This decision aligns with the Telecommunications Act of 2023, which includes satellite communication spectrum for administrative allocation, prompting the Department of Telecommunication (DoT) to instruct the Telecom Regulatory Authority of India (TRAI) to establish a methodology for this process.

Jio has argued that auctioning satellite spectrum is essential to prevent an uneven playing field between satellite and terrestrial services.

This outcome is seen as a significant victory for competitors like Elon Musk's Starlink, who are active in the satellite communications market.

The nature of satellite spectrum is inherently international and managed by the ITU, which complicates the feasibility of national auctions.

India has decided against Reliance Jio's proposal to auction airwaves for satellite communication, choosing instead to pursue administrative allocation.

In response, Musk has countered Jio's assertions by emphasizing that the spectrum is classified as shared for satellites by the International Telecommunications Union (ITU).

According to KPMG, India's satellite communication sector is projected to grow from $2.3 billion to $20 billion by 2028, highlighting significant untapped broadband potential in 290.4 million households.

Historically, the US last auctioned satellite spectrum in 2004 but has since shifted to administrative assignments due to the complexities involved.

Other countries, including Brazil and Saudi Arabia, have also auctioned satellite spectrum but have reverted to administrative allocation for similar reasons.

Understanding the distinction between terrestrial and satellite spectrum is crucial; while terrestrial spectrum is exclusive, satellite spectrum is non-exclusive and can be shared among multiple operators.

Satellite communication services are particularly valuable as they can reach remote areas lacking mobile access, providing essential connectivity during emergencies and extreme weather.

These satellite services utilize orbiting satellites to deliver connectivity, offering advantages such as broader coverage and a more resilient network compared to terrestrial alternatives.