The issue around satellite spectrum allocation in India

Source: The post the issue around satellite spectrum allocation in India has been created, based on the article “Satellite spectrum, a high stakes game” published in “Indian Express” on 19th October 2024

UPSC Syllabus Topic: GS Paper 3– Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

Context: The article discusses the debate over how satellite communication spectrum should be allocated in India. While some favor auctioning it, others, including the government, support administrative allocation, which aligns with global practices. The issue of spectrum charges remains unresolved.

For detailed information on Telecom Sector and Spectrum Auctions in India read this article here

What is the issue around satellite spectrum allocation?

1. There is a debate in India over how satellite communication spectrum should be allocated.
2. Some companies, like Reliance Jio, support auctioning the spectrum.
3. Others, like Starlink and OneWeb, prefer administrative allocation, as satellite spectrum is internationally regulated by the ITU (International Telecommunications Union) and does not have national territorial limits.

What is the government’s position?

1. Jyotiraditya Scindia, the Minister of Communications, has clarified that the government will administratively allocate the spectrum for satellite communication.
2. This follows global practices and aligns with The Telecommunications Act 2023.
3. The Act permits spectrum allocation by administrative processes for services listed in the First Schedule, including satellite-based services.

What are the concerns about spectrum charges?

1. There are ongoing discussions about how companies should pay for the satellite spectrum.
2. One option is to link spectrum charges to a company’s Adjusted Gross Revenue (AGR).
3. Another proposal suggests an upfront fee to ensure only serious companies enter the market.

What is the market potential for satellite broadband in India?

India’s satellite broadband service market is expected to grow significantly. Deloitte predicts the market will reach $1.9 billion by 2030. The goal is to create a competitive and vibrant industry without making it too difficult for new players to enter.

Question for practice:

Examine the debate over satellite communication spectrum allocation in India and the different perspectives of companies and the government on this issue.