Lately, Reliance Jio, one of India’s leading telecom service providers has lodged a complaint with the Union Telecom Minister, Jyotiraditya Scindia over an important regulatory matter. The grievance is based on the aspect of spectrum allocation to satellite communication which has seen Jio complaining of unfair nature and lack of transparency in the current measures being undertaken by the Telecom Regulatory Authority of India (TRAI).
What is the Issue?
Satellite communications are being developed string with new entrants into the market including Starlink by Elon Musk, Kuiper by Amazon, amongst others and One Web operated by the Bharti group of companies depending on the backup of global IPOs. These Satellite based services are planned to offer direct competition to mainstream mobile networks that depend on the terrestrial spectrum for business. Nevertheless, the Indian government has shifted toward an administrative, though administratively allocated spectrum for satellite services under the new Telecommunications Act 2023 have replaced the auction system. This is the issue of contestation, where Reliance Jio wanted the allocation of satellite spectrum to be conducted using the same auction system as that of the terrestrial ones for fairly competitive purposes.
Jio's Concerns explained in 'Complaint letter'
Reliance Jio in its letter to Minister Scindia to the department of telecommunications dated 10/Oct/2024 felt that current consultation paper brought out by TRAI does not adequately address the call for equal treatment for satellite and terrestrial players. Jio also as a same concern ofones aid that the regulatory framework being developed might favor satellite services in a way that it will cause them to compete on an unfair basis with mobile operators such as Jio, Airtel and others.
Jio pointed out that, although the DoT had, in the past, appreciated the need for framed competition, the TRAI’s consultation paper appeared to do so. The paper does not require stakeholders to answer fundamental questions relating to how spectrum must be shared to balance competition between satellite and terrestrial services. Jio believes that this oversight can have huge implications for the telecom space that can open up long term legal battles.
Introducing of the 2G Spectrum Case
On the same note, portfolio rationalization is perhaps the strongest point in Jio’s argument – as the Supreme Court held in the 2G spectrum case, spectrum should be allocated equally and non–discriminatorily. In their letter, Jio claims that under the current position that TRAI is taking, this principle is violated which invites legal attention. The company also pointed out that the lack of response to the matter concerning level competition between various types of networks may lead the consultation process to be controlled by the judiciary.
The Potential Impact
From the letter of Reliance Jio, it has been observed that there is a blurring of line between satellite and terrestrial services which had been more evident with the emergence of FWA. Satellite communication services are no longer only associated with specific specific uses but feature as substitutions for mobile services. Jio fears that such favorable treatment for satellite services in the name of supporting new platforms may harm the current players in the telecom sector and disturb the competitive parity.
In addition, Jio has blamed the DoT and the TRAI for not undertaking proper analysis of the technology and economic aspect of current spectrum distribution mechanisms. Accordingly, Jio has delicate that without right erudition, satellite operators could obtain spectrum through administrative procedures without regard for the long-term market and competitive characteristics as well as fair sharing of the latter.
Jio’s Request
On these considerations Reliance Jio has called upon the Minister for Communications and I.T. Mr.Scindia to initiate moves to ensure that TRAI revises its consultation paper. Again, Jio stressed that this paper must encompass specific questions on how to establish a proper mechanism to auction satellite spectrum in a more transparent system. It has also urged the telecom giant to conduct a deeper assessment of the technological trends and the market conditions in addition to the feasibility of the rules on spectrum allocation.
Failing to consider such problems, Jio states, may lead to satellite operators gaining the right to participate in the mobile market while not being subject to regulatory and financial standards set for terrestrial network operators.
Jio pointed out that, although the DoT had, in the past, appreciated the need for framed competition, the TRAI’s consultation paper appeared to do so. The paper does not require stakeholders to answer fundamental questions relating to how spectrum must be shared to balance competition between satellite and terrestrial services. Jio believes that this oversight can have huge implications for the telecom space that can open up long term legal battles.
Introducing of the 2G Spectrum Case
On the same note, portfolio rationalization is perhaps the strongest point in Jio’s argument – as the Supreme Court held in the 2G spectrum case, spectrum should be allocated equally and non–discriminatorily. In their letter, Jio claims that under the current position that TRAI is taking, this principle is violated which invites legal attention. The company also pointed out that the lack of response to the matter concerning level competition between various types of networks may lead the consultation process to be controlled by the judiciary.
The Potential Impact
From the letter of Reliance Jio, it has been observed that there is a blurring of line between satellite and terrestrial services which had been more evident with the emergence of FWA. Satellite communication services are no longer only associated with specific specific uses but feature as substitutions for mobile services. Jio fears that such favorable treatment for satellite services in the name of supporting new platforms may harm the current players in the telecom sector and disturb the competitive parity.
In addition, Jio has blamed the DoT and the TRAI for not undertaking proper analysis of the technology and economic aspect of current spectrum distribution mechanisms. Accordingly, Jio has delicate that without right erudition, satellite operators could obtain spectrum through administrative procedures without regard for the long-term market and competitive characteristics as well as fair sharing of the latter.
Jio’s Request
On these considerations Reliance Jio has called upon the Minister for Communications and I.T. Mr.Scindia to initiate moves to ensure that TRAI revises its consultation paper. Again, Jio stressed that this paper must encompass specific questions on how to establish a proper mechanism to auction satellite spectrum in a more transparent system. It has also urged the telecom giant to conduct a deeper assessment of the technological trends and the market conditions in addition to the feasibility of the rules on spectrum allocation.
Failing to consider such problems, Jio states, may lead to satellite operators gaining the right to participate in the mobile market while not being subject to regulatory and financial standards set for terrestrial network operators.
This case of Reliance Jio shows a major issue in the regulatory field of the dynamic telecommunication market in India. This is even more important as new services such as satellite come into the map and there is need for the regulators to fashion out ways to encourage fair competition between different sectors of service providers. In asking Minister Scindia to intervene on its behalf, Jio wants to keep the telecom industry competitive and ensure that all satellite and terrestrial players along with Jio will operate on level functioning and merit
Leave a comment