Jio again calls for sale of satcom spectrum; telco says sector regulator overlooked the level playing field aspect

New Delhi: Reliance Jio has called on the telecom regulator to revise the consultation paper on satellite spectrum pricing, saying it has overlooked the critical aspect of a level-playing field between satellite and terrestrial networks.

The move by Jio once again brings to the centre stage a critical issue around satcom spectrum allocation. Telcos Jio and Vodafone Idea have been pushing for an auction of satellite bandwidth but satcom companies like Bharti Group backed-OneWeb and Bharti Airtel have backed administrative allocation of spectrum to be used for broadband-from-space services.

Many thought the issue had been decided once the new Telecommunications Act-which backed administrative allocation for satcom airwaves-was notified.

But in a letter to Telecom Regulatory Authority of India (Trai) chairman AK Lahoti dated October 4, 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.

Jio said the omission has resulted in the lack of any questions addressing the need to create a level-playing field between satellite and terrestrial services. "Consequently, stakeholders will not be able to adequately consider and provide relevant inputs to Trai, thereby undermining the fairness of recommendations and the government's intent to promote balanced competition," Jio said in the letter, a copy of which has been seen by ET. Jio has a joint venture with Luxembourg-based satellite provider SES to offer satcom services in India.

Jio's contention: Companies can provide similar mobility services through satcom airwaves like currently provided by telcos. Hence, like terrestrial, even satcom airwaves should be auctioned. But satcom players have been pitching for administrative allocation of satellite spectrum, citing that the airwaves are shared.

Jio, though, highlighted that the Department of Telecommunications' (DoT) reference to Trai sent on July 11, 2024, had asked for the recommendations on the terms and conditions of spectrum assignment, including spectrum pricing, while considering the need for a level-playing field with terrestrial access services.

"This deviation makes the consultation paper and the consequent recommendations vulnerable to legal challenges, particularly since it fails to address the issue outlined in the DoT's reference, such as ensuring level-playing field," Jio said in the letter. The letter was copied to communications minister Jyotiraditya Scindia, telecom secretary Neeraj Mittal and other DoT officials.

Further, the telco has questioned the tilt towards administrative allocation for satellite spectrum, which undermines Section 4 of the Telecommunications Act, 2023.

"Section 4(5)(a) of the Act emphasises auction as the default method for assigning spectrum for commercial services. As per the Act, all spectrum usages, including those in the First Schedule, should be evaluated against sub-clauses (i),(ii), and (iii) of Section 4(5)(a)," the letter said.

Jio said the absence of a detailed discussion on these provisions in the consultation paper raises concerns about its alignment with the Act. "Both auction and administrative assignment methods should remain open for stakeholders' input, with due consideration given to competitive forces," the telco said.

Trai on September 27 came out with a consultation paper seeking views on the pricing methodology and terms and conditions of allocating satellite spectrum-without auctions-to companies seeking to launch satellite broadband services in the country.

In its reference to Trai, DoT had said it's "essential to examine whether a level-playing field exists" between terrestrial access service providers and satellite players planning to offer fixed and mobile satellite services in India via low-earth orbit (LEO), medium-earth orbit (MEO) and geostationary orbit (GEO) global satellite systems.

Earlier, the DoT itself was asking for an auction of satellite spectrum. A reference to this effect was sent to Trai seeking recommendations for auction of satellite spectrum. However, with the notification of the Telecommunications Act, the Trai process became infructuous.