Auctioning of Spectrum for Space-based Communication [UPSC Current Affairs]

A difference of view emerged between the Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (TRAI)  over auctioning of spectrum for space-based communication. In this article, you can know more about spectrum auction for space-based communication and TRAI’s views on the matter. This topic is relevant for the IAS exam science and technology, as well as economy segments.

Spectrum for Space-based Communications

The government is intending to auction the spectrum for space-based communications while TRAI is yet to decide between auctioning the spectrum or offering the spectrum for an administered price.

• The Department of Telecommunications (DoT) has asked the telecommunications regulator TRAI to work on modalities to auction spectrum.
• TRAI released a consultation paper titled “Assignment of Spectrum for Space-Based Communications” and has asked the stakeholders to express their view on whether to auction spectrum or offer at an administered price or other alternatives available.
• Telecommunication companies oppose any move to offer spectrum at an administered price for space-based communication.
• Telecommunication companies oppose because since they buy spectrum at auction price, offering spectrum at an administered price for space-based broadband will affect their competitiveness since telecommunication companies also offer the same service.
• But satellite companies oppose auctioning of the spectrum and argue that all over the world spectrum for space communication is not auctioned but provided through the administered price mechanism.
• Communication Minister Ashwini Vaishnaw said that the government will support a fair auction process and the government prefers to auction spectrum.

TRAI’s Views on Auction of Spectrum for Space Communications

• In September 2021, DOT sent a reference to TRAI for recommending appropriate frequency bands, block size, reserve price and quantum of spectrum to be auctioned for space-based communication services. 
• TRAI asked for clarifications and the DOT replied to take up the issue of space-based communication later due to the urgency of the 5G rollout.
• TRAI in its consultation paper asked the stakeholders for an appropriate methodology to allocate spectrum for space-based communication.
• Further, TRAI has asked the stakeholders to respond to the question of how the spectrum in L and S bands as well as C, Ku and Ka bands should be assigned if auction or administered price mechanism or any other method is followed.
• TRAI also raised the question of the spectrum charging mechanism if the administered price mechanism is selected, for user links and gateway links.

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