Reliance, Airtel Oppose Low Satellite Spectrum Pricing in India

India's major telecom operators Reliance Jio and Bharti Airtel, represented by the Cellular Operators Association of India (COAI), have raised strong objections to the country's proposed pricing for satellite spectrum, warning that the low 4% annual revenue fee for satellite internet providers such as Elon Musk's Starlink creates an unfair competitive advantage. The COAI argues that traditional telecom companies pay significantly higher costs—approximately 21% of their revenues—due to expensive spectrum auctions and associated fees, and urge the government to ensure pricing parity between satellite and terrestrial services serving the same consumers. Starlink has lobbied for administrative licensing rather than auctions, claiming spectrum is a shared natural resource, a stance opposed by Reliance and Airtel, who have invested nearly $20 billion in 5G spectrum acquisitions. The telecom ministry is currently reviewing these concerns, with the COAI emphasizing the principle of 'same service, same rules' to maintain a level playing field. Despite the competition, Reliance and Airtel have signed agreements to distribute Starlink equipment, though Starlink’s full market entry is expected to directly challenge traditional providers. The debate highlights the tension between fostering innovation through satellite broadband and protecting the significant investments of established telecom players in India’s expensive spectrum market.