Satcom spectrum framework moves closer to Cabinet approval

New Delhi: India’s satellite communications market has moved a step closer to commercial rollout after the Digital Communications Commission (DCC) approved most of the Telecom Regulatory Authority of India’s recommendations on spectrum allocation, according to people familiar with the development.

The DCC, the Department of Telecommunications’ apex decision-making body, considered the proposals at its meeting on September 3.

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“The DCC has approved the majority of recommendations made by Trai on satcom spectrum,” a person aware of the matter said.

The Department of Telecommunications (DoT) will now seek Cabinet approval for the spectrum-pricing formula and administrative allocation process.

Starlink, backed by Elon Musk; Bharti Group-supported Eutelsat OneWeb; and Reliance Industries’ Jio Satellite Communications have secured permission to provide satellite communication services in India. Commercial operations, however, cannot begin until spectrum is assigned and the companies receive the second stage of security clearance.

TRAI had recommended in May 2025 that satellite broadband spectrum be allocated for an initial five-year period, extendable by another two years.

The regulator proposed an annual spectrum charge equivalent to 4 percent of adjusted gross revenue (AGR) for both geostationary orbit and non-geostationary orbit operators. Sources, however, said the DoT favoured a higher levy of 5 percent.

During the consultation process, Starlink and Amazon subsidiary Kuiper Systems had sought a spectrum charge of less than 1 percent of AGR without additional levies.

TRAI’s proposed framework also includes a minimum annual charge of Rs 3,500 per MHz. Operators serving urban subscribers would face an additional levy of Rs 500 per subscriber annually, while rural services would be exempt from this charge.

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The regulator has also recommended subsidising satellite user terminals in unserved and underserved rural and remote regions. Such equipment typically costs between Rs 20,000 and Rs 50,000, making affordability a significant barrier to adoption.

Satellite broadband is expected to complement rather than replace terrestrial networks in densely populated cities. A single satellite constellation, for instance, may support only 10,000 to 20,000 connections in a market such as Delhi, where broadband demand is estimated at around 50 lakh connections.

The proposed pricing framework will apply to fixed and mobile satellite services using both geostationary and non-geostationary satellites. Non-geostationary systems include low-earth and medium-earth orbit satellites, which move relative to Earth, unlike geostationary satellites that remain positioned over a fixed location.

The Cabinet’s decision on pricing will be critical for determining both the commercial viability of satellite broadband services and the affordability of connections in areas that remain beyond the reach of fibre and conventional mobile networks.

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