The near entry of Elon Musk’s Starlink into India’s satellite internet space has triggered a vicious war regarding spectrum allocation policies. Indian telecom majors Reliance Jio and Bharti Airtel push the government for balanced spectrum pricing to avoid market distortions. The controversy has been fuelled as the government is determined to allocate satellite spectrum administratively sans auctions, an action justified by Telecom Minister Jyotiraditya Scindia.
The Spectrum Controversy
At the heart of the debate is the difference in spectrum allocation methods for terrestrial and satellite networks. Under the telecom law enacted in December 2023, satellite spectrum can be assigned administratively for a fee, whereas terrestrial spectrum is auctioned. Jio and Airtel argue that this disparity could unfairly benefit satellite operators like Starlink, undermining fair competition .
In response to the criticism, Telecom Minister Jyotiraditya Scindia defended the administrative allocation, stating, “As far as terrestrial networks are concerned, you can allocate frequencies exclusively, which can’t be used by others… but satellite spectrum is shared. How do you auction something that’s shared? You can’t.” His remarks highlight the inherent technical and regulatory challenges of auctioning shared satellite spectrum .
The telecom giants, however, insist that commercial satellite operators should not benefit from preferential pricing and should pay spectrum fees comparable to terrestrial operators. The Telecom Regulatory Authority of India (TRAI) is still reviewing the pricing model, with local operators advocating for auctions to maximize government revenue and ensure a level playing field .
Starlink’s Strategic Entry
Starlink, which is set to become India’s third satellite-based internet provider, is set to use its low-Earth orbit (LEO) satellites to provide high-speed internet, especially for rural and unconnected communities. The service that offers up to 50 Mbps to 150 Mbps speed is set to plug the holes that conventional infrastructure has left open. Starlink’s intended pricing varies from ₹7,500 to ₹15,000 for one-time setup and ₹2,000 to ₹3,000 for recurring subscriptions, which, though more expensive than local broadband services, provides unparalleled access to remote locations.
Security and Data Concerns
The Home Ministry is still to clear Starlink’s satcom licence on data sovereignty and security. The government has insisted that all data from Starlink’s satellites should end within India to be compliant with national security procedures. This bureaucratic logjam provides another aspect of complication to Starlink’s entry strategy.
Potential Impact on the Market
If permitted, Starlink’s arrival would spark a pricing war that would compel local telecom providers to update their plans and rates. Jio, Airtel, and Starlink’s respective pricing methods and market shares are shown in the chart below.
Internet Pricing in India
There is a chart below that shows the initial and monthly costs for Jio, Airtel, and Starlink services. This shows how these costs might affect Indian customers’ finances.
India’s Communication Landscape
The controversy surrounding spectrum allocation highlights the nuances of incorporating satellite internet into the telecommunications ecosystem in India. Scindia’s adamant position regarding administrative allocation creates a difficult problem for the government in balancing its revenue interests, competitive fairness, and security threats. The weeks ahead will reveal the fate of satellite internet in India and if the regulatory mechanism encourages healthy competition or tips the balance in satellite operators’ favor.
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