The Centre is considering capping the number of subscribers that each satellite broadband operator, Starlink, Amazon Kuiper, Eutelsat OneWeb, and Jio-SES, can serve in India, officials familiar with the matter told Economic Times.
The move, if formalised, would mark a significant tightening of India’s nascent satcom regime. It stems from mounting concerns among incumbent telecom operators who fear that satellite players could use existing licences meant for broadband connectivity to make a quiet push into the lucrative retail mobile market, effectively eroding telcos’ main revenue stream.
Why telcos are worried
For operators like Jio, Airtel, and Vodafone Idea, the nightmare scenario is this: satellite firms leverage their permits to bypass spectrum levies and regulatory conditions that terrestrial carriers must shoulder. With emerging direct-to-mobile (D2M) satellite technology, that threat no longer feels hypothetical, it could allow Starlink and others to beam internet services straight to smartphones, competing head-on with mobile operators.
“Telcos see this as a backdoor entry into their turf without paying the same regulatory dues,” one sector expert told ET.
The proposed framework
Officials aware of the draft framework said the Department of Telecommunications (DoT) is exploring rules that would tie subscriber capacity to the operational permits granted.
- Satcom firms will be required to declare capacity and per-user speed upfront.
- The subscriber ceiling will be derived from that data.
- If a company crosses the limit, it must seek fresh permission, and accept new terms, including revised spectrum pricing.
“This basically means that the current spectrum allocation for satcom services will be given for a certain set of customers, and when the number breaches the mark, the terms and conditions for spectrum, including pricing, would be different,” an official told ET.
Spectrum, pricing, and regulatory stance
The Telecom Regulatory Authority of India (Trai), in its recommendations, had suggested that satcom spectrum be allocated administratively for five years (extendable by two). On pricing, Trai had proposed a 4% levy on adjusted gross revenue (AGR), relatively light compared to what terrestrial operators pay, arguing that satellite services were still nascent and not directly competing.
However, the DoT appears more aggressive. It wants flexibility to revise pricing and conditions even before the five-year window ends if technology evolves or if operators expand into services beyond basic data and internet.
The bigger picture: A looming turf war
The real flashpoint is D2M technology. By bypassing towers and terrestrial networks, it could allow satellite operators to connect users directly, undermining telcos’ dominance in mobile broadband. Unlike carriers, satcom firms don’t currently bear the same levies or licence fees, creating what operators call an uneven playing field.
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