Indian telecom giants Reliance Jio and Airtel have urged the government to ensure fair competition in the satellite communications sector as it considers licencing and spectrum allocation for Elon Musk’s Starlink, according to a report by The Times of India.
The companies have stressed upon the need for “comparable” spectrum pricing for satellite operators to prevent what they describe as “market distortions.” The world’s richest man, Elon Musk, responded to an X user who noted that Indian telecom companies, including Reliance Jio, Airtel, and Vodafone Idea, have called for “fair competition” in the satellite telecommunications industry ahead of Starlink’s entry into India. “Fair competition would be much appreciated,” Musk wrote in response. This comes as the government is reportedly moving ahead with the licencing and spectrum allocation process for Starlink.
In a petition to the government, the telecom firms accused the Telecom Regulatory Authority of India (Trai) of failing to address the competitive disparity between satellite and terrestrial spectrum allocation. Their representation argued that satellite services offering similar connectivity should adhere to the same pricing, regulatory fees, and levies as terrestrial telecom providers, particularly in urban, semi-urban, and rural markets.
The telecom law enacted in December 2023 allows satellite spectrum to be allocated administratively for a fee, unlike terrestrial spectrum, which is auctioned. However, Trai is still finalising the pricing and allocation details.
Jio and Airtel also raised concerns about low-earth orbit (LEO) mega-constellations, stating that their broadband speeds and capacity rival those of terrestrial networks. “The surplus broadband capacity these entities bring to the market will distort competition for terrestrial broadband, especially in urban and semi-urban areas serving retail and enterprise customers,” the petition stated.
The telecom firms acknowledged that satellite spectrum should be allocated at lower costs for non-commercial uses such as government functions, disaster recovery, cellular backhaul, and sectors like defence, maritime, and aviation. However, they insisted that commercial satellite operators should not benefit from preferential pricing.
Despite industry opposition, the government has upheld its stance on administratively assigning satellite spectrum. Telecom Minister Jyotiraditya Scindia defended this approach, citing the inherent differences between terrestrial and satellite networks. “Terrestrial networks operate on exclusive frequency allocations, but satellite spectrum is shared. How do you auction something that’s shared? You can’t,” he stated.
Meanwhile, Starlink’s application for a satellite communications licence remains under review, awaiting security clearances. The company is in discussions with the Department of Telecommunications and the Ministry of Home Affairs as the approval process nears completion, ToI reported, citing sources.
