DoT set to finalise satellite spectrum rules; first-come-first-serve model likely

Department of telecommunications (DoT) is in the final leg of drafting new rules for allocating satellite spectrum, which will be administered under the Telecommunications Act. The draft is expected to be released soon for stakeholder feedback and the spectrum is anticipated to be shared on a first-come-first-served basis.India’s satellite broadband players, such as Eutelsat OneWeb and the Jio-SES joint venture, have already secured all necessary permissions and are awaiting final spectrum clearance to begin commercial services. Starlink, owned by Elon Musk’s SpaceX, was issued a letter of intent for a satcom licence earlier this month and will be given test spectrum soon to show its compliance with India’s security protocols.“The draft will be soon put out and final rules are expected to be notified in a couple of months,” a senior official told ET.The DoT is looking ahead for the prompt completion of the process, so that it can begin the services early. The department has already notified updated security conditions for satcom firms.Earlier, satellite spectrum was allocated administratively to operators such as those using VSAT (very small aperture terminal) as part of their licence. However, now the process will fall under a new authorisation regime, with fresh rules and procedures to be notified separately. The move followed recommendations by the telecom regulatory authority of India (TRAI), which proposed that satellite communication companies pay 4% of their adjusted gross revenue (AGR) for spectrum usage, which will be assigned for five years.TRAI’s pricing proposals will be reviewed by the digital communications commission (DCC) before being sent to the Cabinet.“Since satellite spectrum is a shared resource, first-come, first-serve policy won’t be a problem as the same spectrum can be utilised by late entrants. But the key issue will be around interference and how best it can be minimised,” said another official.India’s growing space economy is predicted to reach $44 billion by 2033, boosting its global share from 2% to 8%, according to space regulator IN-SPACe.