Policy disconnect

Ambiguity on satellite communication is creating unease

The recent public spat between stakeholders on approvals related to satellite-broadband service in India points to a systemic problem. It started with Elon Musk, chief executive of Texas-headquartered SpaceX and Tesla, hitting out at potential rivals in India, calling them “oligarchs’’ and blaming them for blocking competition. He specifically insinuated that Reliance Industries Ltd (RIL) might have had a role in delaying the security clearance of Starlink, the satellite-internet company operated by SpaceX. RIL rejected the allegations, saying that it welcomed competition and that Jio Satellite Communications too was waiting for security approval. Bharti Enterprises Chairman Sunil Bharti Mittal joined the war of words, stating that his company had been in the queue the longest in starting satellite broadband in India. As for the Union government, Minister of Communications Jyotiraditya Scindia retorted by saying that India did not allow monopolies in any sector.

 Bharti Enterprises-backed Eutelsat OneWeb, Starlink and Jio Satellite have all been granted the licence to operate satellite-broadband service in India, but they cannot commercially launch operations without security clearance from the government. Eutelsat OneWeb is reported to have got the Global Mobile Personal Communication by Satellite (GMPCS) licence way back in 2021. Jio Satellite got its licence in 2022, while Starlink was able to make the cut in 2025. The fact that the companies armed with the requisite licence are unable to launch commercial operations is a matter of concern and frustration for businesses. Granting licences and then making businesses wait for the security nod, stretching over years, signifies an adverse regulatory environment. This is especially true when the government wants to intensify its reform trajectory, enabling ease of business and enhancing flow of foreign investments. To help realise the goals of satellite communications, the government departments and agencies must act in sync with one another rather than as individual power centres working in silos. While the licence — GMPCS — came from the Department of Telecommunications (DoT), other approvals for satcom are granted by the Department of Space (DoS), Ministry of Home Affairs, and security agencies. In the case of Starlink, it’s been under scrutiny over its alleged role in the Russia-Ukraine war through its communication network.

 While the security checks have to be foolproof, the government must provide clarity on the process of approvals and indicate a timeline for starting operations. Some of the satellites engaged for the yet-to-be launched satcom services are fast approaching end of life, having been on hold for so many years. Besides security approvals, there are other deliverables as well. For instance, the Union Cabinet has to give the final go ahead on spectrum pricing. More than a month ago, the Digital Communications Commission (DCC) — the highest decision-making body of the DoT — set satellite-spectrum pricing at 5 per cent of the adjusted gross revenue (AGR) of a telecom company. For services offered to remote and rural areas, there’s a discounted price, at 4 per cent of AGR. This followed a long-drawn dispute over the mode of spectrum allocation for satellite communication. The DCC decision, based on the recommendations of the Telecom Regulatory Authority of India (Trai), will have to be taken up by the Union Cabinet. India’s satcom journey, expected to benefit low-connectivity areas including rural and hilly regions, should not face any more hurdles.