencies could payment from changeless connectivity.

Satellite-based net is besides mostly believed to beryllium much resilient than terrestrial-based connection services since they person comparatively less components connected the ground. The instrumentality for outer connection is, therefore, little apt to prolong harm during utmost upwind and different emergencies.

A latest study by KPMG successful India, has estimated that India’s satcom sector, which presently stands astatine $2.3 cardinal a year, volition scope $20 cardinal by 2028. At present, the state ranks 4th successful presumption of investments successful the sector, globally. According to Morgan Stanley, determination are 290.4 cardinal households successful India which are untapped with broadband and that tin beryllium a beardown marketplace accidental for outer operators to tap.

How bash countries astir the satellite delegate outer spectrum to operators?

It is archetypal important to recognize the cardinal quality betwixt spectrum for terrestrial networks and outer communication, and wherefore the favoritism betwixt allocation and auctioning arises successful the archetypal place. For terrestrial mobile services, the spectrum is exclusive and is managed lone by a azygous mobile relation successful a fixed geographic area; therefore, this cannot beryllium shared betwixt oregon amongst operators. While successful the lawsuit of satellites, the aforesaid spectrum is non-exclusive successful quality and it tin beryllium utilized by aggregate outer operators to service the aforesaid geographic area.

The wide trend, therefore, is of allocating the spectrum administratively.

A fewer countries, specified arsenic the United States of America, Brazil and Saudi Arabia, person conducted auctions for frequence spectrum successful the past. The US and Brazil conducted an auction of outer spectrum on with orbital slots. However, some the countries person since reverted to administrative duty aft uncovering the process infeasible.

The US past conducted an auction for outer spectrum successful 2004 for 3 home orbital slots for broadcasting services. Since then, it has abandoned outer auctions. In the US, an yearly regulatory interest for VSAT and equivalent C-Band antennas operating successful the 12 and 14 GHz is $595 per licence oregon authorisation.

In 2020, Brazil amended its regulatory model to regenerate outer auctions with administrative licensing. Though outer landing rights are assigned done bidding successful the country, the spectrum to beryllium utilized for outer services is not auctioned separately.

Saudi Arabia precocious conducted an auction of spectrum successful the S-band, which ranges from 2 GHz to 4 GHz and is utilized for mobile outer services (MSS) arsenic good arsenic upwind and aerial postulation power applications. However, since the method characteristics of the S-band are specified that it is assigned connected an exclusive ground for MSS, auction tin beryllium conducted successful a mode akin to the spectrum auction for terrestrial mobile services.