The Telecom Regulatory Authority of India (TRAI) is reportedly planning to recommend a shorter timeframe – five years – for the allocation of satellite broadband spectrum, a move that may challenge Elon Musk's Starlink, which has been advocating for a 20-year permit.
Reuters, citing a senior official, reports that the telecom regulator is drafting key recommendations for the government on satellite spectrum allocation, including its duration and pricing.
As per the government source, TRAI plans to favour a shorter license timeframe “of around 5 years and then see how the sector grows”, explaining that “this will help understand how the market stabilises, so there's no point going beyond five years.”
The government source also indicated that TRAI is expected to take approximately a month to finalise its recommendations on the license timeframe.
Airtel, Jio back shorter license period for satellite internet connectivity
While Starlink has urged the government to grant a 20-year spectrum allocation, citing the need for “affordable pricing and longer-term business plans,” Jio has sought a shorter three-year period, with the intention of India reassessing the market after that time. Airtel has also supported a shorter license period, advocating for a 3-5 year timeframe
Citing an industry source familiar with licensing processes, the report said that a shorter timeframe will allow India the flexibility to revise spectrum prices as the satellite broadband market evolves.
Elon Musk’s Starlink partners with Airtel, Jio for satellite connectivity
This development comes shortly after both Airtel and Jio struck a partnership with Elon Musk’s Starlink to provide high-speed internet services.
This partnership marks a shift from their previous positions, as both Jio and Airtel previously advocated an auction of the spectrum rather than the administrative allocation favoured by Musk, who argued that spectrum allocation aligns with international standards.