India’s Progressive Approach: Allocating Satellite Internet Airwaves Without Auction. In a significant development for the satellite internet industry, India is poised to transform the way it assigns spectrum for satellite internet services. This strategic move not only favors tech visionary Elon Musk and his Starlink project but also signifies a departure from the age-old Indian Telegraph Act that has governed the sector for over a century.
The proposed change is embedded within a new draft bill for the telecommunications sector. This bill seeks to overhaul and replace the archaic Indian Telegraph Act, which has been in effect for an astounding 138 years. This monumental shift in regulatory approach is a testament to India’s commitment to embracing technological advancements and fostering innovation in the telecommunications sphere.
Under the proposed licensing approach, India aims to streamline the allocation of spectrum for satellite internet services. Unlike the traditional auction-based method. Which requires companies to engage in competitive bidding for spectrum rights.
The licensing model offers a more straightforward route. It exempts companies from the burden of participating in bidding wars. Which providing a more efficient and cost-effective means of acquiring spectrum.
India’s decision to modernize its regulatory framework for satellite broadband services holds tremendous potential for the industry. It is estimated that India’s satellite broadband service market will experience an impressive annual growth rate of 36%. By 2030, this burgeoning market is expected to swell to a staggering $1.9 billion.
This growth projection is indicative of the increasing demand for high-speed internet connectivity in the country and especially in remote and underserved areas.
While this move is hailed as a triumph for global satellite internet providers like Starlink, Amazon’s Project Kuiper, and OneWeb backed by the British government, it does present challenges for certain domestic players.
Mukesh Ambani, Asia’s wealthiest individual, and the mastermind behind Indian telecom giant Reliance Jio, faces an unexpected setback. Reliance Jio has been a prominent player in India’s telecommunications sector and was poised to expand its influence into the satellite internet domain.