India’s top telecom operators, Reliance Jio and Bharti Airtel, have raised concerns over the country’s proposed pricing for satellite spectrum, warning that undervaluing it could hurt their businesses and unfairly benefit satellite internet firms like Elon Musk’s Starlink.
According to a Reuters report, the Cellular Operators Association of India (COAI), which represents major telecom players, wrote to the telecom ministry on May 29 urging a review of the current proposals. The group argues that traditional telecom operators pay significantly more for spectrum, primarily through auctions, compared to the lower administrative fees suggested for satellite service providers.
India’s telecom regulator had proposed that satellite companies pay 4% of their annual revenue to the government. Starlink has reportedly lobbied for this approach, aligning with a global trend that treats spectrum as a shared natural resource, rather than auctioning it.
“Price per MHz should be equivalent or at least comparable for both, especially when used to reach the same consumers for identical services,” the COAI letter said, as cited by Reuters. It also noted that satellite internet could become a competitive and affordable alternative to terrestrial broadband.
Neither Reliance nor Airtel responded to Reuters’ request for comment, while Starlink was not immediately available.
A senior government official told Reuters that the telecom ministry is still reviewing the recommendations from the regulator, adding that such industry feedback is not new.
One source familiar with the matter told Reuters that companies like Reliance Jio are particularly concerned about the financial imbalance, as they are investing in similar broadband services but face much higher costs.
Reliance and other operators have reportedly spent close to $20 billion (approximately ₹1.72 lakh crore) in recent years acquiring 5G spectrum through auctions.
Despite their concerns, both Reliance and Airtel signed distribution deals earlier this year to sell Starlink equipment, even as they prepare to compete with the service once it becomes available to consumers.
According to comments made by telecom minister Jyotiraditya Scindia to The Print, the process for Starlink to obtain its operating licence in India is “nearly complete.”