Telcos concern to Trai satcom spectrum pricing an ‘overreaction’
COAI warns low satellite spectrum charges could threaten telecom revenues.
India’s Cellular Operators Association (COAI) has raised alarms over Trai’s recommendations on satellite communication (satcom) spectrum pricing, warning that “incorrect assumptions” have led to unjustifiably low charges for satellite services compared with terrestrial networks.
But Ujjwal Kumar, Associate Director & Deputy Head at CUTS Centre for Competition, Investment & Economic Regulation, believes the concerns are overstated. “I think COAI is overreacting a bit. Of course, they are worried. They have been under stress recently, and the 5G rollout is not giving them much more yield as envisaged.”
Kumar added that India’s track record in space technologies and its ambitions for 6G make satcom adoption critical. “Particularly going forward in the 6G, the introduction of satcom is very important in India, and these recommendations largely promote them. And these recommendations are very time bound, five years, and after that, it will be reviewed,” he noted.
Telcos fear that lower satcom pricing could draw away premium users, but Kumar argued the risk will likely remain limited to specific segments. “Particularly the high-end consumers may likely to shift towards satcom services, viewing the tariff structure that is being offered internationally, and is kind of expected in India. It doesn't seem that the normal consumers in India will shift much,” he said.
At the same time, Kumar said added competition would be healthy for a highly consolidated market dominated by two major operators. “There is largely a duopoly in India with two players, a very struggling third player called Vodafone Idea and a fourth. The public sector is still technologically retarded. So we welcome that there is a major competition in India, and in the long run, it will be good for everybody,” he explained.
Kumar stressed that regulatory frameworks must evolve as networks converge, and noted that satcom would help bridge India’s rural-urban divide and improve disaster resilience.
