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 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.
The Telecom Regulatory Authority of India (TRAI) proposed the “Satellite Communication Network (SCN) provider authorisation” under the Telecommunications Act, 2023.
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. The regulator did not propose a new spectrum price. 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.
It has asked DoT to decide on applications within 30 days, once security clearances are in place. 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 said SCN providers should pay whatever DoT finally decides for satellite operators.
