India’s telecom regulator TRAI has taken an important decision regarding the satellite broadband spectrum. TRAI recommends that the satellite spectrum be allocated for only 5 years, so that the reaction of the initial market can be understood. The decision is against the proposal of Elon Musk’s company Starlink, in which it is demanding spectrum allocation for 20 years.
What is the whole matter?
In a report published on business standard, government sources have claimed that TRAI is currently preparing to send its recommendations to the central government regarding the time frames and pricing of satellite spectrum. TRAI recommends that the satellite spectrum be allocated for only 5 years, so that the reaction of the initial market can be understood. Apart from this, TRAI wants the spectrum to be allotted in an administrative manner, that is, direct allocation instead of auction.
Partnership from live
Meanwhile, Allen Musk and Indian Business Tycoon Mukesh Ambani recently have a partnership, under which Starlink devices will be sold in Ambani’s Reliance Stores. This will give Starlinks a large distribution access. However, there have also been differences between the two companies over the spectrum. Reliance had demanded the allotment of spectrum for only 3 years, while Starlink wants a 20 -year permit.
What do other companies say?
Bharti Airtel, another big telecom company in India, has also recommended the spectrum license for 3-5 years. Airtel has also signed a distribution deal with Starlink, as Reliance has done.
According to government sources, TRAI is going to accept the demand for spectrum allocation for 5 years, so that it can be understood how this sector grows. An official said, “This will help to understand the status of the market being stable, so there is no point in giving more than 5 years.”
What will be the benefit?
According to industry sources, a 5 -year short time frame will give the government an opportunity to revise the price of spectrum with the development of the market. It will take about a month to finalize the recommendations of TRAI, after which it will be sent to the Ministry of Telecom.
Musk and Ambani’s partnership
This partnership of Allen Musk and Mukesh Ambani has come to light when Indian Prime Minister Narendra Modi recently met Musk in Washington. In this meeting, both of them discussed issues like space, mobility, technology and innovation.
However, Ambani is worried that his telecom company, which has spent $ 19 billion in spectrum auction, may lose broadband customers due to starlinks. Data and voice customers can also be affected in future.
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