Satellite Spectrum Raises Moot Question: To Auction or Not to Auction
Satellite services are just around the corner and hold great potential in the Indian context. With the advent of high-throughput satellites with low latency, satellites are capable of working on real-time applications and can provide effective backhaul to the 5G coverage. However, the industry remains divided on how the spectrums should be allocated. With the government considering satellite spectrum auctions, many industry players are of the opinion that auctioning spectrum is not the right approach to adopt. Recently, Bharti Enterprises chairman Sunil Mittal said that spectrum auction did not make sense in the case of satellite services. It can’t be auctioned on the lines of its recent sale for 5G services. Many other members of the space industry echoed similar sentiments and have urged the government to consider an administrative allocation of 28MhZ spectrum instead. The coveted 27.5 GHz to 28.5 GHz band, the only spectrum band which can be used by satellite services providers, was part of the 5G auction. However, industry members wrote to the Telecom Regulatory Authority of India (TRAI) to not auction the spectrum as many Indian startups were already working on developing satellites in the 28GHz spectrum. Why auctioning is an issue The space industry in India is heating up and many companies are already eyeing a share of the pie. Companies such as Sunil Mittal-owned Bharti group’s OneWeb, Amazon’s Project Kuiper, Telesat and Starlink could enter the Indian market at some point in time. Undoubtedly, spectrum auctions have worked for India. The Indian government has been assigning spectrum for terrestrial services for over a decade. Hence, it’s understandable why the government is considering an auction for the 28GHz spectrum band as well. However, the terrestrial spectrum is different from the satellite spectrum because of its higher frequency reuse capability. Disallowing the reuse and sharing of spectrum, by auctioning and giving to one entity will result in an acute worldwide shortage of frequencies. “There will be pressure to reduce spectrum availability for IMT services as each satellite will have to use a different set of frequencies,” Anil Prakash, director general at Satcom Industry Association (SIA) India, told AIM. Explaining further, he said that the process of spectrum auction allows one entity to use a set of frequencies to the exclusion of others for running a terrestrial communications service in a given geographic area. “In the case of satellites, however, a set of frequencies is used by many satellites that could be operated by the same or multiple entities for a geographic area.” In a virtual briefing, Mittal said, “This is not going to be used in every part of the country. This is going to be only in two landing stations at those specific points. World over, there has never been an auction for satellite spectrum. You can’t have 1,000 MHz at Rs 7,000 crore just to serve two 15-acre spots in the country.” Besides, auctioning satellite spectrum would also result in the creation of gatekeepers, meaning a few companies would control the industry and would block new entrants and hence kill competition. “Auctioning satellite spectrum and excluding multiple operators to use the same set of frequencies is not just an ineffective method but also constrains the communication capabilities of nations,” Prakash said. Administrative allocation Members of the space industry, including SIA, have urged the government to take the administrative route where the latter charges a fee to use the spectrum. If the government does take the administrative route, it would mean different operators could use the same frequencies across multiple satellites without interfering with each other. Further, it would also allow different players to enter the market at any given time. Taking the administrative route will eliminate the creation of gatekeepers, making the market competitive. Prakash said that the administrative route is preferred by other nations as well. In the US, the government has enacted the Orbit Act, which prohibits the auction of spectrum for satellite services. “Administratively allocating reusable and shareable satellite spectrum is followed by all the countries to benefit from the most efficient use of spectrum and creating communication capabilities for a nation,” Prakash said. The telcos think otherwise Interestingly telcos such as Reliance Jio and Vodafone Idea are in favour of satellite spectrum auctions. Earlier this year, Reliance Jio urged TRAI to discard the concerns raised by members of the space industry and go for the spectrum auction. Reliance Jio is of the view that satellite spectrum auction is gaining popularity. While Brazil has already gone ahead with the auction, nations such as Saudi Arabia, Mexico and Thailand are expected to follow suit. One reason for the telcos to push for auctions is that satellites can deliver ubiquitous coverage in a faster time frame. Even though the terrestrial operators have been allocated spectrum at the bare minimum reserve, they will take a few years to roll out the 5G networks, and even then it will not be ubiquitous coverage. Besides, they argue that satellite providers can get access to the spectrum by paying the administrative fee, which is significantly lower than an auction price. “The business compulsions of the terrestrial operators make them push for satellite spectrum and delay the launch of satellite-based communication services, depriving the nation and its citizens of the much-needed modern-day communication capabilities,” Prakash said. Since both routes come with their own set of pros and cons, it does put the government in a difficult position. Hence, it would be interesting to see what route the government takes.
Disallowing the reuse and sharing of spectrum, by auctioning and giving to one entity will result in an acute worldwide shortage of frequencies
Disallowing the reuse and sharing of spectrum, by auctioning and giving to one entity will result in an acute worldwide shortage of frequencies
[]
["Go", "programming_languages:R", "AI", "programming_languages:Go", "RAG", "Aim", "R", "startup"]
["AI", "Aim", "RAG", "R", "Go", "startup", "programming_languages:R", "programming_languages:Go"]
I have a keen interest in creative writing and artificial intelligence. As a journalist, I deep dive into the world of technology and analyse how it’s restructuring business models and reshaping society.