Why in news?

Speaking on the sidelines of the India Mobile Congress, Telecom minister said that satcom spectrum will be allocated administratively but will come at a cost.

As per the announcement, the cost of spectrum and the formula of allocation will be decided by the Telecom Regulatory Authority of India (TRAI).

What’s in today’s article?

• Airwaves/Spectrum
• Satellite spectrum 
• Auction vs administrative allocation of spectrum
• Satellite spectrum to be allocated administratively in India
• Spectrum allocation controversies in India

Airwaves/Spectrum

• Airwaves are radio frequencies within the electromagnetic spectrum that can carry information wirelessly for a range of services including telecommunications.
• The government manages and allocates airwaves to companies or sectors for their use.
• The government auctions a fixed amount of spectrum within specified band/s to be utilised by operators for providing communication services to consumers.
• 

Satellite spectrum

• About
  • Satellite spectrum refers to the range of radio frequencies used by satellites to communicate with ground stations, other satellites, and various devices on Earth.
  • These frequencies are part of the electromagnetic spectrum, specifically the radio waves, and are allocated for different satellite services, such as communication, broadcasting, navigation, and Earth observation.
• Regulation
  • The use of satellite spectrum is regulated by international bodies like the International Telecommunication Union (ITU).
  • ITU coordinates and allocates frequencies to prevent interference between different satellite systems and other forms of communication.
• Satellite Frequency Bands
  • L-band (1-2 GHz): Used for GPS and mobile satellite services.
  • S-band (2-4 GHz): Used for weather radar, air traffic control, and mobile satellite services.
  • C-band (4-8 GHz): Commonly used for satellite TV broadcasting and data communications.
  • X-band (8-12 GHz): Used primarily by the military for radar and communication.
  • Ku-band (12-18 GHz) and Ka-band (26-40 GHz): Used for satellite television, internet, and high-throughput data transmission.

Auction vs administrative allocation of spectrum

• Auction
  • Auctions involve competitive bidding, where spectrum licenses are sold to the highest bidder, promoting efficient resource allocation and generating revenue for the government.
  • This method ensures transparency, reducing the chances of favoritism or corruption, and is commonly used in commercial telecommunications for optimal spectrum usage.
  • Auctions are preferred in competitive markets where multiple entities compete for access.
• Administrative allocation
  • Administrative allocation involves the government directly assigning spectrum licenses without a bidding process, often for a nominal fee covering administrative costs.
  • This method is used when auctions are impractical, offering flexibility for sectors like national security, public services, or emerging industries like satellite communications.
  • It is suitable for areas with low competition or where frequency sharing among users is feasible, ensuring easier access to resources for specialized or government-related services.
• Key differences between auction and administrative allocation
  • The auction method is competitive, market-driven, and generates significant revenue, ensuring transparency by allocating spectrum to the highest bidder, making it ideal for commercial markets.
  • In contrast, administrative allocation is a direct government assignment with lower fees, offering flexibility but less transparency, suited for government services or specialized sectors.
  • Both methods are essential in spectrum management, with the choice depending on regulatory goals and market needs.

Satellite spectrum to be allocated administratively in India

• About the news
  • The government has chosen to allocate satellite communication (satcom) spectrum through administrative means, rejecting the auction route.
  • This development underscores the growing competition for satellite services in the Indian market, which is projected to grow at 36 per cent annually and reach $1.9 billion by 2030.
  • Starlink, Musk’s company, advocates for direct licensing, aligning with global practices and arguing that spectrum, as a natural resource, should be shared.
  • On the other hand, Reliance, led by Ambani, believes that an auction is necessary to ensure fair competition.
• Rationale behind India’s stand
  • Unlike terrestrial spectrum which is used for mobile communications, satellite spectrum has no national territorial limits and is international in character.
    • Satellite spectrum is shared spectrum. If the spectrum is shared, then it cannot be priced individually.
  • As a result, satellite spectrum across the world is allocated administratively.
  • India, being a signatory of ITU, decided to follow the global practice of allocating satellite spectrum administratively.
  • The Telecommunications Act, 2023, had also added spectrum for satellite communication in the list of administrative allocation.

Spectrum allocation controversies in India

• India’s spectrum allocation has been controversial, especially due to the shift from auctions to administrative assignments, highlighted by the 2G spectrum scam.
• The scam involved allocating licenses on a first-come, first-served basis, resulting in significant financial losses, with alleged damages of Rs 30,984 crore and a presumptive loss of Rs 1.76 trillion.
• Following this, the Supreme Court mandated auctions for spectrum allocation in 2012.
• Despite this, the Telecommunications Act 2023 introduced a non-auction route for allocating satellite spectrum, marking a shift in the regulatory approach.