TRAI rejects COAI's recommendations on satcom spectrum allocation

The Telecom Regulatory Authority of India (TRAI) has reaffirmed its stance on the administrative allocation of satellite communication (satcom) spectrum, pricing it at 4% of the operators' adjusted gross revenue (AGR) for a five-year term. This decision, despite objections from telecom operators represented by the Cellular Operators Association of India (COAI), underscores TRAI's commitment to fostering a diverse and competitive telecommunications landscape.

Balancing innovation and fair competition

COAI, representing industry players like Reliance Jio and Bharti Airtel, has raised concerns that the proposed spectrum pricing favours satellite operators, potentially disrupting the competitive equilibrium. They argue that such pricing could give an undue advantage to new entrants like Starlink, especially when terrestrial operators have invested heavily in spectrum auctions. However, TRAI maintains that its recommendations followed an exhaustive and transparent consultation process, aiming to facilitate the growth of satellite-based communication services, particularly in underserved regions.

The imperative of inclusive connectivity

India's vast and diverse geography presents unique challenges in ensuring universal connectivity. Satellite communication offers a viable solution to bridge the digital divide, reaching remote and rural areas where terrestrial networks are economically unfeasible. And, TRAI believes that by endorsing a more accessible spectrum pricing model for satcom services, it is not only promoting technological innovation but also addressing the critical need for inclusive digital infrastructure.

TRAI's decision to proceed with its recommendations, despite COAI's objections, reflects a nuanced understanding of the evolving telecommunications ecosystem. And, by facilitating satellite services' entry into the market, TRAI is encouraging competition that could lead to better services and pricing for consumers, without necessarily disadvantaging existing terrestrial operators.