Bharti expects the government to charge administered price for satellite internet. It proposes to set up two ground stations to uplink rural areas. It requires minimal spectrum. Telecom companies point out Bharti is not the only player. Other companies too are entering the field — Starlink, Amazon, Telesat. Thus India may have between 20-25 ground stations collectively. Each ground station must have an exclusion zone of over 200 km, where a telecom company would not be able to set up a tower to avoid interference. In other words, telecom companies will not be able to co-exist and the use band between 28 GHZ to 29.5 GHZ for 5G terrestrial services. It is earmarked for satellite.

Satellite firms thus should pay the replacement cost ( for not being able to use the spectrum for which they paid a high price in auction.) Satellite firms expect the same spectrum to be given to them at nominal price. They should pay the market price. It will be a level playing field.

Satellite firms would also be using KU band to link customer terminals to the satellite. Thus KU band spectrum needs auction. VSAT operators use KU band at administered price but for limited purpose of running the ATMs. There is no huge demand. Satellite firms are offering broadband internet and are competing with telecom companies. Therefore, they cannot ask for administered prices.

Spectrum, according to SC, is a scarce resource and must be auctioned.

In future, satellite companies may adopt the hybrid model — it works on 5G handsets which get connected to both satellites and terrestrial networks. It will then be a universal service not restricted to remote areas.