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Telecom regulator recommends new licence to let satellite firms rent out networks to telcos
If DoT accepts the recommendations, global satellite firms such as Starlink and Eutelsat OneWeb could enter India purely as network providers.
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The telecom regulator on Thursday recommended a new licence that would allow companies to build and run satellite communication networks in India and rent them to telecom operators, without selling services directly to the public.
The Telecom Regulatory Authority of India (TRAI) proposed the “Satellite Communication Network (SCN) provider authorisation” under the Telecommunications Act, 2023. The recommendations are not binding and would take effect only if the Department of Telecommunications (DoT) accepts them.
If DoT accepts the recommendations, global satellite firms such as Starlink and Eutelsat OneWeb could enter India purely as network providers. Telecom companies such as Reliance Jio and Bharti Airtel could offer satellite services without building their own satellite networks.
Under TRAI’s proposal, the licence holder would operate the ground segment of a satellite network in India, including gateway earth stations that communicate with satellites, network equipment, and spectrum. It would then rent this network to licensed telecom companies, such as mobile operators or internet service providers.
The telecom companies would sell satellite internet, calls or messaging to customers under their own brands.
TRAI has recommended that, to be eligible, a company should have satellite capacity authorised by the Department of Space, be a subsidiary of such a company, or have an agreement to run its gateways in India. It has proposed that the licence be national, valid for 20 years and renewable.
The proposed licence would not be permission to launch or operate satellites, which remains with the Department of Space. Holders would not be allowed to sell services directly to consumers. They would also not need to own satellites, as a company running gateways for a foreign satellite operator could qualify.
How it would work
Under the proposed model, a satellite company would operate the network, while its telecom partner would sell the service, bill customers, and handle complaints. TRAI has suggested that the SCN provider could either seek its own spectrum from DoT, naming the partner it would serve, or use spectrum the partner already holds, but only to serve that partner.
TRAI has recommended that spectrum be allotted administratively, not auctioned, for up to five years. It has asked DoT to decide on applications within 30 days, once security clearances are in place. The regulator did not propose a new spectrum price. It said SCN providers should pay whatever DoT finally decides for satellite operators. That decision is pending on TRAI’s May 2025 proposal of 4% of adjusted gross revenue.
TRAI has proposed an entry fee of ₹37.5 lakh and a licence fee of 8% of adjusted gross revenue. It has also recommended that telecom companies be allowed to deduct what they pay SCN providers from their own revenue for fee purposes, so the same money is not charged twice.
Satellite signal on ordinary phones
TRAI also recommended allowing direct-to-device services, in which satellites connect directly to regular smartphones in areas without mobile towers. Under its proposal, mobile operators could use their existing spectrum for this at no extra charge, without waiting for the 2027 World Radiocommunication Conference. However, the same frequency channel would have to be available across all 22 telecom circles.
The regulator has proposed that all traffic from users in India pass through gateways located in India and not be routed or copied abroad, even if a local gateway fails. Providers would have to allow real-time monitoring and lawful interception, and gateways would have to be running within 12 months of approval.
