Published on: June 4, 2025 6:49 pm
📡 Airtel and Jio Warn DoT: Starlink’s Low Spectrum Fee Will Hurt Indian Telecom
📍 Introduction
India’s leading telecom players, Bharti Airtel and Reliance Jio, have raised red flags over Elon Musk’s Starlink entering the Indian market under what they claim is a “unfair pricing regime”. In a formal letter submitted via the Cellular Operators Association of India (COAI) to the Department of Telecommunications (DoT), both telcos assert that the low fees proposed for satellite communication spectrum will hurt their core business and future investments.
🚀 Starlink’s Entry into India: A Disruption in the Making
🛰️ What is Starlink?
Starlink, a satellite-based broadband service by Elon Musk’s SpaceX, plans to offer high-speed internet across India, particularly targeting rural and remote areas. The service uses low-Earth orbit (LEO) satellites and is expected to start at ₹850/month, significantly cheaper than its U.S. counterpart.
📉 Telcos Say: Uneven Playing Field Ahead
💰 Jio and Airtel’s Investment Risk
India’s top telecom companies have spent over ₹1.6 lakh crore (~$20 billion) acquiring 5G spectrum through auctions. In contrast, TRAI’s recommendation of a 4% annual revenue fee for satellite services like Starlink is 21% lower than what terrestrial operators pay.
⚠️ Key Concerns by Airtel and Jio:
- Loss of competitive advantage to satellite operators
- Revenue risk due to customer migration to cheaper alternatives
- Reduced returns on 5G infrastructure investments
- Market imbalance that discourages innovation in terrestrial telecom
⚖️ Spectrum Pricing Debate: What’s Fair?
🗣️ The TRAI Proposal
The Telecom Regulatory Authority of India (TRAI) has suggested non-auction-based pricing for satellite spectrum to promote global satcom firms like Starlink, Amazon’s Kuiper, and OneWeb. The intent is to make satellite internet accessible and affordable in underserved regions.
📤 Telcos’ Counterpoint
Airtel and Jio argue this would be anti-competitive, and urge the DoT to:
- Introduce auction-based pricing for fairness
- Apply equal regulatory fees across spectrum categories
- Ensure universal service obligations for satellite providers too
🧩 Can Satellite and Terrestrial Coexist?
🤝 Strategic Partnerships in Progress
Despite the opposition, both Airtel and Jio have signed preliminary deals with Starlink to distribute its internet service via their existing networks. Jio will assist in installation, activation, and customer support, while Airtel may offer bundled Starlink services in remote markets.
🔗 See how Indian telcos are adapting to the satellite internet age
📊 What Lies Ahead for India’s Telecom Sector?
As Starlink’s licensing process nears completion, the DoT faces a critical challenge — striking a balance between innovation and fairness. While satellite internet offers unmatched reach, regulators must ensure it does not undermine terrestrial infrastructure investments that have powered India’s telecom boom.
📌 Conclusion
The letter from Airtel and Jio to the DoT marks a pivotal moment in India’s evolving telecom landscape. With Starlink preparing to disrupt traditional models, the regulatory choices made now will shape the future of digital access, competition, and pricing across the country.