Revolutionizing Telecom: India's Bold Move in Satellite Spectrum Allocation

Union Telecom Minister Jyotiraditya Scindia emphasized reform in satellite spectrum allocation, rejecting first-come-first-serve methods. Scindia highlighted the lack of global precedence for spectrum auctions due to scientific constraints, pledging administrative allocation. Amidst telecom sector shifts, BSNL reports profits and advances in indigenous 4G technology rollout.

In a significant policy shift, Union Telecom Minister Jyotiraditya Scindia announced on Friday that satellite spectrum allocation will eschew the controversial first-come-first-serve model, once used for 2G services. Speaking at the India Economic Conclave, Scindia clarified that scientific principles prevent the auctioning of satellite spectra, a practice not adopted by any country globally.

The minister argued that it is fundamentally impossible to auction shared spectrum like that used in satellite services, necessitating an administrative allocation overseen by the Telecom Regulatory Authority of India. This move counters opposition from telecom operators who favor competitive bidding over administrative assignments for satellite communications.

In parallel, Scindia noted that state-owned BSNL is now operationally profitable since 2021, with revenue growth and cost reductions. The telecom firm is advancing with 4G infrastructure based on indigenous technology, with plans to transition some services to 5G by mid-2025.

(With inputs from agencies.)