In the new Telecom Bill, the issue of whether to auction satellite broadband spectrum or offer it at administrative prices has been resolved in favour of the administrative prices. Amongst the telecom operators OneWeb of Bharati pushed for administrative prices, whereas Jio of Reliance demanded an auction. DOT preferred auction and TRAI demanded larger consultation. Indian Space Association (ISpA) which represents key satellite players, along with support from Nelco of Tatas, Kuiper of Amazon and Starlink of Musk are of the opinion that administrative allocation is a global trend, and India should not be an outlier.

In terrestrial operations, the operators require earmarked frequencies with no interference. Here the frequency is given on auction. In satellite services, the spectrum is globally shared by satellites. These work mostly within a particular band. Spectrum use is coordinated by satellite companies through a dynamic automated system on a good faith basis. Hence spectrum should be given administratively. Countries such as Thailand, Mexico and Brazil tried auctions but shifted to administrative allocation. Sharing makes spectrum use efficient. Startups will also get access to the spectrum, and they could provide connectivity to fisherman at sea. Expensive auction route will stifle the existence of these startups.

Jio opposes the move of administrative prices route. Telecom operators who pay for spectrum offer broadband services. Satellite players who pay administrative prices would also offer the same broadband services but without paying any cost on the spectrum. It is thus not a level playing field. There is another possibility. The early entrants in satellite communications will be given preferred orbital slots by International Telecom Union (on a first come, first served basis). The newer ones will be at a disadvantage.

DOT sent a reference to TRAI in September 2021, and TRAI initiated a consultation process. TRAI has not yet stated its final views. However, the government has decided to offer spectrum through administrative route.