Spectrum Licence Clearance Paves Way for Starlink, Jio, and OneWeb; Pricing Decision Nears

India Grants Satellite Communication Licences to Starlink, Jio and OneWeb

Key Highlights:

• India has granted satellite communication licences to Starlink, Jio, and OneWeb.
• The move is part of a sharper policy push to make satellite broadband a core pillar of universal connectivity.
• The government will finalise satellite spectrum pricing by synthesising recommendations from the Telecom Regulatory Authority of India (TRAI).

Government's Strategy:

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The government's aim is to ensure every citizen has access to a full bouquet of services. With the issuance of three licences and provision of normative spectrum assignments to Starlink, Jio, and OneWeb, the next policy call is the price of spectrum. The government plans to synthesise the recommendations from TRAI to determine the spectrum price.

India's Technological Advancements:

India is moving from catching up to shaping the rules in the technology narrative. With the acceptance of its proposal of 'ubiquitous connectivity' as part of 6G standard-setting work, India will for the first time play a standard-setting role. The country has 120 crore telecom customers, with around 40 crore already on 5G, and expects 100 crore to be on 5G by 2030.

Telecom Industry:

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The telecom industry is no longer a luxury but a necessity, with networks forming the carriageway on which commerce, communication, and livelihoods run. The government has a 'firewall' in place against negative externalities, including cyber fraud and "digital arrest" scams. SIM binding regulations remain in force, and the government hopes that all service providers will come on board.

Tariffs and Spectrum Auction:

Prices are set by operators, not the government, and high volumes have enabled India's low-cost telecom model. Voice rates have fallen from about 50 paise a minute around 12 years ago to roughly 0.03 paise per minute today. The next spectrum auction will be shaped by an assessment of demand and market appetite.