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Amazon, Starlink execs caution government on spectrum pricing, regulations
- The pricing of air frequencies used by satellite companies have snowballed into a full-blown battle in India, with billionaires Mukesh Ambani and Sunil Bharti Mittal on one side and Elon Musk and Jeff Bezos on the other.
- Airtel Chairperson Sunil Bharti Mittal said that satellite companies should buy spectrum in the same manner as mobile network operators if they go after the urban, well-off subscribers.
- Reliance Jio has been strongly opposing the government’s move to assign spectrum to satellite communication companies without auction while Bharti Group, has pressed for administrative allocation of satellite spectrum.
- If the government prices the airwaves used for satellite communication services higher, the satellite communication companies will be compelled to go after the urban and connected subscribers.
- On spectrum pricing, the universal model that administrations are adopting is a cost recovery model. Citing ITU data, Amazon Kuiper business head said there is a need for $488 billion to connect and bridge the digital divide.
- David Goldman, Head, Satellite Policy, SpaceX, who was one of the panelists at the IMC session, said that satellite spectrum is a shared resource, and thus it can’t be auctioned.
- Goldman cautioned the government that for satellite operators to succeed, it is important for the government and the regulator to encourage operators to coordinate spectrum usage.
- Goldman said Starlink has launched a new service, direct to cell (D2C), wherein the mobile users can connect with satellites in case they go out of mobile network coverage area.
- The company doesn’t offer direct to cell services on its own. Starlink partners with a telecom service provider to offer the service.
- As of now, the direct to cell service only allows text messaging, WhatsApp, and voice.
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