Indian Space Association, which represents the interests of players like L&T, Godrej, Tata Group and Bharti, has asked the telecom regulator to adopt differential pricing for satellite spectrum based on end-use. The industry body has warned against large players who can launch predatory pricing if spectrum is given cheaply.
“There are some Non-geostationary orbit (NGSO) satellite operators who are creating massive capacity and may offer predatory pricing to consumer segment in urban markets, which might have a negative impact on existing Satcom Eco-system. Therefore, in order to ensure the overall growth of the SatCom ecosystem and investments, it is crucial that such issues are adequately addressed while framing the policy and regulatory framework of spectrum pricing for SatCom. The Authority must keep vigil on large-capacity SatCom operators from resorting to predatory pricing,” the ISpA said in its comments to Trai’s consultation paper on the issue.
Traditionally, satellite-based communication systems are used to provide coverage to the remotest and most inaccessible areas of a geographically widespread country like India. They can also cater to strategic defence requirements and improve the disaster resilience of the country in addition to offering backhaul bandwidth to telecom operators. However, players including Elon Musk’s Starlink have built capabilities to offer broadband services directly to mobile phones and want to break into urban markets as well. This could disrupt traditional mobile operators’ business models.
“TRAI and the Government should price the satellite spectrum in a manner that addresses the concerns related to fair pricing. Additionally, the traditional use cases of satellite services for the traditional market i.e. in rural and remote areas and for Government agencies, including Defense, disaster recovery, enterprises, IFMC, cellular backhaul in rural and remote areas, etc., can be priced differently (say, no spectrum charge),” ISpA said.
