Indian telecom leaders Reliance Jio and Bharti Airtel are pushing back against the telecom regulator’s proposed satellite spectrum policy. Their industry group warns that the current pricing model could unfairly benefit satellite internet providers such as Starlink, undermining existing telecom investments.
Regulator Proposes 4 Percent Revenue Share for Satellite Providers
In May, India’s telecom regulator suggested that satellite service providers pay 4% of their annual revenue to offer services in the country. This model, if implemented, would eliminate high upfront auction fees that traditional telecom players must pay. Starlink supports this approach, arguing that satellite spectrum should be licensed, not auctioned.
Telcos Say Model Creates Unfair Advantage
The Cellular Operators Association of India, in a letter dated May 29, urged the telecom ministry to review the proposed pricing. They argue that auctioning spectrum to telcos results in spectrum costs that are roughly 21% higher compared to satellite providers. The letter stressed that pricing should be equivalent if both technologies serve the same customers.
Massive Investments at Risk
Telecom companies like Reliance Jio have collectively invested close to $20 billion for 5G spectrum rights in recent auctions. Industry insiders believe that letting satellite players enter the market under cheaper licensing terms could disrupt the competitive balance and impact the returns on these large investments.
Starlink Close to Gaining India Entry
While the government has yet to decide on spectrum pricing, Starlink’s licensing process is reportedly near completion. Telecom minister Jyotiraditya Scindia confirmed that Starlink may soon begin operations in India. The final decision will need to carefully weigh the interests of both satellite and traditional telecom players.
This ongoing debate may shape the future of digital connectivity in India, with both terrestrial and satellite networks aiming to deliver fast, reliable internet access to millions.Tools
