How TRAI's license limits could impact Starlink's future in India
What's the story
The Telecom Regulatory Authority of India (TRAI) is mulling a five-year limit for satellite broadband spectrum licenses, a Reuters report said.
The move could throw a spanner in the works of Elon Musk's Starlink, which is eyeing a 20-year license.
The TRAI is preparing key recommendations for the federal government on the duration and pricing of satellite spectrum, to be allocated administratively.
Collaboration
Mukesh Ambani's Jio Platforms partners with SpaceX for Starlink
Mukesh Ambani-controlled Jio Platforms Ltd. has joined hands with SpaceX to offer Starlink Inc.'s satellite Internet services in India.
The news comes just a day after Bharti Airtel Ltd. announced a similar partnership.
The collaboration will enable the sale of Starlink devices at Ambani's Reliance stores, greatly expanding their distribution reach across the country.
Divergence
Starlink and Reliance have different spectrum allocation proposals
Starlink has urged the Indian government to allocate spectrum for 20 years, to focus on "affordable pricing and longer-term business plans."
In comparison, Reliance has pitched a three-year term after which it wants India to reassess the market.
Bharti Airtel has also pitched a license period of three to five years.
Agreement
TRAI's proposed license duration aligns with Starlink's rivals
A senior government official told Reuters that, TRAI is likely to propose a shorter license duration "of around five years and then see how the sector grows."
This way, it will help understand market stabilization, making it unnecessary to extend beyond five years.
An industry insider familiar with licensing procedures told Reuters that this shorter duration would allow the Indian government to revise spectrum prices after five years as the market evolves.
Finalization
TRAI to finalize recommendations in a month
The government official also said that it would take about a month for the TRAI to finalize its recommendations on the license duration and per megahertz spectrum pricing.
These recommendations would then be sent to India's telecom ministry for further action.
KPMG predicts India's satellite communication industry would grow more than tenfold and reach a value of $25 billion by 2028.