The Indian government has chosen to allocate satellite broadband spectrum through an administrative pricing mechanism, instead of holding an auction, as per a recent report by Business Standard. This comes after a two-year-long debate among various stakeholders including OneWeb, Reliance Jio, and the Department of Telecommunications (DoT).
While OneWeb and DoT advocated for the administrative route, Reliance Jio lobbied for an auction-based system. The government’s final decision rests on the belief that administrative allocation will ensure fairer distribution of the spectrum, particularly for smaller players.
The chosen method involves setting a pre-determined price for the spectrum, eliminating the need for competitive bidding. This could potentially benefit smaller companies like OneWeb, as they may not have the financial muscle to compete with giants like Reliance Jio in an auction scenario.
However, the decision has also drawn criticism from some quarters, who argue that it may discourage private investment in the sector. They believe that an auction would have fetched higher revenues for the government and also promoted greater efficiency in spectrum utilization.
The debate surrounding spectrum allocation is not new, and has been a contentious issue for years. The government’s latest decision is likely to have a significant impact on the development of the satellite broadband market in India, and it remains to be seen how it will play out in the long run.
It’s important to note that this is a complex issue with various perspectives, and the government’s decision has both pros and cons. It’s too early to say definitively whether this is the right approach, and the impact will likely be clearer in the coming years.
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