Advertisment

Conflict between telcos over spectrum allotment for satellite communication

Vodafone Idea proposed that the spectrum from 27.5 GHz to 29.5 GHz, including 27.5 GHz to 28.5 GHz, be subjected to a fair auction.

author-image
Ayushi Singh
New Update
orbit

The Telecom Regulatory Authority of India (TRAI) released a consultation paper on spectrum assignment for space-based communication, and major telecom players Reliance Jio, Vodafone Idea (VIL), and Bharti Airtel responded with differing views on how spectrum should be distributed for satellite communication services. Reliance Jio, Vodafone Idea, and other companies have pushed for the auctioning of spectrum, while Bharti Airtel has opposed it. On Friday, the feedback on the consultation paper was made public.

Advertisment

In the consultation paper issued by TRAI, the Department of Telecommunication's directions propose that the allocation of spectrum for space-based communication services be through the method of auction. This presumption that auction be the method of assignment brings about concerns and bias in the consultation process, as it only wishes to explore and establish a mechanism for assigning satellite spectrum.

The maximisation of the common good and benefiting the maximum number of people through spectrum assignment were key points made by Reliance Jio. According to the business, the most transparent way to accomplish this goal is through free and fair auctions, which let service providers choose their preferred technology, be it terrestrial, satellite, or another. Reliance Jio also cited a Supreme Court decision that categorically authorises the transfer of spectrum usage rights via open auctions.

In accordance with the 2012 Supreme Court ruling and the idea of equal rules for the same service, Vodafone Idea proposed that the spectrum from 27.5 GHz to 29.5 GHz, including 27.5 GHz to 28.5 GHz, be subjected to a fair and transparent auction.

Advertisment

Bharti Airtel, on the other hand, voiced worries over the potential drawbacks Indian carriers would have if the satellite frequency is put up for auction. The business stated that for comparable resources in other markets, international rival operators merely pay an administrative fee. Bharti Airtel voiced concern that selling off the satellite spectrum may put up barriers to competition because competitors might get access through bidding even if there was no worldwide allocation. According to Bharti Airtel, this might make satellite systems obsolete and seriously hamper India's developing space environment.

The idea of auctioning spectrum and then putting in place a sharing structure was also questioned by Bharti Airtel as being ineffective. The business compared it to placing a middleman between the spectrum licensor and user licensee and claimed that such middlemen are not required. According to Airtel, this would require a middleman to buy spectrum from the Department of Telecommunications (DoT) and then make it available to users of satellite spectrum via mandated sharing, adding unneeded complexity and various sharing agreements.

Indian Space Association (ISpA), group representing the space sector, in its key arguments against Satellite spectrum stated that, being a shared resource, cannot be effectively auctioned due to its non-exclusivity. The nature of satellite spectrum precludes it from being exclusively assigned, which is a fundamental requirement for an actionable resource. Auctions are typically suited for discrete and unique products that can be sold individually, whereas satellite spectrum does not meet this criterion.

Advertisment

Assignment of spectrum and orbitals are done in combination isolating one from other would not be possible. To illustrate this concept, one can consider orbital resources as plots of land and satellite spectrum as the road used to access these plots. Plots of land can be auctioned along with

the right-to-use roads, as they can be treated as discrete entities. However, roads in isolation cannot be auctioned, as their usage is not exclusive and blocking access would hinder the rights of plot owners and users.

"TRAI, with the authority bestowed on it by the Government of India, needs to have a larger, wider, and

comprehensive outlook, keeping in mind global practices of spectrum assignment as well as the technical challenges of auctioning. We are sanguine that TRAI, with a more open-minded study of the

multidimensional complexities of spectrum usage in space, will allocate it by administrative methods to help the nascent space industry to grow and be globally competitive," ISpA added.

The conflicting viewpoints offered by telecom companies and trade associations show how difficult it is to choose the best method for allocating spectrum for satellite communication services. As it works to create regulations that support the expansion and development of India's telecommunications sector, TRAI will carefully take these perspectives into account.

Advertisment