Telecom regulator Trai on Friday countered arguments that its suggestions of fixing the spectrum levy at four per cent of revenue for satcom companies like Starlink will distort the market or deal a blow to terrestrial players, such as Reliance Jio and Bharti Airtel. Trai Chairman Anil Kumar Lahoti asserted that perception that satellite services have started competing with terrestrial services in other markets is "not a factually correct statement”. “We have demonstrated in our presentation also, and it is part of our analysis in the recommendation...There is a huge difference between the capacity of terrestrial and satellite networks, and the ratio ranges from 60:1 to 250:1,” Lahoti said. There is no question of the two services being at par, he said, pointing out that they are, in fact, complementary. Citing a case in point, the Trai chief said that in Delhi, against a requirement of 50 lakh broadband connections, a single satellite constellation can offer just 10,000-20,000 connections.

 

“That is the kind of ratio. If in Delhi, a satellite operator starts offering a product at a cost lower than terrestrial service providers, they will be sold out within days. There is a huge difference between the capacity of the two, and we don’t think in the foreseeable term of five years, the situation is likely to significantly alter,” he noted. On the rationale of pricing, Trai said it has examined thoroughly and in detail whether there is any case of real competition or level-playing field between the two types of services.