Jio seeks minister's intervention to ensure level-playing field in proposed rules on satcom spectrum

New Delhi: Telecom operator Reliance Jio has sought Union minister Jyotiraditya Scindia's intervention to get regulator Trai issue a revised consultation paper on a proposed spectrum allocation rule to ensure a level-playing field between terrestrial and satellite players. Reliance Jio, in its letter to telecom minister Scindia, referred to the Supreme Court's judgement in 2G case and indicated that Trai's failure to incorporate questions on level-playing field may lead to legal tussles. The letter came after Telecom Regulatory Authority of India (Trai) rejected Jio's request for incorporating questions around the level-playing field between terrestrial network players that provide mobile phone services using towers installed on ground and those seeking to offer satellite-based communication services.

On September 27, 2024, Trai floated a consultation process to explore methodology and price for assigning spectrum to satellite companies to provide calling, messaging, broadband and other services in the country. Reliance Jio, in the letter dated October 10, mentioned that satellite communication companies such Elon Musk's Starlink, Amazon's Kupier, Bharti Group-backed OneWeb Eutelsat, and SES-Jio joint venture have expressed interest to provide their services in India, which will directly compete with land based mobile networks, and therefore a fair and transparent auction system for satellite services is essential to ensure level competition. "While the DoT correctly recognised the need for a level-playing field in its reference to Trai, the consultation paper issued by TRAI appears to overlook this critical issue. "It seems Trai has pre-emptively closed the matter without soliciting the views of stakeholders," Jio said.

The telecom operator further said that the consultation paper fails to ask pertinent questions around the level-playing field, which will deprive stakeholders of the opportunity to voice their opinions. "Such a consultation exercise could result in recommendations that disregard this vital issue of level-playing field. Although we have raised this issue with Trai and asked that the consultation paper be revised to address the level-playing field issues between satellite and terrestrial networks, our request has not been considered favourably," Jio said. Under the Telecommunications Act 2023, the government has decided to allocate spectrum without auction through an administrative process for a select set of satellite services. Jio said that neither the Department of Telecom (DoT) nor Trai conducted any comprehensive study on technological evolution, market demand and supply, economic feasibility of auctions of spectrum at the time of incorporating and allowing administrative allocation of spectrum for satellite phone services.

The teleco also said that in line with clear legislative intent and DoT's recognition of the need for a level-playing field between satellite and terrestrial services, Trai must thoroughly assess technological evolution, market demand and supply, technical and economic feasibility of auctions for satellite services. "Failure to do so may expose Trai consultation exercise and consequent recommendations liable to legal scrutiny. Hon'ble Supreme Court of India and its various judgments has emphasised the importance of a transparent and fair mechanism for assignment of spectrum and had junked the 'first-cum-first-served' method of assignment," Jio said. Jio has said fixed satellite services now compete with fixed wireless access services and mobile satellite services compete with terrestrial mobile services. "Any preferential treatment of satellite based services, whether under the guise of emerging technologies or global precedents, should be firmly rejected. Spectrum assignment policies must align with established legal mandates, including the Supreme Court's directive on adopting a fair, transparent and non-discriminatory approach," Jio said.