# Satellite Spectrum in India: Auction vs Administrative Allotment, the 2G Judgment and the Starlink Row

By Shivam Singh, Founder & Mentor, Minimalist IAS · Published 17 Oct 2026
Source: https://www.minimalistias.com/blog/satellite-spectrum-auction-vs-administrative-allocation-starlink-upsc

> Reliance and Starlink disagree on whether satellite spectrum should be auctioned. A UPSC explainer on the Telecommunications Act, 2023 and its First Schedule, the 2G judgment and 2012 Presidential Reference, TRAI's May 2025 advice, and who decides.

**Satellite spectrum in India is assigned administratively, not auctioned: the Telecommunications Act, 2023 lists certain satellite services in its First Schedule, so the government sets the terms instead of running a bid.** Auction stays the default for 4G and 5G bands. The Supreme Court has held that auction is not a constitutional mandate for every natural resource, but allocation must be fair.

> **Why in news:** Reliance Industries has rejected Elon Musk's charge, as reported, that "oligarchs" are blocking Starlink, saying it welcomes competition under the same rules for all. Reliance has long argued for auction. Starlink, Jio Satellite and Eutelsat OneWeb reportedly still await security clearance and spectrum.

## Key facts at a glance

- **Law:** spectrum is auctioned, except for First Schedule uses, which are assigned administratively (Telecommunications Act, 2023).
- **Courts:** the 2G judgment and the Presidential Reference, both 2012, shape the auction debate.
- **TRAI advice (May 2025):** 4% of adjusted gross revenue (AGR); ₹500 per urban NGSO subscriber a year; up to five years. Not yet final.

## What does the Telecommunications Act, 2023 say about satellite spectrum?

The dispute begins with the statute's default rule and its exceptions.

- **Default:** the Centre, owner of spectrum "on behalf of the people", auctions it (Section 4).
- **Exceptions:** the 19 First Schedule uses, including "certain satellite-based services" such as GMPCS, VSAT and DTH.
- **Amendment:** the Centre can amend the Schedule by notification, laid before Parliament.
- **Open question:** TRAI treated NGSO broadband as covered; critics say only "certain" services are.

## Why is satellite spectrum shared, not exclusive?

The exception rests on how satellites use frequencies. **Think of a highway:** a 5G band is a toll road sold to one bidder; satellite spectrum is a highway many use under traffic rules, so the State levies a fee.

- **Orbits:** geostationary satellites sit at about 35,786 km; LEO constellations like Starlink fly at 500-600 km, cutting latency.
- **Sharing:** several operators use one band over the same area; the ITU coordinates filings.

## Auction vs administrative assignment: what is the difference?

Both routes are lawful; they differ in who sets the price and who may use the band.

*Figure: Three cards: auction is the default, where bids set the price for terrestrial bands such as 4G and 5G; administrative assignment is for First Schedule uses including certain satellite services, with the government setting the charge; and the court test is that auction is not a constitutional mandate for every natural resource, according to the 2012 Reference.*

| Point | Auction | Administrative assignment |
| --- | --- | --- |
| Price set by | Bidders | Government, on TRAI's advice |
| Use | Usually exclusive to the winner | Usually shared |
| Case for | Transparency, price discovery | Sharing, lower entry cost |

- **For auction (Reliance, as reported):** a level playing field with operators that paid for spectrum; the 2G precedent.
- **For administrative assignment (Starlink and others, as reported):** shared bands, lower cost, rural reach.
- **TRAI's middle path:** ₹500 per urban subscriber, rural and remote users exempt.

## What did the 2G judgment and the 2012 Presidential Reference decide?

Reliance's case rests on the courts, so the two rulings must be kept apart.

- **2G case (2012), under Article 14:** quashed 122 licences given first-come-first-served; the State is trustee of natural resources and must allocate fairly; fresh 2G spectrum was to be auctioned.
- **Reference (2012), under Article 143(1):** auction is preferable but not a constitutional requirement for all natural resources; it declined questions on spectrum, so 2G stands.
- **Today:** TRAI took the Schedule as it stands; reviewing its entries lies with the Central Government.

## Who decides satellite spectrum, and what has TRAI recommended?

Advice and decision sit with different bodies.

*Figure: Five steps from the Act to a satcom launch: Parliament sets auction as default with a First Schedule of administrative uses; DoT asks TRAI for terms and pricing in 2024; TRAI advises in May 2025 on 4% of AGR, 500 rupees per urban NGSO subscriber and up to five years; the Central Government decides price and assignment; and the operator also needs a GMPCS licence, IN-SPACe authorisation and security clearance.*

- **TRAI recommends** (TRAI Act, 1997): 4% of AGR, minimum ₹3,500 per MHz a year, up to five years, extendable by two.
- **Centre decides:** it may return the advice; reports say DoT favours 5%, with a Cabinet note pending.
- **IN-SPACe** authorises the space segment; a **GMPCS licence** permits the service; neither is spectrum assignment.

## Prelims traps

> **1. Auction is the default, not universal.** First Schedule uses are administrative.

> **2. The Reference did not overrule 2G.** It held auction is not a constitutional mandate for all natural resources.

