New Delhi: India’s two largest telecom operators, Reliance Jio and Bharti Airtel, have voiced strong objections to a proposed policy by the Telecom Regulatory Authority of India (TRAI) that recommends satellite communication providers pay just 4% of their annual revenue as a license fee. The operators, through their industry body, the Cellular Operators Association of India (COAI), have argued that such a policy could distort competition and provide an undue advantage to global players like Elon Musk’s Starlink.
According to COAI’s letter to the Department of Telecommunications (DoT) dated May 29, the telecom industry is alarmed by what it sees as an inequitable fee structure. Terrestrial telecom providers in India, such as Jio and Airtel, currently pay up to 21% of their revenue in spectrum usage charges and other levies after spending billions through competitive auctions. In contrast, satellite operators would only pay a nominal administrative fee under TRAI’s new recommendation.
“This pricing model is inherently discriminatory,” the COAI argued, noting that both satellite and terrestrial networks are now targeting the same end consumers, especially in rural and underserved regions.
Although Starlink has not been named directly in the COAI communication, the policy implications are clearly linked to the American satellite internet provider. Starlink, operated by Elon Musk’s SpaceX, has lobbied for administrative allocation of satellite spectrum globally, arguing that satellite frequencies—being a shared and finite natural resource—should not be auctioned in the same way terrestrial spectrum is.
Starlink is preparing to roll out services in India and could benefit significantly from TRAI’s proposed low-fee regime. The company’s satellite network aims to offer high-speed internet to remote and rural parts of India where fiber and mobile connectivity are sparse—precisely the demographic that Indian telcos have also been working hard to reach.
Interestingly, both Jio and Airtel have existing commercial partnerships with Starlink for infrastructure and equipment distribution. However, they remain direct competitors when it comes to providing internet services to the masses.
A senior official in the communications ministry confirmed that the matter is under active review and that similar concerns had been raised in earlier stakeholder consultations. The official emphasized that no final decision has been made and that the ministry is weighing all viewpoints, including the need for investment in infrastructure and maintaining fair market dynamics.
The issue is not just about pricing—it touches on a broader debate about how emerging technologies like Low Earth Orbit (LEO) satellites should be regulated. On one hand, proponents of administrative allocation say it encourages innovation and quicker rollout of connectivity solutions. On the other, established telecom operators argue that auction-based models reflect market value and prevent monopolization.
TRAI’s recommendation could set a precedent not just for India, but for other countries looking to regulate the booming satellite internet industry. With global tech players entering the Indian market and domestic telcos investing heavily in 5G and fiber infrastructure, the final policy decision will have far-reaching implications for the future of digital connectivity in India.
The standoff highlights growing tension between legacy telecom models and the fast-emerging satellite communication sector. As India seeks to expand digital access to its most remote regions, it must also decide how to balance innovation with fairness, and ensure that no technology is allowed to thrive at the expense of another.
The government’s decision on this issue—expected in the coming months—will be watched closely by both domestic players and international giants like Starlink, Amazon’s Project Kuiper, and OneWeb, all of whom are eyeing India’s vast and largely untapped internet market.
Source: News Agencies