Starlink’s India launch is nearing after satellite spectrum rules get approval

India is moving closer to utilising satellite communication services, such as Elon Musk's Starlink. The Digital Communications Commission (DCC) has reportedly approved the majority of the Telecom Regulatory Authority of India's (TRAI) recommendations regarding satellite spectrum. This move paves the way for the government to allocate spectrum to satellite communication companies for commercial services in the country.

According to reports from various famous publications, the DCC approved TRAI's recommendations last week. The DCC is the highest decision-making body within the Department of Telecommunications (DoT). The DoT is expected to submit the proposal to the Cabinet for final approval.

Satellite communication services—including Starlink, Amazon Leo, Jio Satellite Communications, and Eutelsat OneWeb—still require security clearances to begin operations in the country.

Satellite communication spectrum framework approved

The decision reportedly includes a spectrum usage charge of 5% of Adjusted Gross Revenue (AGR) for satellite communication services, with a lower effective rate of 4% for operators serving designated rural and remote areas. The DCC's decision comes nearly eight months after TRAI submitted its response—in December—to inquiries raised by the DoT regarding satellite spectrum. TRAI had issued its original recommendations in May of last year. Initially, the TRAI had recommended a spectrum usage fee of 4% of Adjusted Gross Revenue (AGR), along with an additional levy of 500 rupees per urban subscriber annually for non-geostationary orbit (NGSO) satellite services. Subscribers in rural and remote areas would be exempt from this additional levy.

Reports indicated that the 4% AGR fee proposed by the TRAI—for both GSO and NGSO operators—would be subject to a minimum annual spectrum charge of 3,500 rupees per MHz. During consultations, Starlink and Amazon’s Kuiper Systems had urged the TRAI to keep the spectrum fee below 1% of AGR, with no additional charges. However, the Department of Telecommunications (DoT) rejected the per-subscriber fee proposed by the TRAI, arguing that it would be difficult to distinguish between rural and urban users. It also dismissed a proposal to subsidise fixed satellite terminals for users in rural and remote areas through the Digital Bharat Nidhi fund. The TRAI had maintained that the initial cost of the equipment—typically ranging from 20,000 to 50,000 rupees—could act as a barrier in areas with no coverage or insufficient coverage.

Final approvals still pending for Starlink and other companies

Despite approval from the DCC, security clearance remains a key factor for any commercial launch. Authorities noted that holders of Global Mobile Personal Communication by Satellite (GMPCS) licenses must still complete security demonstrations and address concerns raised by the Ministry of Home Affairs and other agencies.

Reportedly, once approved, a single satellite constellation could provide between 10,000 and 20,000 connections in locations like Delhi, compared to the 5 million existing broadband connections. Satellite communication (Satcom) services, such as Starlink, target areas where fibre deployment is difficult and tower infrastructure is scarce, rather than densely populated urban centres. These services utilise low-Earth orbit satellites capable of providing high-speed, low-latency connections in low-density areas.

Starlink faces an additional challenge due to its 100% foreign direct investment structure. The company has just asked IN‑SPACe, the space regulator in India for permission for its Gen 2 constellation. The request covers 30,000 satellites that will orbit close to Earth and will provide direct‑to‑device connectivity. Elon Musk still wants to bring Starlink to India and Starlink remains a focus for Elon Musk. Last month, Musk wrote on X: "Starlink would help India's underserved sectors, especially in rural areas."

Currently, only geostationary orbit-based fixed satellite networks, such as Hughes and Nelco, are permitted to offer services in India, with spectrum usage fees hovering around 3–4% of Adjusted Gross Revenue (AGR).

ABOUT THE AUTHOR

Kahekashan

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Kahekashan is a passionate technophile with a keen eye for cutting-edge gadgets, emerging technologies, and everything in the digital realm. Raised in a Defence family with strong values and a background in literature, she has consistently pursued excellence in every endeavour. Her last full-time assignment involved content writing with the Indian School of Business.

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