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TRAI's Satellite Spectrum Pricing Plan Sparks Clash Between Telecom Operations, BIF

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Business Honor - TRAI Satellite Spectrum Pricing Clash

Business Honor
18 September, 2025

BIF supports TRAI’s satellite pricing plan, opposing telecom needs. Warning equal pricing could delay innovation and rural internet access.

The price of satellite spectrum is an issue of argument between satellite communication businesses and India's telecom giants. The Telecom Regulatory Authority of India’s (TRAI) plan for fair satellite spectrum pricing gained support from the Broadband India Forum (BIF), supported by multinational technology businesses like Meta, Google, Amazon, and Intel. The Cellular Operators Association of India (COAI), representing telecom providers like Airtel, Jio, and Vodafone Idea, raised concerns, which BIF dismissed in a letter to Telecom Secretary Neeraj Mittal.

COAI advocates for fair treatment for satellite and terrestrial connections, claiming that the pricing is too inexpensive. Yet, BIF argues that the two technologies have different uses. Based on the report, communication through satellite is very important for isolated and rural regions that are hard for common mobile networks to access. According to BIF, "terrestrial and satellite systems support one another instead of competing with one another." Highlighting that there is a possibility of interaction, as major telecom providers like Jio and Airtel are currently teaming up with satellite service providers like Starlink.

BIF continues to highlight the gap in market size. That satellite communication sector in India is still very small, with an estimate of only ₹600 crore, while the telecom sector earns around ₹3.36 lakh crore yearly. Yet, the cost of spectrum per user rises for satellite players. With businesses like Amazon's Project Kuiper and Starlink preparing to launch services in India. While BIF warns that forcing telecom-style pricing on the satellite sector might delay innovation and investments. The next phase of India's technological growth is expected to be impacted by TRAI's final cost decision. Leading to a world of opportunities, allowing stable internet access throughout the nation while supporting India's aim to attain full digital access.