Global satcom players warn draft rules for provision of services could derail investment, urge govt to restore separate authorisation

Global satcom players warn draft rules for provision of services could derail investment, urge govt to restore separate authorisation

Global satellite players, including Amazon Kuiper, OneWeb, Hughes, Viasat, and Nelco, through their industry body, the Broadband India Forum (BIF), have urged Communications Minister Jyotiraditya M. Scindia to amend the draft rules issued under the new telecom authorisation framework.

They warned that failing to recognise satellite communications as a distinct service could deter investment and create legal inconsistencies.

BIF argued that treating satellite merely as a “system” or “technology” under the new draft rules undermines the Telecommunications Act, 2023, which clearly recognises satellite as a service.

The Department of Telecommunications (DoT) published draft rules on September 5, 2025, proposing to fold satellite-based telecommunications into four existing categories—Unified, Access, Internet, and Long Distance—because satellite is just “a type of media.”

According to the BIF, this conflation contradicts Parliament’s intent, TRAI’s recommendations of September 2024 and February 2025, and longstanding licensing precedent.

The law explicitly lists satellite-based services such as VSAT, GMPCS, DTH, DSNG, and Mobile Satellite Services under Item 16 of the First Schedule as eligible for administrative spectrum assignment. “Under the doctrine of subordinate legislation, rules cannot override the parent statute. The draft rules, in their current form, are therefore ultra vires,” BIF noted.

In a letter dated September 29 to Scindia, BIF president TV Ramachandran warned that removing separate service authorisation for satellite would delay rural and remote connectivity, where it is often the only option.

He also cautioned that regulatory uncertainty and tougher licensing conditions could discourage foreign investment. “The existing GMPCS and VSAT under UL have been licensed for years as services. By suddenly treating them as systems, the draft rules create a contradictory and impractical environment for operators and consumers alike,” he said.

"In their current form, the absence of separate service authorisation for satellite-based services in the Draft Rules is likely to severely impact proliferation of much-needed services required for digital inclusion and addressing the rural-urban digital divide. In order to ensure legal consistency and avoid vulnerability, the Draft Rules should be reviewed. They must be aligned with TRAI’s Recommendations of 18 September 2024 and 28 February 2025, which clearly call for a separate service authorisation for Satellite-based Telecommunication Services," he said.

The body pointed out that India’s National Frequency Allocation Plan (NFAP-2022), consistent with International Telecommunication Union (ITU) regulations, recognises fixed-satellite and mobile-satellite as distinct radiocommunication services. The draft rules’ terminology, it argued, is out of step with this global framework.

BIF also highlighted the imbalance between terrestrial and satellite markets. While the satellite industry serves only about three lakh users and generates Rs 600 crore annually, terrestrial telecom caters to 119 crore subscribers with revenues of Rs 3.25 lakh crore.

Despite this gap, the draft rules impose entry conditions designed for large operators: an entry fee of Rs 12 crore, a bank guarantee of Rs 44 crore, and a net worth requirement of Rs 25 crore.

Telecom regulator, TRAI, had recommended much lower thresholds of Rs 50 lakh, Rs 0.5 crore, and Rs 1 crore. “Such disproportionate conditions could render the sector commercially unviable, shutting out niche players critical for rural connectivity and innovation,” the Forum said.

The draft rules, Ramachandran said, also contradict the government’s own 2022 Satellite Communications Reforms, which underscored the role of satcom in disaster management, agriculture, logistics, and bridging the digital divide. Even the DoT’s website places satellite alongside Access, Carrier, and Data services—not as a mere technology. “Failure to recognise satellite as a service will erode trust in government policy and reforms,” BIF added.

Globally, jurisdictions including the UK, France, Germany, and China maintain separate licensing frameworks for satellite services, acknowledging their unique infrastructure and 15–20 year investment cycles. Without similar recognition, BIF warned, India risks becoming an outlier, which would push foreign capital to more predictable regimes, delay rural broadband rollouts, and undermine its credibility in global digital policy.

“Satellite services are a distinct commercial sector of vital national and strategic importance. The Draft Rules must be reviewed to align with the Telecommunications Act, TRAI’s recommendations, and international best practices,” he said, calling on the DoT to restore satellite as a separate authorisation category.