[ad_1]
The Department of Telecommunications (DoT) is finalising the modalities around administrative allocation of satellite spectrum, which is likely to include clauses such as that airwaves will only be given to offer services through a fixed terminal, officials aware of the details ET.
“Terms and conditions in the license will make it clear that spectrum taken administratively can’t be used to serve retail mobile consumers,” an official said.
The DoT is expected to shortly write to the Telecom Regulatory Authority of India (Trai) to provide the details on what terms and conditions should be incorporated in the license.
“In case spectrum is administratively allocated to satcom players before finalisation of terms and conditions, the allocation would be “interim”, subject to final decision,” another official said.
The department believes that currently most of the satellite players offer fixed services through a satellite terminal as direct connectivity to mobile phones is not available.
But in the coming years, as technology evolves to allow satcom services to be offered directly to mobile handsets, akin to terrestrial services, the administratively allocated spectrum won’t be allowed to be utilised.
The move by DoT comes in the wake of technology innovations in the field of satcom. Last month, Elon Musk-owned Starlink had announced sending six satellites with direct to cell capability into space. It would allow for mobile phone connectivity anywhere on earth.
Telecom operators like Reliance Jio have been highlighting that going forward, satcom services will compete with terrestrial networks as both will be connecting mobile consumers. That was the reason why the telco was proposing auction as the mode of allocation for satellite spectrum. Experts, however, feel that it will take a few years before the technology matures.
Bharti Airtel, which has been supporting administrative allocation of satellite spectrum, too feels that in case the satcom services are used to serve retail customers, the rules should be different.
“If satellite spectrum becomes part of access spectrum, which means every mobile has a satellite chipset, then treat that separately,” Gopal Vittal, managing director of Bharti Airtel had told ET recently.
As per the Telecommunications Act notified recently spectrum for satellite services should be given administratively, or without auctions, to companies. The DoT is preparing to allocate spectrum to the eligible companies like Eutelsat OneWeb and Jio-SES combine. Starlink will also be eligible to get spectrum once a global mobile personal communication by satellite services (GMPCS) license if given to the company.
Companies are trying to launch services quickly to get a first-mover advantage. 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%.
“Airtel’s management indicated that given the robust organic cash flow generation, there is no need to issue further calls on pending rights issue money. Bharti is yet to call 75% of the rights issue (Rs 15,000 crore), which was initially expected to be completed by Sep-Oct 2024,” Kotak Institutional Equities said in a research note.
[ad_2]
Source link