Reliance Jio and Bharti Airtel are clashing over how to deliver internet services to remote areas of India using satellite spectrum. The crux of the issue lies in whether Airtel Bharti-backed Eutelsat OneWeb should be allowed to use administratively allocated spectrum, without auctions, for commercial fixed wireless access (FWA) services.
Read More: Gold Price Rises In India: Check 22 Carat Rate In Your City On April 14
Jio’s argument that administratively allocated satellite spectrum cannot be utilized to provide commercial FWA services only because it is a 5G use case has apparently been rejected by Bharti-backed Eutelsat OneWeb, as per a report of Economic Times.
“Jio is unnecessarily trying to confuse matters by comparing apples with oranges. It’s a clear fact that 5G-based FWA services will be directly offered by telcos to millions of retail users across India whereas satellite-based services will only be offered in the country’s remote, unconnected regions, primarily to enterprises, defence forces, government health centres and for disaster management operations via a B2B model,” a senior Eutelsat OneWeb executive told Economic Times.
Since Eutelsat OneWeb won’t be providing retail customers with direct access to satellite-based FWA services, the company actually claims that it is not in competition with Jio.
Read More: SBI Extends Deadline For Amrit Kalash FD scheme; Know New Deadline, Interest Rate And Other Details
Reliance Jio argues that Bharti-backed Eutelsat OneWeb shouldn’t be allowed to use administratively allocated spectrum, without auctions, for commercial FWA services. Jio sees this as an unfair advantage, claiming all satellite FWA spectrum should be auctioned to ensure a level playing field.
Eutelsat OneWeb counters that their services are fundamentally different. They aim to target remote locations, businesses, and government agencies with a business-to-business model, not millions of individual users like Jio’s planned 5G-based FWA.
This distinction is a sticking point. Jio maintains it’s irrelevant, while Eutelsat OneWeb emphasizes the contrasting target markets. Both companies see vast potential in satellite internet – Eutelsat OneWeb aspires to be the first global provider in India, and Jio seeks to avoid falling behind.
The Indian government holds the key. They are cautious about allocating spectrum, delaying the companies’ hopes for a swift rollout. Further consultations and discussions are likely before a decision is made. This wait-and-see approach adds another layer of uncertainty to India’s nascent satellite internet race.
Read More: Vodafone Idea Announces Rs 18,000 Crore FPO; Offer Opens On Apr 18
“It will take a few months to finalise how we must move forward. If required, views of the regulator will be sought, and we may also undertake some consultation with the stakeholders,” one of the senior DoT officials told ET.
