By Shishir Priyadarshi

Every regulator has probably faced this question at some point: are short-term financial accruals more important or long-term equity and balanced growth? The telecom regulator must have faced it while considering the modalities of spectrum allocation for extraterrestrial users in India.

In India, the government has historically approached spectrum allocation through a mixture of competitive auctioning and administrative means, especially when it comes to frequencies for satellite communications. The process is significant, considering the rapid advancements in satellite technology and the growing demand for bandwidth from diverse sectors. The recent focus on administrative allocation for satellite-based services, and the reactions, highlight the complexities involved in managing this limited resource.

The Telecom Act, 2023, which in a way replaces both the Indian Telegraph Act of 1885 and the Indian Wireless Telegraphy Act, 1933, provided that spectrum for extraterrestrial users would be allocated administratively and not by auction. It was in this context that the Telecom Regulatory Authority of India (Trai) was tasked with determining the terms and conditions of allocation, for which it instituted a consultative process.

This signified not just a shift in policy, but an evolutionary leap towards embracing advanced technologies like satellite communication and high-altitude platform systems. As we stand on the brink of a new era in telecommunications, it is important to recognise why this decision is timely and essential for India’s future in a competitive global landscape.

Spectrum allocation has traditionally followed a market-driven model, where companies bid for frequencies, often leading to monopolistic scenarios and price wars that harm innovation. However, the administrative allocation model offers a more strategic and cohesive method of managing a finite and critical resource. By assigning spectrum to non-terrestrial users administratively, the government is empowering entities that aim to enhance connectivity, particularly in remote and underserved regions, thereby promoting inclusivity and technological advancement across the nation.

Countries such as the US and the UK offer prime examples of successful administrative spectrum allocations for non-terrestrial uses. The Federal Communications Commission in the US has prioritised spectrum for satellite companies, facilitating operations for firms such as SpaceX’s Starlink which aims to provide broadband services globally. In the UK, Ofcom has announced similar initiatives, promoting the development of non-terrestrial networks through an administrative process that supports innovations like low-earth orbit satellite systems. These frameworks have not only accelerated the deployment of advanced technologies but also ensured that spectrum allocation aligns with objectives like improved connectivity and economic growth.

The implications for India’s telecommunication landscape are profound. With a vast territory that includes remote villages and hilly terrains, traditional terrestrial networks often struggle to provide uninterrupted services. The ability to leverage non-terrestrial systems can dramatically enhance connectivity, providing millions of marginalised people with internet access. This is especially significant in rural areas where education, healthcare, and digital services remain scarce. Administrative allocation allows the government to strategically position spectrum resources to organisations that can efficiently deliver these services, ensuring that the benefits of technology reach every corner of the country.

Recent debates have emerged around this move, with some service providers arguing that such administrative allocation could stifle competition and innovation by sidelining terrestrial operators, whereas allocation by auction promotes competitive bidding, establishes market value, and brings more revenue to the government. However, this perspective overlooks several fundamental benefits of administrative allocation, particularly in the context of extraterrestrial spectrum users. This perception underestimates the competitive advantages of diversifying connectivity methods. Spectrum allocation to non-terrestrial users does not impede terrestrial operators; rather, it opens new avenues for collaboration and competition that could lead to innovative hybrid solutions enhancing service delivery.

The administrative approach allows for more cohesive long-term planning. Governments can consider the broader spectrum management framework, accommodating changes in technology and market needs over time. This strategic foresight is essential in fields like satellite communication, where technology evolves rapidly. The government has national goals like Digital India, which aims to expand access to digital services and infrastructure. Administering spectrum allocation allows the government to align spectrum usage with this overarching policy goal more effectively than a purely market-driven auction system would allow. It is also pertinent to note that we are talking of “shared spectrum”. By tilting the plane of the satellite, the spectrum can be used by different service providers. Auctioning a shared spectrum is practically not possible, which is why Governments worldwide have resorted to its administrative allocation.

An administratively managed spectrum allocation, duly regulated by terms and conditions specified by Trai, is capable of promoting a flourishing telecom ecosystem, ensuring that tech advancements reach all sections. As the demand for satellite communication and related services grows, it is imperative to pursue policies that guarantee advanced connectivity while safeguarding the interests of the public and the nation.

India’s decision to adopt administrative spectrum allocation reflects a growing global trend toward embracing non-terrestrial solutions—an acknow- ledgment that the future of connectivity lies beyond the constraints of traditional terrestrial infrastructure. By aligning with global practices, India can reap the benefits of a more integrated and inclusive digital landscape. This decision represents a proactive step toward not only enhancing technological capabilities but also sets the stage for a transformation in how connectivity can be delivered across India. The future is here, and it is non-terrestrial; India must embrace it fully.

The author is former director of WTO, Geneva, & president of Chintan Research Foundation.

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