Consumers at receiving end | Jio and Airtel dials in Starlink | TRAI avoids auction route

Swaraat / Swaraat Editor Desk

Since the debacle of 2G auction, government has been treading on tightrope in allotting spectrum to telecom companies. Bharat succeeded in eschewing ‘Free basic’ carrot through referendum. Though we failed miserably on satellite TV issue, where corporates dictated and imposed the terms that consumers were forced to accept making it dearer especially for urban dwellers.

Due to mismanagement in 2G, many new entrants were forced to quit the telecom space. Eight companies lost their licenses and citizens lost multi-player competitive tariff advantage. Merger of the existing few ensured oligopoly leaving consumers at the mercy of operators. Market disrupting entry of Jio forced existing players to provide the service cheaper. But, due to inflationary aspect, the tariff has been going up gradually. 

The Telecom Regulatory Authority of India (TRAI) has decided to provide administrative allotment to Satellite communication (Satcom) players. They may also recommend restriction to provide services in unserved regions initially for a five-year license term to assess the market. TRAI needs to ensure that satcom adheres to strict data privacy laws of the country.

Starlink has been in discussion with Bharat’s telecom regulator – TRAI, in establishing their business in Bharat. They have applied for a license for twenty-year period. They have also signed agreement with both Airtel and Jio for large distribution access of their devices. Though Airtel and Jio vehemently opposed entry of Satcom players like Starlink initially, they changed their position against Starlink to sign a deal.

Starlink deploys Low Earth Orbit Satellite against traditional satellites. It must place a constellation of satellites to provide the service. Initial reports suggest installation and subscription might be costly. Businesses in remote areas, where telecom services have not reached, may opt for satcom. Low latency with moderate speed is advantageous, while possible disruption during overcast condition is a cause of concern.

Early adopters of new technologies would be excited with the prospect of satcom. Hopefully, in a few years due to volume and competition, the service may become affordable for the consumers. As of now, the wait is almost over for the launch, but consumers must be patient to enjoy the technology at a better cost.