The Department of Telecommunications (DoT) plans to finalize the terms of reference (ToR) for the administrative allocation of spectrum for satellite broadband communications within a few weeks, as per a report. Last year’s Telecom Bill mandated spectrum allocation through this route, ending previous consultations by the Telecom Regulatory Authority of India (TRAI).
The updated ToR will address the methodology of allocation, frequency usage, spectrum pricing, and national security considerations for satellite operators. Unlike auctions, administrative allocation allows multiple operators to use the same spectrum band due to technical constraints of satellite coverage.
What is the issue?
There is a dispute over the 28GHz spectrum band in India between satellite communication firms and telcos/private service providers. Essentially, Satellite Communication (SATCOM) satellites run best on 28GHz band and hence, continued access to it is critical for their operation. Indian private service providers including Reliance Jio, Airtel and Vodafone Idea, were demanding the 28GHz spectrum be put up for sale in the forthcoming 5G auctions. They believe this particular band of spectrum will help them deliver 5G services economically. Now, the spectrum being a scarce resource, there were talks about sharing. Satellite firms like Eutelsat OneWeb and Reliance Jio’s satellite arm Jio Space Limited don’t want 50 per cent of the 28GHz spectrum allocated to telcos as it would impact their satellite services. Telcos like Reliance Jio, Airtel and Vodafone Idea want the 28GHz spectrum to be auctioned for 5G services, in order to deliver economical 5G.
So, you see, these terms of reference will be crucial in deciding whether we will or we won’t be seeing satellite based fast internet in the country anytime soon. Won’t it be best if we could just combine space and earth tech? It will be a win win. Maybe soon.
Ever wondered if there was a simple and effective way of identifying multibagger stocks in 2024. You can learn here
Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before investing in market-linked instruments.