What is satellite spectrum, why most countries prefer not to hold auctions

Spectrum for satcom is portion of the archetypal docket of The Telecommunications Act, 2023 (“Assignment of spectrum done administrative process”). Under Section 4(4) of the Act, telecom spectrum shall beryllium assigned done auction “except for entries listed successful the First Schedule for which duty shall beryllium done by administrative process”.

“Administrative process” nether the Act “means duty of spectrum without holding an auction”, and “‘auction’ means a bid process for duty of spectrum”.

The Department of Telecommunication (DoT) had asked the Telecom Regulatory Authority of India (Trai) to travel up with a methodology to delegate the spectrum. As Trai explored pricing models for the service, Jio submitted to the regulator that administrative allocation whitethorn not beryllium capable to guarantee a level playing tract betwixt outer and terrestrial services.

In response, Musk posted connected X connected October 14 that an auction process “would beryllium unprecedented, arsenic this spectrum was agelong designated by the ITU arsenic shared spectrum for satellites”.

Satcom & its benefits

Satcom services usage an array of satellites successful orbit to supply connectivity connected the ground. They bash not necessitate wires to transmit data, and are an alternate to ground-based communication, called terrestrial networks, specified arsenic cable, fibre, oregon integer subscriber enactment (DSL).

For end-users specified arsenic homes and businesses, satellite-based connection and broadband services connection 2 cardinal benefits: 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 areas without needing to instal overmuch carnal equipment.

The usage of satellites allows connection networks to scope distant locations that mobile telephony cannot access. It is mostly understood that erstwhile satcom services go much mainstream, low-lying and agrarian areas, and areas prone to earthy disasters, volition payment from changeless connectivity.

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

Size of satcom sector

Consulting steadfast KPMG successful India has estimated successful a caller study that the country’s satcom sector, which presently stands astatine $2.3 cardinal a year, volition scope $20 cardinal by 2028.

India is ranked 4th successful presumption of investments successful the assemblage globally. Investment slope Morgan Stanley has estimated astir 290.4 cardinal households successful India are untapped with broadband, which contiguous a beardown marketplace accidental for outer operators.

Auction vs allocation

It is 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, spectrum is exclusive, and is managed lone by a azygous mobile relation successful a fixed geographical area; therefore, this cannot beryllium shared betwixt oregon amongst operators.

In the lawsuit of satellites, the aforesaid spectrum is non-exclusive successful quality — and tin beryllium utilized by aggregate outer operators to service the aforesaid geographical area.

The wide trend, therefore, is to allocate outer spectrum administratively.

Auction experiment

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

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

Brazil amended its regulatory model successful 2020 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 a spectrum auction 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. The method characteristics of the S-band are specified that it is assigned connected an exclusive ground for MSS; auction can, therefore, beryllium conducted successful a mode akin to the spectrum auction for terrestrial mobile services.