The telecom regulator has given stakeholders and counter-comments an additional week to submit their comments on its discussion paper regarding the terms and conditions of allocating satellite spectrum to companies looking to launch satellite broadband services in India, without holding auctions.

In response to stakeholder pleas for extra time, the Telecom Regulatory Authority of India (Trai) has now extended the deadlines for comments and counter-comments from October 18 to November 1, respectively.

In an effort to determine whether satellite spectrum should be priced per megahertz (or unit), as a proportion of a satellite player's adjusted gross revenue (AGR), or using a new formula, Trai had requested opinions in its discussion paper.

The Trai paper has gained significant importance, particularly in light of US billionaire Elon Musk's intention to use his constellation of low-Earth orbit (LEO) satellites, Starlink, to compete and provide internet services in India. This will likely lead to a fierce competition with Reliance Jio, owned by Mukesh Ambani, and Bharti Airtel, led by Sunil Mittal.

The largest telecom provider in India, Jio, recently wrote to the government requesting that satellite spectrum be auctioned and that Trai's most recent consultation paper be reissued since it believes the study fails to address concerns about creating an equal playing field for telecom and satellite providers. However, Jyotiraditya Scindia, the minister of communications, recently stated at IMC-2024 that satellite spectrum would be distributed administratively, but at a price that would be set by the telecom regulator.

As a result, a high-stakes verbal duel over the distribution of spectrum to enable broadband-from-space services is taking place in the lead-up to Trai's recommendations to the DoT.

Large satcom operators like Starlink, owned by Elon Musk, and Amazon Kuiper, owned by Jeff Bezos, have been pushing for cheaper spectrum costs in India. The US major has warned that high-priced airwaves will drive international businesses to target consumers in India's urban areas rather than only its distant ones. However, any such attempt to serve urban people would put them squarely in the direct competition with Jio and Airtel, the telcos in India.

Emphasizing its position that satellite spectrum is a shared resource and cannot be auctioned has also helped Starlink stand against Reliance Jio, the largest telco in India. In the event that satellite communications are provided to any location—aside from rural areas—Bharti Airtel has also submitted a bid for a spectrum auction.