DoT provisionally allocates satellite spectrum to eligible players

In a big step towards launch of satcom services in India, the Department of Telecommunications (DoT) has allowed provisional allocation of satellite spectrum to eligible players for a period of six months, giving a boost to firms like Bharti-backed Eutelsat Oneweb and Reliance Jio’s satellite arm to test their services.

The spectrum will be given so that companies can demonstrate all the compliances related to security and technical conditions. The DoT has stated that spectrum can be given only to firms which have secured license from DoT as well as In-Space authorisation certificate. So far, apart from Oneweb and Jio-SES combine have got the requisite approvals.

The move will allow these firms to offer services to consumers but can’t charge them as commercial rollout won’t be permitted. But since there is no cap around the number of customers, the firms can test the services at length.

Firms like Starlink and Amazon are yet to get the global mobile personal communications by satellite services (GMPCS) licence, so they won’t be getting the spectrum.

Earlier, DoT allocated some quantum of demo spectrum to Oneweb for 90 days, allowing it to test the network capabilities.

The DoT is likely to offer spectrum for commercial rollout once Telecom Regulatory Authority of India (Trai) gives its recommendations on pricing and other modalities.

The issue around satellite spectrum allocation has once again become the point of disagreement between Reliance Jio and other satcom players. Jio has last week written to Trai to revise the consultation paper on satellite spectrum saying it has overlooked the critical aspect of a level-playing field between satellite and terrestrial networks.

India’s largest telco has also questioned the regulator’s tilt towards administrative allocation of satellite spectrum, raising the pitch for auction of such airwaves.

The likes of Reliance Jio and Vodafone Idea have been supporting auction as the mode for satellite spectrum allocation as with technology advancements both satellite and terrestrial would be competing. The viewpoint was, however, opposed by Bharti-backed Eutelsat OneWeb and other satcom players. But with the notification of Telecommunications Act, all the players are expected to be given administratively.

The satellite communications market in India is at a nascent stage but the potential is significant, particularly in rural and remote areas. As per an EY-ISpA report, India’s space economy is set to expand to $13 billion by 2025, recording a compound annual growth rate of 6% from nearly $9.6 billion in 2020.