A new wave

Govt must clear the way for satellite communication

The recent approval of the regulatory recommendations for satellite spectrum allocation should be seen as a step forward for a sector that has been waiting for long to take off. Recently, the Digital Communications Commission (DCC) — the highest decision-making body in the Department of Telecommunications (DoT) — deliberated on the recommendations of the Telecom Regulatory Authority of India (Trai) before setting the satellite spectrum usage pricing at 5 per cent of the adjusted gross revenue (AGR) of a telecom company. For services offered in remote and rural areas, there’s a discounted price, at 4 per cent of the AGR. The spectrum to the applicants for satellite internet such as Bharti group-led Eutelsat OneWeb, Reliance Jio Satellite Communications, and Elon Musk-backed Starlink will be granted for five years with an optional two-year extension. 

The DCC approval has to pass the Cabinet muster in addition to getting security clearances. While it’s important to examine security aspects in a sensitive area like satellite communications, the authorities must move swiftly to clear the decks for the companies to start their operations soon. One of the early applicants, Eutelsat OneWeb, reportedly wrote to the government recently, seeking security approval for its low-earth orbit (LEO) satellite constellation in order to be able to commercially launch its services in India. The company’s plea to the government was that many of its satellites were close to the end of their operational lives and that any further delay could make them useless. The company conducted its security-compliance demonstration some 18 months ago in January last year.         

The policy and regulatory aspects of satellite communications or satellite internet have moved slowly and at times in a disjointed manner. The Trai recommendations on commercial satellite internet services linked to pricing, duration and allocation modalities of spectrum were issued in May last year, but some of the companies were given licences much earlier to offer satellite broadband. While these companies secured satellites and readied their operations based on the earlier licences, the long gap in fixing the regulatory road map, including the modality of spectrum allocation, has kept the service hanging. The divergence of views in the industry on whether spectrum for satellite internet should be auctioned or given on the basis of an administered price emerged as one of the obstacles. The Trai recommendations of last year settled for administered allocation of spectrum in sync with international norms, though airwaves are auctioned for terrestrial services. The DCC approval is on the same lines, leaving no room for confusion. 

Security-related issues have also delayed the service so far. For instance, Starlink secured the letter of intent from the DoT in May 2025, but there have been several security red flags thereafter over its alleged role in the Russia-Ukraine war through its communication network. Also, Amazon Leo, which has been undergoing the security drill to provide internet services in India, may need a fresh licence, according to reports. Satellite internet is expected to be a game changer for the future of communication in India, especially in the remote and rural areas of the country with poor connectivity. The high-speed and low-latency internet service could have far-reaching implications in sectors such as online health care and education. From that perspective, the latest approval from the DCC offers a promise of a new era in communication for India.