Summary:
The Digital Communications Commission (DCC) has approved most of TRAI’s recommendations on spectrum allocation for satellite communication services, with the matter now expected to go to the Cabinet for final approval. Starlink, Eutelsat OneWeb and Jio Satellite Communications have received initial approval to launch services but still require spectrum allocation and security clearance. TRAI proposed a 4% AGR-based spectrum charge, while the DoT is reportedly considering 5%, along with a minimum annual fee of Rs 3,500 per MHz and additional urban subscriber charges. The regulator has also recommended subsidies for satellite terminals in underserved areas, where high equipment costs could limit adoption.
The Digital Communications Commission (DCC), the Department of Telecommunications’ highest decision-making body, has cleared most of the recommendations submitted by sector regulator Telecom Regulatory Authority of India (Trai) regarding spectrum allocation for satellite communication services, according to sources.
Starlink, led by Elon Musk, Bharti Group-backed Eutelsat OneWeb and Reliance Industries Ltd’s Jio Satellite Communications have already received approval to commence satellite communication services in India.
However, the companies cannot launch these services until spectrum is allocated and they obtain the second stage of security clearance from the relevant security agencies.
“DCC in its meeting held on September 3 has approved the majority of recommendations made by Trai on satcom spectrum,” a source familiar with the development said.
The Department of Telecommunications will now submit the matter to the Cabinet for final approval on the pricing and allocation mechanism for radio spectrum to be used for satellite communication services.
In May 2025, Trai recommended that spectrum for satellite broadband services be assigned for a five-year period, with the possibility of extending the allocation by an additional two years.
The regulator had proposed charging satellite communication providers such as Starlink a fee equivalent to 4 per cent of their annual revenue. However, sources said the DoT favoured a 5 per cent charge instead of the 4 per cent rate recommended by Trai.
During consultations with Trai, Starlink and Amazon Inc’s subsidiary Kuiper Systems had called for spectrum charges to be kept below 1 per cent of adjusted gross revenue (AGR), with no additional charges imposed.
The proposed 4 per cent spectrum charge based on AGR would apply to both geostationary orbit (GSO) and non-geostationary orbit (NGSO) operators. The operators would also be subject to a minimum annual spectrum fee of Rs 3,500 per MHz.
Trai had also recommended that satellite operators providing services in urban locations pay an additional Rs 500 per subscriber each year.
No such additional charge would apply to services provided in rural areas.
The regulator has further supported providing subsidies for satellite user terminals in unserved and underserved rural and remote regions. The one-time hardware cost of these terminals typically ranges between Rs 20,000 and Rs 50,000. Trai noted that the relatively high cost could discourage adoption and limit the use of satellite services in areas that are difficult to reach.
Even after approval, a single satellite constellation would be capable of providing only around 10,000-20,000 connections in areas such as Delhi, compared with an estimated requirement of 50 lakh broadband connections.
The proposed satellite spectrum pricing, expressed as a percentage of AGR, would apply to both NGSO and GSO-based fixed-satellite services (FSS) as well as mobile satellite services (MSS).
NGSO satellites operate in either low-Earth orbit (LEO) or medium-Earth orbit (MEO). Unlike GSO satellites, which remain in a fixed position relative to the Earth, LEO and MEO satellites move relative to the planet.
