During the past year, satellite communications services or satcom have gained much prominence in India. With a massive market opportunity that is pegged to be worth over USD 263 million by 2028, satcom services are understandably being touted as the next big frontier for telecom operators to focus on. However, while Jio and Airtel have both announced that their services are ready to commence, the most crucial piece of the jigsaw is missing at the moment - the spectrum itself.
Conflict around giving stakeholders of the industry access to satellite spectrum was driven by letters written by Reliance Jio and Vodafone Idea, to the Telecom Regulatory Authority of India (TRAI). In these letters, the telcos argued that administrative allocation of shared satellite spectrum could potentially kill commercial incentives and advantages for these firms. As a result, a faction of the industry, largely led informally by Reliance Jio, demanded an auction of spectrum.
WHAT IS THE INDUSTRY PRECEDENT?
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