Tech giants are butting heads with Indian telecommunications juggernauts Reliance Jio and Bharti Airtel over the allocation of spectrum for space-based communication.
The latest flare-up in this ongoing tussle has been triggered by a report jointly released by the Indian Council for Research on International Economic Relations (ICRIER) and the
Broadband India Forum (BIF). The report has reignited the debate on whether spectrum should be auctioned or administratively allocated.
At the core of the debate is how spectrum should be distributed for space-based communication, a realm with vast potential and significant implications for the telecommunications industry.
Jio and Vodafone Idea advocate for the auctioning model, emphasising its potential for revenue generation and competitive dynamics. On the other side, Airtel has been vocal in favour of administrative spectrum allocation, arguing for a more stable and predictable approach.
The ICRIER-BIF report, however, cautions against auctioning spectrum for space-based communication. The report suggests that this approach could potentially hinder the growth of India's satellite sector. It highlights concerns that inconsistent assignment mechanisms could discourage global satellite providers from entering the Indian market, leading to limited competition and possibly stifling innovation.
One noteworthy aspect of the debate is the affiliation of BIF members. The Broadband India Forum counts Amazon,
Google, Meta, and Netflix among its members. These tech giants have a vested interest in the auction model, leading to discussions about potential conflicts of interest and the extent to which policy recommendations align with corporate goals.
The report urges a balanced approach, emphasising the need to learn from international practices in spectrum allocation. It cites administrative allocation mechanisms employed in other global markets for space-based communication spectrum, suggesting that stability and long-term planning are crucial for fostering a thriving satellite ecosystem.
First Published: Aug 22, 2023 5:41 PM IST