Elon Musk‘s Starlink and Jeff Bezos‘ Project Kuiper are advocating for a 1% spectrum charge and a 20-year license to provide satellite communication (satcom) services in India.

What Happened: Both companies have approached the Telecom Regulatory Authority of India (TRAI), seeking a decrease in spectrum charges to 1% of annual revenues, as reported by The Hindu BusinessLine. The international firms reportedly see reduced spectrum charges as a pathway for cost-effective satellite services to Indian consumers and businesses, especially those in underserved areas.

Starlink further argued that the Satcom spectrum, being a shared resource, should not be valued at market rates as it would pose entry barriers for new entrants. This follows the Indian government’s decision not to auction the spectrum for satellite services, a move that both Starlink and Amazon have applauded.

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However, this decision has faced resistance from telecom operators like Reliance Jio, which contends that the non-auctioning of the spectrum contradicts constitutional principles and could be perceived as discriminatory. Airtel, on the other hand, has proposed a compromise, suggesting different pricing for satellite services based on their end-use.

The government has hinted that it will consider maintaining a level playing field in terms of spectrum pricing, marking the next phase in this ongoing discussion.

The push for lower spectrum charges by Starlink and Project Kuiper is a significant development in the Indian satcom market. The outcome of this debate could have far-reaching implications for the cost and accessibility of satellite services in India, particularly for underserved communities.

Further, the government’s response will be closely watched as it could set a precedent for future spectrum pricing policies and the overall competitiveness of the Indian satcom market.

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