BL Interview. Satellite is a complementary solution, it is no longer a different technology: Mathew Oommen, Reliance Jio

Satellite is a great technology...historically satellite has been used as a backhaul technology, but now, for the last two years, the same devices, the same services using 3GPP (mobile standard), going after the same customer is what satellite is doing. It is evolved from a vanilla backhaul technology to an extension in the sky type of capability. It’s an evolution. So when that evolution has happened, the coexistence of satellite and other mobile technologies is becoming a reality.

We absolutely believe that since everything is the same -- services, devices, customers and standards -- why should it be any different. Anything other than auction will distort the market significantly. Satellite is a complementary solution to 5G or 4G. So, should there be a different spectrum policy? The answer from my end is, absolutely no. This is because these two technologies are doing the same thing. What might have happened 10 years ago and what satellite capability today is 180 degrees different. So, we have to evolve policies in line with technology and service evolution capabilities.

Once Telecom Regulatory Authority of India (TRAI) and Department of Communications (DoT) are done with the due processes, I am sure they are going to come with this new course...it is for the government to determine. When it comes to the formal process, I am sure every satellite providers in India will want to get access to that spectrum. Any spectrum is based on supply and demand, there is always a demand...Things have changed, satellite is evolved, we cannot have a regressive policy to be applied to a progressive technology. UAE, Thailand and New Zealand have recently auctioned spectrum for satellite. We as a nation are the most deprived spectrum nation. Why is that? In 4G, we have 300-400 million of subscribers, we had 60-65 MHz of spectrum. You take Europe and the US and all the tier 1 operators there, many operators have 100-110 million subscribers...there, 4G only spectrum is more than 150-155 MHz. But, here, I have four times their subscribers, but almost one-third of their spectrum. And, in consumption, the US has 6-7GB, but in India today is around 25GB. So, we are three times more than their consumption. So, subscribers, spectrum and consumption, you think how deprived we as a nation are. In the mid-bands also they have average 600-700 MHz in 3GHz to 6GHz, we have around 100-130 MHz in the C band. Just because somebody is doing X does not mean its applicable to us too. We need to do what is right for us...we are no longer a tier 2 nation, we are a tier 1 plus nation. We are in the elite league, we should not be apprehensive of adopting the right policies.

For direct to mobile services anyone who cannot afford connectivity or monthly rent should be given a device and service model by leveraging the USOF (under the DoT). The USOF has got around ₹75,700 crore. If we truly want to drive the ‘Digital India’ vision, we should take that and put into use. I believe the current license fee for telecom operator is eight of the adjusted gross revenue (AGR) – five per cent for USOF and three per cent as real license fee – and in my view that five per cent should be zero because you better use the funds which is already there and let the telecom industry use that fund for continued investment. Give them as an incentive to the telecom industry rather than keeping it in a pocket that is getting no benefit. The reason is, it is the same government who is asking the operator to go ahead and put technologies and services in different markets across.

Device is a critical equation in the adoption of various services. That came with 4G and we brought the most affordable 4G adoption. Now 5G devices are coming in the bracket of Rs.10,000 and we see more and more 5G adoption happening. We do see in India all of a sudden, a lot of demand in the ₹15,000-20,000 category. But, it is important just like the Jio powered phone that we just launched, it is very important for us to consider that we do not forget the 240 million who are still with 2G. It is critical for us as an industry to take them with us in our digital journey because our digital journey is not just anymore about connectivity and communication. Our digital journey is to break the barriers of even AI because AI has become how do you democratise not just communication and connectivity but really democratise AI, I think there is a big opportunity. That is why I said USOF should be leveraged for not just putting power but also giving subsidies to individuals who cannot afford the transition.

For LEO (like OneWeb), there needs 100s of satellites. For us, it will be eight-nine satellites because we have in the MEO (medium earth orbit) orbit.