Key satellite communication spectrum detail has Trai in a bind

The Telecom Regulatory Authority of India (Trai) is in a bind while charting out modalities for auctioning airwaves for satellite communication.

As per officials aware of the details, the biggest challenge that the regulator is facing is around which unit to use while selling such spectrum. Since satellite spectrum is different from access or mobile spectrum, selling it on a per MHz basis may not be a feasible option. In case, some quantum has to be given on a per MHz basis, specific supporting conditions need to be prescribed.

Officials told ET the regulator has had around three rounds of discussions with the Department of Telecommunications (DoT) on the matter but hasn't found a solution so far. The DoT, on its part, has made it clear that while it wants satcom airwaves to be auctioned, it is the Trai's responsibility to spell out the modalities.

Trai is working on issuing a consultation paper on the modalities around auction of satellite spectrum. "The regulator is working on the issue, and we expect the satellite consultation paper by the end of this month or by early April. We firmly believe that price needs to be discovered by market forces and that can only happen by auction," said a DoT official, asking not to be named.

Another official added that if for some reason the Trai comes up with a view that it is not possible to auction satcom spectrum, then it must specify the reasons. "Otherwise, it will be difficult for the DoT to take any decision."

The department feels that in the absence of an auction, it would need to seek clarification from the SC if satellite spectrum can be allocated administratively.