The Department of Telecommunications (DoT) has given permissions to Bharti-backed Oneweb and Reliance Jio’s satellite arm to do live demonstrations during an industry event, which will give consumers first-hand experience around satcom services.
The two companies, which are holders of global mobile personal communication by satellite services (GMPCS) licenses, have also applied to the DoT to get test spectrum for doing trials on a wider scale for satcom services. The test spectrum is usually granted for a period of 90 days, but the timeframe gets extended if required.
Queries sent to Oneweb and Jio Satellite Communications remained unanswered at the time of going to press.
“We are analysing the applications for test spectrum from Jio Satellite and Oneweb,” said an official on condition of anonymity. Another official said the government is likely to give test spectrum to the companies as satcom has immense potential and India wants a leadership role in the segment.
The satellite communications market in India is at a nascent stage but the potential is substantial, particularly in rural and remote areas. As per an EY-ISpA report, India’s space economy is set to rise to $13 billion by 2025, growing at a CAGR of 6%.“With test spectrum, the companies can check their networks as there is still no clarity around spectrum allocation for satcom,” said an executive with one of the telecom companies.The Telecom Regulatory Authority of India (Trai) is working on finalising its recommendations on satcom spectrum allocation. Officials feel that once a new chairman assumes charge at Trai, the recommendations would be sent to DoT.
PD Vaghela retired as Trai chairman on September 30.
Officials told ET that though Trai has finalised auction models for satcom spectrum allocation, it is not yet clear if the regulator will recommend an auction mechanism. Administrative allocation also remains an option and the recommendations will be finalised after analysing the issue thoroughly.
Trai’s decision on satcom spectrum allocation would come amidst an ongoing slugfest between Reliance Jio and satcom firms. While Jio has been pitching for auction of satellite spectrum, Oneweb along with other satcom companies, want it through administrative route.
In its various submissions to government and Trai, Jio has termed satellites as base tower stations (BTSs) in the sky and highlighted about the principle of same-service-same-rules. Vodafone Idea too has been echoing Jio’s views.
The two sides have shared legal opinions with the authorities while pressing their demands. For instance, Jio has shared opinions from two former Supreme Court judges to support its demand of auction, satcom firms through Broadband India Forum had shared former attorney general Mukul Rohatgi’s views, who said auction isn’t the most appropriate and efficient method of resource allocation.
Experts believe that currently satcom services complement telecom services and can help to reach out to far-flung areas to provide connectivity but in future, they can compete as well.
