Government Confirms Satellite Broadband Spectrum Will Be Allocated Administratively, Not Auctioned

New Delhi: On Tuesday, the Indian government announced that spectrum for satellite broadband services will be allocated administratively rather than through an auction process. This decision follows comments by SpaceX CEO Elon Musk, who criticized the proposal for auctioning spectrum in India, calling it “unprecedented” compared to global practices.

During a press conference at the ‘India Mobile Congress 2024’, Telecom Minister Jyotiraditya Scindia clarified that spectrum for satellite services would be distributed via an administrative allocation model. “The Telecom Regulatory Authority of India (TRAI) has circulated a paper on this, and the regulatory authority is constitutionally empowered to set the administrative pricing,” said Scindia.

Minister Scindia further emphasized that the decision aligns with global standards. “Satellite communication (satcom) spectrum is shared and cannot be auctioned. The administrative allocation is a common international practice,” he explained. TRAI will be responsible for determining the costs associated with the allocation.

Elon Musk had earlier expressed concerns, noting that auctioning satellite broadband spectrum would be an unusual move. Musk’s Starlink, which provides affordable satellite internet services, is keen to enter the Indian market.

Airtel, one of India’s leading telecom operators, also weighed in on the debate. In a statement, the company reiterated its long-standing support for satellite communication services, particularly to extend high-speed connectivity to remote and underserved regions of the country. Airtel emphasized that satellite operators looking to provide services to urban and retail customers must comply with the regular licensing process, including obtaining spectrum and fulfilling associated obligations.