Reliance Jio, Airtel seek ‘fair competition’ as govt weighs Starlink’s satcom licence

Reliance Jio and Airtel have urged the government to ensure a level playing field in the satellite communications sector as it prepares to decide on a licence and spectrum allocation for Elon Musk’s Starlink, ToI reported. The companies have called for “comparable” spectrum pricing for satellite operators to prevent what they term as “market distortions.”

In a petition to the government, the telecom firms have accused the Telecom Regulatory Authority of India (Trai) of not addressing the competitive imbalance between satellite and terrestrial spectrum allocation. “Comparable spectrum pricing to terrestrial services should be enforced for competing satellite services in urban/semi-urban/rural areas for retail/enterprise customers,” the representation said. It argues that satellite operators providing similar services must comply with the same pricing, regulatory levies, and fees as terrestrial telecom providers.

The new telecom law passed in December 2023 allows satellite spectrum to be assigned administratively for a fee, unlike terrestrial spectrum, which is auctioned. However, the specifics of pricing and allocation are still being worked out by Trai.

Jio and Airtel have raised concerns over low-earth orbit (LEO) mega-constellations, arguing that their broadband speeds and capacity are comparable to those of terrestrial networks. “Given the oversupply of broadband capacity that these entities are bringing to market, they will distort competition of terrestrial broadband, especially in urban/semi-urban areas