AUCTION OR ALLOCATE SPECTRUM: ANOTHER 2G SCAM IN THE MAKING?

(By: Nandika Rohith)

The Telecommunications Regulatory of India (TRAI) released a Consultation Paper on 6th April 2023 that deals with the assignment of Spectrum for Space-Based Communication. The effective allocation and assignment of spectrum for such communication is pivotal in establishing efficient utilization, avoiding interference and ensuring affordable access for all. 

In an increasingly interconnected world, the demand for reliable, high-speed communication transcends geographical boundaries. Space-based communication has emerged as a critical solution, offering global coverage and connectivity.

Spectrum is the range of frequencies used for transmitting data wirelessly and is a finite resource. In the realm of space-based communication, efficient spectrum assignment is imperative for a multitude of reasons that range from global connectivity to scientific exploration. The process begins with meticulous frequency planning and coordination to identify suitable bands for satellite communication, aligning with international agreements. The allocation involves licensing via auctions or direct assignment to satellite operators, ensuring efficient spectrum use. Compliance with regulatory standards, including technical specifications and quality of service, is mandatory. 

India actively engages in international forums like the  International Telecommunication Union (ITU) to harmonize spectrum use globally, preventing interference with neighbouring countries' systems. Periodic reviews of the regulatory framework allow for adaptations to technological advancements and evolving demands, ensuring the provision of reliable and effective satellite communication services while aligning with international standards and regulations.

The debate stands between auctioning or allocating satellite spectrum. Satellite spectrum allocation is the process of assigning radio frequency bands to satellite communication services. It involves identifying specific frequencies within the spectrum, licensing them to satellite operators, and ensuring compliance with technical standards and international agreements. This allocation aims to prevent interference between different satellite systems and guarantee efficient utilization of the assigned spectrum. International coordination, guided by organizations like the (ITU), plays a pivotal role in harmonising spectrum use globally. 

Effective allocation ensures reliable satellite communication while maintaining adherence to regulatory guidelines and preventing disruptions across borders. Whereas auctioning satellite spectrum involves offering specific radio frequency bands for satellite communication via competitive bidding. Regulatory bodies or governments announce available bands, inviting bids from interested parties. The highest bidder or bidders secure access to these frequencies, obtaining licenses for satellite communication services. This process encourages competition, and revenue generation for governing bodies, and ensures efficient spectrum allocation while adhering to regulatory standards, enhancing fair access, and maximizing the economic potential of the allocated frequencies.

However, there is considerable opposition voiced by Indian space startups against the auctioning of satellite spectrum. These startups argue that auctioning satellite spectrum could impede innovation and growth within the Indian space sector. They emphasize that such auctions could disproportionately favour established players and larger corporations due to their financial capabilities, hindering the entry and expansion of smaller, innovative startups.

Moreover, these startups advocate for an alternative approach, suggesting a transparent and equitable allocation of satellite spectrum that promotes fair access for all participants. They highlight the importance of nurturing an ecosystem that encourages diverse participation, innovation, and technological advancements within the space industry. The startups propose a model where spectrum allocation considers developmental objectives, supporting new entrants and fostering competition while balancing revenue generation for the government.

They also stress the need for regulatory policies that foster a conducive environment for space entrepreneurship, aligning with global practices that encourage innovation and competitiveness while ensuring fair access to spectrum resources. Ultimately, the startups emphasize the significance of balancing revenue goals with the promotion of a vibrant and inclusive space startup ecosystem in India.

Established companies like Jio Satellite Communications, a part of Reliance Jio, recommend otherwise. They are advocating for flexible spectrum assignment allowing use for either terrestrial or satellite networks. This proposal aligns with technological advancements enabling integrated networks. Referring to New Zealand's decision to use 24-30 GHz spectrum for both satellite and mobile services, Jio urges TRAI to consider flexible spectrum allocation. Jio advocates satellite spectrum auctions, contrary to others preferring administrative allocation. Presenting legal opinions favouring auctions, Jio highlights the spectrum's finite nature, crucial for wireless connectivity in Digital India. Emphasizing optimal and evolving technology-driven spectrum assignment, Jio cautions against fragmented allocations hindering efficient resource use and denying consumers seamless services via converged networks. This proposal aims to leverage the spectrum efficiently, catering to evolving communication needs while ensuring consumer benefits and technological advancement. 

Decision-making bodies in this debate like DoT and INSPACe have previously shown support for administrative allocation of satellite spectrum. It is important to note the difference between terrestrial and satellite spectrum and ensure another “2G Scam” doesn’t repeat itself.

This debate underscores the delicate balance between revenue generation, fostering innovation, and ensuring fair access to spectrum resources. The need for a regulatory framework that promotes inclusivity, encourages innovation, and aligns with global practices remains crucial. Ultimately, the spectrum assignment methodology adopted will significantly impact India's digital evolution, necessitating a careful balance between commercial viability and fostering a vibrant, innovative space industry landscape.