The Indian government is making significant strides in the satellite communication sector, with the Telecom Regulatory Authority of India (TRAI) on the verge of finalizing recommendations for the allocation of satellite communication spectrum. As of May 9, 2025, the government has issued licenses to key players in the market, including Eutelsat OneWeb and Jio Satellite Communications, paving the way for them to commence their services once the necessary radio-wave frequencies are allocated.
Starlink, the satellite internet service operated by Elon Musk's SpaceX, has also received a letter of intent (LoI) for providing Global Mobile Personal Communications by Satellite (GMPCS), Internet Service Provider (ISP), and Very Small Aperture Terminal (VSAT) services in India. According to reports, Starlink has agreed to comply with stringent security norms set by the government, which were tightened earlier this week to enhance the security of satellite communication services.
Union Minister Chandra Sekhar Pemmasani, speaking at an industry event, noted that while the approval process for Starlink is complex, it is nearing completion. He emphasized the importance of these security measures, particularly given the current geopolitical climate, where threats from nations like Pakistan have raised concerns about cybersecurity.
Despite the excitement surrounding satellite internet services, Minister Pemmasani cautioned that Starlink's role in the broader connectivity landscape would be limited compared to traditional telecom networks. He stated, "Starlink will have a minuscule role in connectivity compared to traditional telecom networks," and highlighted the high initial costs associated with satellite technology, which he described as being ten times more expensive than conventional models.
In a related development, TRAI's recent recommendations outline that satellite communication companies, including Starlink, Eutelsat OneWeb, and Jio Satellite Communications, will be required to pay 4% of their adjusted gross revenue (AGR) as spectrum charges to the government. This charge is steeper than what these companies had initially lobbied for, with Starlink and Amazon's Kuiper Systems requesting a spectrum charge below 1% of their AGR.
Additionally, TRAI has proposed a minimum annual charge of ₹3,500 per MHz for companies offering both fixed and mobile satellite services, alongside an annual charge of ₹500 per subscriber for fixed satellite service providers in urban areas. Such pricing is aimed at ensuring that satellite operators do not primarily target urban users due to their higher-paying capacity.
Starlink and other satellite communication providers will have their spectrum assigned for a period of five years, which can be extended for an additional two years, according to TRAI's recommendations. The regulatory body has emphasized the necessity of these services in reaching underserved areas where traditional telecom networks are absent, particularly in rural and remote regions.
TRAI Chairman Anil Kumar Lahoti underscored the complementary nature of satellite communication services to terrestrial networks, stating, "There is no ground for competition between the players. These are complementary services." He explained that satellite services could play a crucial role in disaster response and recovery operations, as well as providing connectivity in areas where terrestrial services are inadequate.
As part of the new framework, TRAI has recommended that the government consider providing subsidies for fixed user terminals in rural areas, where the one-time hardware costs can range from ₹20,000 to ₹50,000. This subsidy is intended to alleviate the financial burden on consumers in these regions and encourage the adoption of satellite services.
Moreover, TRAI's recommendations indicate that the frequency spectrum for satellite telecommunication services will be assigned on a shared basis across higher bands such as C, Ku, Ka, and Q/V. The government has also been advised to facilitate the establishment of satellite earth station gateways in remote locations, where the likelihood of telecom services being provided is minimal.
In a broader context, the recommendations have sparked discussions among industry stakeholders regarding the future of satellite communication in India. While some players, including Jio and Airtel, have advocated for an auction process for spectrum allocation, Musk's Starlink has favored an administrative allocation method. The government has opted for the latter approach, which aligns with international norms and aims to ensure a level playing field for all operators.
As the landscape of satellite communication in India evolves, the upcoming visit of Elon Musk later this year is expected to further highlight the importance of this sector in the country. With the groundwork being laid for satellite internet services, the potential for improved connectivity in underserved regions is on the horizon, promising a brighter future for millions of Indians currently lacking reliable internet access.
