The assignment of spectrum for satellite services will be done through administrative means, however, this does not imply that the spectrum will be provided free of charge, as stated by Telecom Minister Jyotiraditya Scindia today. TRAI will determine both the pricing of spectrum and the allocation formula.

“There is a paper that has already been circulated by TRAI and that regulatory authority of telecom has been empowered by the constitution to decide what administrative prices are going to be. And I am very confident that they will come up with the best prices that should be adopted, provided they are under administrative demand,” the minister said during a press briefing in the India Mobile Congress.

The Telecom Act 2023, which was enacted in December of the previous year, specifically indicates that Satcom spectrum allocation will be done administratively. The distribution of satellite spectrum is regulated globally, meaning India's actions are no exception to international norms.

“Also, satellite spectrum is shared spectrum. Now if spectrum is shared then how can you price it individually? There are a number of issues that go into making that decision, which is why, globally, all countries in the world followed a certain part and India is doing pretty much the same,” he said.

Elon Musk, the leader of Starlink, commented that India's decision to auction, instead of allocating, satellite broadband spectrum would be "unprecedented" in response to reports that Mukesh Ambani, another billionaire, was advocating for the auction process.