Spectrum allocation

Spectrum allocation

Sub: Eco

Sec: External sector

Context: GOI has clarified that spectrum for satellite communication (satcom) would be allocated “administratively”, rather than through an auction of airwaves, which was proposed by Reliance Jio earlier this month.

Auction vs allocation

• It is important to understand the key difference between spectrum for terrestrial networks and satellite communication, and why the distinction between allocation and auctioning arises in the first place.
• For terrestrial mobile services, spectrum is exclusive and is managed only by a single mobile operator in a given geographical area; therefore, this cannot be shared between or amongst operators.
• In the case of satellites, the same spectrum is non-exclusive in nature — and can be used by multiple satellite operators to serve the same geographical area.
• The general trend, therefore, is to allocate satellite spectrum administratively.

Why administrative allocation?

• Given the nature of satellite spectrum, it is not feasible for any one country to auction it. Unlike terrestrial spectrum, which is used for mobile communication, satellite spectrum has no national territorial limits. Due to this international character, satellite spectrum is coordinated and managed by the International Telecommunication Union (ITU), a specialised agency of the United Nations (UN).
• Spectrum for satcom is part of the first schedule of The Telecommunications Act, 2023 (“Assignment of spectrum through administrative process”). Under Section 4(4) of the Act, telecom spectrum shall be assigned through auction “except for entries listed in the First Schedule for which assignment shall be done by administrative process”.
• “Administrative process” under the Act “means assignment of spectrum without holding an auction”, and “‘auction’ means a bid process for assignment of spectrum”.

Size of satcom sector

• Consulting firm KPMG in India has estimated in a recent report that the country’s satcom sector, which currently stands at $2.3 billion a year, will reach $20 billion by 2028.
• India is ranked fourth in terms of investments in the sector globally. Investment bank Morgan Stanley has estimated roughly 290.4 million households in India are untapped with broadband, which present a strong market opportunity for satellite operators.

Satcom & its benefits

• Satcom services use an array of satellites in orbit to provide connectivity on the ground thus they do not require wires to transmit data.
• For end-users such as homes and businesses, satellite-based communication and broadband services offer two key benefits: wider coverage, and a more resilient network. Even though the latency of satcom services can at times be higher than terrestrial broadband networks, they can cover vast areas without needing to install much physical equipment.
• The use of satellites allows communication networks to reach remote locations that mobile telephony cannot access. It is generally understood that when satcom services become more mainstream, low-lying and rural areas, and areas prone to natural disasters, will benefit from constant connectivity.