On May 9, TRAI recommended that satellite communication (Satcom) operators be assigned spectrum administratively (meaning without an auction) for five years, extendable by another two.
Leading Indian telecom companies have voiced strong concerns to the Department of Telecommunications (DoT) regarding recent recommendations on assigning spectrum for satellite-based services.
They argue that these recommendations are based on flawed assumptions and, if implemented, could jeopardise the viability of current terrestrial services — internet and mobile services delivered via ground-based networks like cell towers and fiber optic cables — which form the backbone of India’s digital infrastructure.
The Cellular Operators Association of India (COAI), representing major telcos such as Bharti Airtel, Reliance Jio and Vodafone Idea, has written to DoT Secretary Neeraj Mittal. The COAI asserts that the recommendations from the Telecom Regulatory Authority of India (TRAI), issued on May 9, fail to ensure a level playing field and competitive fairness between satellite and terrestrial service providers when it comes to spectrum assignment (how access to these radio frequencies is granted and managed).
Panel sought
To address these concerns, the telecom companies have urged the DoT to establish a committee for a thorough review of TRAI’s recommendations. They emphasise the need for this review to be guided by principles of fairness, transparency, and equity, and to provide an opportunity for telecom service providers (TSPs) – the companies that offer telecommunication services to consumers – to share their perspectives.
“Therefore, we request DoT to specifically ask TRAI to consider the principle of level playing field and to develop a framework with applicable spectrum charges that ensures level playing field with terrestrial operators,” sources quoted from the May 29 letter.
The letter also highlights that TRAI’s recommendations disregarded detailed submissions made by COAI and various terrestrial broadband service providers during the consultation process. “The recommendations do not appear to address the most fundamental and contentious issue – the lack of a level playing field between terrestrial service providers and satellite operators serving the same market,” said SP Kochhar, Director General, COAI.
TRAI’s recommendations
On May 9, TRAI recommended that satellite communication (Satcom) operators be assigned spectrum administratively (meaning without an auction) for five years, extendable by another two. TRAI also suggested a charge of 4 percent of their Adjusted Gross Revenue (AGR) – a specific calculation of revenue used for calculating government dues from telecom operators – for these satellite operators. Companies like Elon Musk’s Starlink, Bharti Enterprises-backed OneWeb, and Jio-SES are awaiting policy clarity to launch their satellite-based services in India.
However, COAI’s letter contends that these recommendations lack transparency and are based on “non-justifiable assumptions” rather than solid data. The industry body criticised the “limited consideration of stakeholder inputs” and the absence of comprehensive consultation on critical issues. These issues include how to ensure a level playing field, evaluate network capacity, determine methods for spectrum assignment, and establish a fair valuation for the spectrum. COAI believes that the reliance on “flawed assumptions” has led to recommendations that are not only unfair but may also contradict the principles of the Telecommunications Act, 2023.
Published on June 1, 2025
