No change in satellite spectrum pricing despite telco pushback; DoT likely to approve TRAI plan soon: Report

Starlink, OneWeb, Jio wait as India nears big satellite policy shift

The Department of Telecommunications (DoT) is not planning to alter the Telecom Regulatory Authority of India’s (TRAI) proposed pricing for satellite spectrum, despite strong objections from telecom operators, Business Standard has reported, citing senior government officials.

TRAI had recommended in May that satellite communication (satcom) companies pay 4 percent of their adjusted gross revenue (AGR), plus an annual administrative fee of Rs 3,500 per megahertz of spectrum and Rs 500 per urban subscriber.

Telecom operators have criticised the plan as 'unfair' and 'unjustifiably low,' warning that it could create an uneven playing field between satellite and traditional mobile service providers. But the telecom department appears firm in moving forward.

“The regulator has given its recommendations. There is no need for any changes to them,” a senior official told Business Standard, adding that the policy could be reviewed after five years, depending on market trends.

Another official said the proposal is expected to be approved in the next couple of months after a review by the Digital Communications Commission (DCC), followed by clearance from the Ministry of Finance. After that, spectrum allocation to eligible applicants could take another 30–45 days.

A full commercial rollout of satellite internet services is expected by early next year, according to the report.

Global and Indian satellite operators, including Elon Musk’s Starlink, Bharti group and Eutelsat-backed OneWeb, and Reliance Jio’s Jio Satellite Communications Ltd, are all waiting for final clarity on TRAI’s pricing structure.

The DoT issued a letter of intent to Starlink on May 7, just before the recommendations were made public. However, Starlink has not yet received trial spectrum, as it is still finalising the location of its ground station. Meanwhile, OneWeb and Jio have already been allocated trial spectrum, with permissions extended into this year.

India’s top telecom companies have raised multiple objections through the Cellular Operators Association of India (COAI). In a letter to the DoT in late May, COAI argued that satellite services are increasingly becoming substitutes for terrestrial services and should therefore be subject to the same spectrum fees and obligations.

The letter raised concerns of adopting an 'ad hoc' approach and said the proposed pricing was based on outdated models such as VSAT services, rather than a rigorous techno-economic evaluation. COAI also objected to the absence of any entry fee or upfront spectrum payment for satcom operators, noting that terrestrial players pay for spectrum through auctions, with long-term obligations spanning 20 years.

COAI further pointed out that NGSO (non-geostationary satellite orbit) operators would have fewer financial and operational burdens, as TRAI has proposed a shorter five-year term for satellite spectrum, extendable by two more years.

TRAI Chairman Anil Kumar Lahoti, however, defended the regulator’s model, saying that satellite spectrum is a shared resource globally and is typically priced through administrative mechanisms rather than auctions.