Reliance Jio, Amazon Leo spar over proposed satellite network framework

Telecom operator Reliance Jio and Amazon Leo are at loggerheads over the government’s proposed satellite communications network (SCN) framework, with spectrum ownership emerging as the key source of the dispute.

The framework aims to enable satellite companies to act as infrastructure providers by providing capacity to telecoms and internet providers. This essentially creates a new category of companies that will operate satellite communications networks, including ground stations. Licensed telecom and satellite internet service providers will then use this infrastructure to provide satellite internet services to users.

Jio has opposed granting spectrum rights to these infrastructure providers, arguing that only licensed telecom operators should have spectrum through auction.

On Thursday, the Telecom Regulatory Authority of India (Trai) held an industry discussion on the proposed framework for satellite communications network authorization and related spectrum terms. This framework differs from the licenses currently held by companies such as Elon Musk’s Starlink, OneWeb and Jio Satellite, which are used to deliver satellite internet services.

Reliance Jio has argued that the satellite communications network spectrum should be auctioned. “Spectrum should be assigned only to authorized access service providers and no other entity, including the proposed SCN entity, should have the right to use the spectrum,” said UK Shrivastava, head of regulatory affairs at Reliance Jio.

Shrivastava argued that a separate SCN category was unnecessary and that a separation between the service and network layers already existed. He stated that the introduction of an SCN provider would create a regulatory imbalance and harm the orderly growth of the sector.

Amazon Leo, which is currently fighting to get full authority from the government to provide satellite internet services in the country, has opposed auctions of such spectrum. “The feeder connection spectrum should be held by the SCN entity and the user connection spectrum should also be held by the partner entity,” said Faheem Shaikh, head of licensing and regulatory affairs at Amazon Leo South Asia, during the Trai consultations.

Under the Telecommunications Act 2023, the government decided to administratively allocate satellite communications spectrum without auction.

According to Shaikh, restricting ground segment spectrum allocation to Indian service providers will result in the infrastructure being locked into domestic use cases only.

“SCN entities with global constellations will lose their ability to serve neighboring countries through Indian gateways, for which we already have a policy,” Shaikh said, adding that there are landlocked countries like Nepal and Bhutan that are dependent on India or China for internet connectivity and the government should allow SCN to provide internet connectivity for them through Indian gateways.

“If this is going to be a bottleneck, we fear that most of the investment that is expected to come into infrastructure in India will shift to Bangladesh, which has a lot of easy policies with the local internet boom,” he said.

Of course, internet disconnection refers to the point at which internet traffic enters a country and exits to reach the global network. For countries like Nepal or Bhutan, the internet boom is happening through the infrastructure of another country (like India or China) moving their data to global networks.

Unlike Jio on spectrum ownership, Bharti Airtel and Vodafone Idea advocated a middle ground. The two operators stated that user connection spectrum should strictly remain with the service providers, but SCN units should be allowed to retain the feeder connection spectrum to operate the gateways effectively.

In fact, Jio has also faced opposition from its peers over the rollout of direct-to-device (D2D) satellite technology, which will allow smartphones to access mobile connectivity, including internet services, directly through satellites. Reliance Jio wants the government to not rush the rollout and wait for the outcome of the World Radiocommunication Conference (WRC) 2027, a key global event that will decide spectrum rules and regulatory frameworks for D2D services.

“D2D service via satellite using IMT (international mobile telecommunication) spectrum should not be allowed at this stage. We have to wait for the WRC 2027 outcome because this will help develop a policy framework around interference mitigation and will also be useful for global harmonization of IMT bands, thus enabling device interoperability etc,” Shrivastava said.

Jio’s claim comes at a time when it is also preparing to have its own low earth orbit (LEO) satellite constellation. On the other hand, Vodafone Idea announced last year that it had partnered with US-based AST SpaceMobile to provide satellite-based direct mobile connection services.

“Waiting for 2027 means that enabling frameworks will come in, say, 2028-29 and commercial rollouts will obviously happen after 2029-30 or maybe even later, and that would actually take away the country’s ability to tap into and leverage the advantage that D2D brings,” said Ambika Khurana, head of regulatory and corporate affairs at Vodafone Idea.

According to Khurana, early introduction of D2D will accelerate universal connectivity and can play critical roles, especially for national security and disaster emergency services.

Amazon Leo also argued that there should be at least immediate testing and demonstration coverage for D2D services.

The Department of Telecommunications (DoT) has proposed a ‘wholesale’ model for satellite communications such as D2D, which is currently in the telecommunications regulator’s consultation process. According to this model, the satellite company can sell its services to the telecom operator, which in turn can sell these services to the end customer.

The Broadband India Forum (BIF), which represents technology companies, has argued that treating satellite communications as a mere network layer rather than a standalone service is “ultra vires” (beyond the legal authority) of the Telecommunications Act, 2023.

The absence of independent and dedicated satellite service providers, as envisaged in this consultation, will result in satellite network operators being dependent on partnerships with access service licenses to provide satellite-based services. During the Trai debate, BIF additional director general Debashish Bhattacharya said it would harm competition and reduce consumer choice.

During the debate, industry stakeholders also requested the telecom regulator to avoid double taxation by allowing capacity charges paid by service providers to the satellite communications network provider to be fully deducted from gross revenue.