> **3. TRAI recommends; the Centre decides.** The 4% of AGR is advice, not law.

## Why it matters for UPSC

**GS Paper III** (telecom, space, natural resources) and **GS Paper II** (regulatory bodies). **Prelims:** default rule, First Schedule, TRAI vs DoT. **Mains:** fairness in allocating a natural resource against efficient sharing of spectrum.

## Mentor's note

- **Don't write that the 2012 Reference overruled the 2G judgment.** It answered a different question and declined those bearing on spectrum.
- **Name the hook.** Cite Section 4(4) with the First Schedule and the Centre's power to amend it, not just "the Act allows allotment".
- **Cover dimensions:** legal (Article 14), economic (level playing field), technological (shared, LEO), security (clearances), social (rural connectivity).
- **Stay neutral.** The decision is pending; weigh both positions rather than backing Starlink or Reliance.

## Recall in 60 seconds

- **Default rule?** Auction, except First Schedule uses, which are administrative.
- **Two 2012 rulings?** 2G: fair, transparent allocation. Reference: auction not a constitutional mandate.
- **Who decides?** TRAI recommends; the Central Government decides.
- **TRAI's May 2025 advice?** 4% of AGR; ₹500 per urban NGSO subscriber; up to five years.
- **Licence = spectrum?** No.

## Practice: Prelims MCQ

**Consider the following statements:**

**1. Under the Telecommunications Act, 2023, spectrum is assigned by auction unless the use is listed in the First Schedule.**

**2. In the Presidential Reference of 2012, the Supreme Court held that auction is the only constitutionally permissible method of allocating natural resources.**

**3. The recommendations of TRAI on spectrum assignment are binding on the Central Government.**

**4. The Telecommunications Act, 2023 repealed the Indian Telegraph Act, 1885 and the Indian Wireless Telegraphy Act, 1933.**

How many of the above statements are correct?  
(a) Only one  
(b) Only two  
(c) Only three  
(d) All four

**Answer: (b) Only two**

**Explanation:**

**Statement 1 is correct:** Section 4(4) makes auction the default and assigns First Schedule uses administratively.

**Statement 2 is incorrect:** the Court held auction is not a constitutional requirement for all natural resources.

**Statement 3 is incorrect:** TRAI advises under the TRAI Act; the Central Government decides and may send advice back for reconsideration.

**Statement 4 is correct:** the 2023 Act repealed both colonial-era laws.

## Practice: Mains question

> **Satellite broadband has revived the debate on auctioning spectrum. Examine how the Telecommunications Act, 2023 and the Supreme Court's 2012 rulings shape the choice between auction and administrative assignment of satellite spectrum, and suggest safeguards for fairness. (Answer in 250 words; 15 Marks)**

## Terms to know

- **AGR:** adjusted gross revenue, the base on which spectrum charges are levied
- **NGSO:** non-geostationary orbit, such as low Earth orbit constellations
- **GMPCS:** Global Mobile Personal Communication by Satellite, a licence to offer satellite services
- **IN-SPACe:** Indian National Space Promotion and Authorisation Centre, which authorises private space activity

## Frequently asked questions (FAQs)

### Is satellite spectrum auctioned in India?

No. The Telecommunications Act, 2023 lists certain satellite services in its First Schedule, so their spectrum is assigned administratively. Auction remains the default for other uses, and the Centre can amend the Schedule.

### Why does Reliance want satellite spectrum auctioned?

As reported, Reliance seeks a level playing field with terrestrial operators and cites the 2G judgment. Starlink and others argue satellite spectrum is shared and so suited to administrative assignment.

### Did the Supreme Court say natural resources must be auctioned?

No. The 2G judgment required fair, transparent allocation. The 2012 Presidential Reference held auction is not a constitutional mandate for all natural resources, though arbitrary methods fail Article 14.

### Who decides satellite spectrum pricing?

TRAI recommends; the Central Government, through DoT, decides. TRAI advised 4% of AGR in May 2025. As of October 2026, reports say no final decision has been notified.

## Related reading

- [Practise previous-year questions in the free PYQ vault](https://www.minimalistias.com/pyqs)
- [Revise this month's current affairs in The Monthly Compass](https://www.minimalistias.com/resources/magazine)
- [All Daily UPSC Briefs](https://www.minimalistias.com/resources/daily-brief)

## Sources

- [The Telecommunications Act, 2023 (Gazette of India)](https://egazette.gov.in/WriteReadData/2023/250880.pdf)
- [TRAI: Recommendations on assignment of spectrum for certain satellite-based services (May 2025)](https://trai.gov.in/sites/default/files/2025-05/Recommendtion_09052025.pdf)
- [Supreme Court: Special Reference No. 1 of 2012, Natural Resources Allocation (2012)](https://www.scobserver.in/wp-content/uploads/2025/07/Special-Reference-1-of-2012.pdf)
- [IN-SPACe: official site](https://www.inspace.gov.in/)

From [The Daily UPSC Brief](https://www.minimalistias.com/resources/daily-brief), 17 October 2026 — by Shivam Singh.

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