14 March 2025

This decision comes in response to a push from telecom giants Reliance Jio and Bharti Airtel, who have advocated for shorter allocation periods of 3-5 years, contrasting with Starlink's request for a 20-year permit. The information was reported by Reuters, citing a senior government source.

The shorter allocation period is designed to allow the government to periodically reassess spectrum pricing and market conditions before making longer-term commitments. TRAI is currently working on key recommendations for the federal government, detailing the timeline and pricing for the administrative allocation of satellite spectrum. Unlike traditional telecom licenses, which are typically auctioned for a duration of 20 years, the satellite spectrum allocation will be done administratively, potentially offering satellite broadband providers more affordable access to spectrum and intensifying competition with established telecom players.

Starlink sought a 20-year allocation to ensure stability in long-term pricing, a request in contrast to Reliance, which advocated for a three-year term to facilitate regular market reassessments. Bharti Airtel, which has also formed a distribution partnership with Starlink, supports a three-to-five-year term.

A senior government source noted that TRAI believes a shorter timeframe will better enable the monitoring of sector growth and competition. The government plans to finalize its recommendations on the license timeframe and related spectrum pricing within the next month, after which they will be submitted to India's telecoms ministry for action.

The shorter license duration would allow the government to revisit spectrum prices after five years, reflecting the evolving market landscape. The satellite spectrum pricing is expected to be significantly lower than the costs associated with traditional telecom licenses granted via auction.