Satellite spectrum pricing still under discussion; govt bars overseas use of Indian gateways: MoS Telecom

India has already established frameworks for satellite spectrum allocation and gateway operations, paving the way for a smoother rollout of satellite internet by players such as Starlink and Eutelsat OneWeb.

Satellite spectrum pricing remains under deliberation between the Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (Trai), following objections from private telecom operators to Trai’s recent recommendations, Minister of State for Communications Chandra Sekhar Pemmasani told Moneycontrol on August 25.

“Spectrum pricing is the discussion right now. I mean, they [Trai] have proposed certain things, but many people, some companies, have objected to it. The final discussions are ongoing... Trai is an independent regulator. They will come up with something," Pemmasani said. Asked if the telecom department has sent any reference to Trai, the minister said both agencies are still in discussions, adding, "It is in the process."

On May 9, Trai had proposed that satellite communication providers—including Starlink, Eutelsat OneWeb, and Jio Satellite—should pay 4% of their adjusted gross revenue (AGR) as spectrum usage charges. The government has yet to take a final decision on the proposal.

In June, India’s top telecom operators, through their body the Cellular Operators Association of India (COAI), voiced strong objections to Trai’s proposals on satcom spectrum pricing, calling the suggested rates “unjustifiably low.” In a joint letter to the DoT and ministries including Finance, Commerce, MeitY, and NITI Aayog, COAI criticised the recommendations for being based on “opaque and irrational assumptions.”

Addressing queries on operators like OneWeb seeking approval to serve overseas customers through Indian gateways, Pemmasani was categorical: “Whatever licence we have given applies only to India. We will not be allowing anything for outside the country.”

On the commercial rollout of satellite services, Pemmasani clarified that the government has not set any deadlines. “It is up to them and their operational metrics to launch. We didn’t define their timeline [for launch],” he said. The minister also confirmed that all licensed satcom players have complied with security requirements. “The licences are for five years,” he noted.

India has already established frameworks for satellite spectrum allocation and gateway operations, paving the way for a smoother rollout of satellite internet by players such as Starlink and Eutelsat OneWeb. The move is expected to significantly boost connectivity in rural and remote areas, aligning with the government’s digital inclusion goals.

Elon Musk’s Starlink was the most recent company to secure a Global Mobile Personal Communication by Satellite (GMPCS) licence from DoT after meeting all security compliance requirements under its letter of intent (LoI).

Under these security rules, Starlink and other operators are prohibited from copying, decrypting, or routing Indian user traffic outside the country. All satellite communications must pass through Indian earth station gateways, which act as key checkpoints for data flow.

Starlink has accepted these conditions and is preparing for a phased rollout, beginning with underserved regions. Subject to final spectrum allocation and infrastructure readiness, commercial services are expected to launch by December 2025.