ISLAMABAD: Indian telecom giants Reliance Jio and Bharti Airtel have raised concerns over India’s proposed satellite spectrum pricing, warning that “unjustifiably low” fees could unfairly benefit satellite internet providers like Elon Musk’s Starlink and harm their businesses.
The debate centers on the pricing model for satellite communication (satcom) licenses in India, which impacts competition in broadband services.
Telecom Giants Demand Fair Spectrum Pricing
India’s telecom regulator recently proposed that satellite service providers pay 4% of their annual revenue as a fee to the government.
However, traditional telecom companies argue this rate is significantly lower than what they pay for terrestrial spectrum.
Reliance and Airtel contend that terrestrial operators incur much higher upfront auction costs and overall spectrum payments that are roughly 21% more than what satellite firms would pay under the new proposal.
The Cellular Operators Association of India stressed that the price per MHz spectrum should be comparable between satellite and terrestrial services, especially as both target the same consumers with similar broadband services.
Satellite Services vs. Terrestrial Broadband: The Ongoing Dispute
Starlink, backed by Elon Musk, has pushed for satellite spectrum licenses to be assigned rather than auctioned, arguing that spectrum is a natural resource meant to be shared and not sold.
This contrasts with the terrestrial telecom players’ stance, who have invested nearly $20 billion acquiring 5G spectrum through auctions.
The issue remains under review by India’s telecom ministry, with government sources acknowledging industry concerns but yet to finalize a decision.
The dispute highlights the growing competition between traditional telecom providers and satellite internet services in India’s broadband market.
