India’s telecom regulator, TRAI (Telecom Regulatory Authority of India), is preparing to recommend limiting satellite broadband spectrum allocations to five years, despite Elon Musk’s Starlink pushing for a 20-year permit. This proposed policy aims to evaluate initial market adoption and adjust accordingly, a senior government source revealed.
Currently, TRAI is working on key recommendations regarding satellite spectrum, including time frames and pricing, to be presented to the Indian government. The government’s stance goes against Musk’s request for longer-term spectrum allocations to secure affordable pricing and longer-term business plans.
This decision comes on the heels of a partnership between Musk’s Starlink and Indian billionaire Mukesh Ambani, which will allow Starlink devices to be sold in Reliance stores, significantly increasing distribution access. Reliance and Musk’s Starlink had been rivals, with Ambani’s telco subsidiary previously lobbying for an auctioned spectrum rather than the administrative allotment Musk seeks.
While Starlink advocates for a 20-year license to focus on affordability and long-term growth, Ambani’s Reliance proposed a 3-year license followed by a reassessment of the market. Similarly, Airtel, another Indian telecom company, has called for a 3-5 year license period.
TRAI is inclined to adopt the 5-year licensing period, giving the industry time to evaluate market stability and allowing for future revisions of spectrum prices. A government official explained that this approach would help assess the sector’s growth while enabling pricing adjustments after the initial period.
The final recommendations, including the license duration and spectrum pricing, are expected within a month. The proposals will be submitted to India’s telecoms ministry for further review and action. However, Starlink’s distribution agreements with Reliance and Airtel depend on the company’s ability to secure regulatory approvals in India.
Industry forecasts show that India’s satellite communications sector could see substantial growth, with KPMG predicting a more than 10-fold increase, potentially reaching $25 billion by 2028.