India’s satellite internet ambitions are gathering speed, but a regulatory rift threatens to stall the take-off. With players like Bharti Airtel-backed Eutelsat OneWeb, Starlink and Jio Satellite Communications Limited (JSCL) preparing to beam broadband from space, the country’s spectrum allocation policy has emerged as a critical flashpoint.
While satellite internet holds potential for bridging the rural-urban digital divide, the debate is heating up over pricing, infrastructure parity, and fair competition. Telcom and satellite operators are locked in a high-stakes face-off, with the Telecom Regulatory Authority of India (TRAI) caught in the middle.
The satellite spectrum allotment in India is currently undergoing finalisation, and the Department of Telecommunications (DoT) is expected to release a draft soon for stakeholder feedback.
Siddhartha Tipnis, partner for TMT consulting at Deloitte, told AIM that most players are expected to provide fixed broadband, mobile and messaging services in these areas, followed by customer premise presence post Lawful Interception and Monitoring (LIM) demonstrations.
Space Wars Begin on Earth
TRAI’s current recommendation proposes administrative spectrum allocation, likely on a first-come, first-served basis, for satellite services instead of auctioning it, like in the case of terrestrial spectrum. Tipnis added that administrative spectrum allocations are expected in the 500 MHz band—Ka and Ku bands.
This is alongside an annual charge of 4% of adjusted gross revenue (AGR) or ₹3,500 per MHz, whichever is higher. Moreover, Satcom operators must pay an additional ₹500 per subscriber in urban areas and an 8% AGR licence fee.
Telecom operators, under the Cellular Operators Association of India (COAI), have called the pricing framework non-transparent and unfair. They argue that satellite services are not mere complements but competitors, especially in high-demand data markets. With spectrum auctions costing them over ₹5 trillion cumulatively, telcos say satellite operators are being given regulatory leniency without similar financial obligations.
Tipnis echoed this concern from the telecom industry, stating that a new technology may target the same customers without the same obligations. He added that while satellite services might be better suited for hard-to-reach geographies, regulators must balance innovation with fairness.
Airtel, which has hundreds of satellites in orbit and a ground infrastructure ready in Gujarat and Tamil Nadu, is awaiting the final government nod. Its satellite internet offering is designed to target hilly terrains, forest belts and coastal areas, zones where fibre and mobile networks struggle. Starlink, which recently secured a licence from DoT, is similarly poised to enter the market.
According to the DoT’s Global Mobile Personal Communication by Satellite (GMPCS) portal, Starlink, Eutelsat OneWeb, and JSCL have been granted authorisations to offer satellite-based connectivity in India.
These licenses allow them to deploy ground stations and begin commercial services once spectrum and operational clearances are finalised. The portal also outlines compliance requirements under India’s regulatory framework, ensuring that satellite players adhere to national security, licensing, and user identification norms.
Who Gets to Close the Digital Divide?
With 70% of rural Indian households still lacking reliable internet, the potential for satellite connectivity is vast. The government’s National Broadband Mission aims to bring broadband to every corner of the country, and satellite internet could be crucial for reaching underserved regions.
Airtel and Starlink’s solutions could plug coverage gaps where terrestrial services can’t reach. However, device affordability may be a roadblock. The cost of satellite terminals currently ranges between ₹20,000 and ₹50,000, compared to an average of ₹5,000 for terrestrial broadband devices.
Amazon’s Project Kuiper is also reportedly preparing to enter India’s satellite broadband space. The company plans to deploy over 3,200 low-earth orbit satellites globally. The company has reportedly applied for a GMPCS licence and is in early-stage discussions with Indian authorities for market entry. Its entry could intensify competition and potentially drive down hardware and service costs for rural users.
TRAI’s proposal includes possible subsidies through the Digital Bharat Nidhi fund to reduce upfront hardware costs in rural areas. Telcos have opposed this, stating they already contribute 5% of their AGR to the fund and question why it should be used to subsidise competitors.
Meanwhile, Tamil Nadu’s government has announced a state-backed plan to offer 100 Mbps connectivity for ₹200 per month by the end of 2025, a stark contrast to the current considerably higher satellite pricing. This suggests that satellite internet may initially find its footing with enterprise customers such as logistics, maritime, defence and railways, before trickling down to households.
Tipnis noted that while satellite services promise coverage even in the deepest parts of India, they are unlikely to be a game-changer for the mass B2C market due to affordability constraints. “You will get coverage and you will get market, no doubt, but whether it’s going to acquire subscribers disruptively, probably not,” he said, pointing instead to high-impact enterprise use cases like oil and gas exploration, emergency services, and manufacturing in remote areas.
Are Telcos and Satellites Really Rivals?
The central tension lies in whether satellite internet will complement or compete with terrestrial networks. While TRAI maintains that satellite services are better suited for niche rural deployment and hence shouldn’t be equated with mobile networks, telcos disagree.
They cite upcoming constellations like Starlink and Kuiper, which claim planned capacities of 51 Tbps and 83 Tbps over India, respectively. This is greater than the current terrestrial traffic of 23 billion GB monthly, and they argue that this signals direct competition. Broadband India Forum (BIF), representing satellite players, disputes these projections, stating they’re speculative and years away from full-scale realisation.
Recently, Chandra Sekhar Pemmasani, Union minister of state for communications, reportedly stated that Starlink is not positioned to compete with India’s telecom providers, but instead serves as a backup for hard-to-reach areas.
He noted that with setup costing around ₹33,000, with monthly charges of ₹3,000, Starlink remains out of reach for most rural users, especially as BSNL offers broadband plans starting at ₹400. Pemmasani also pointed out that BharatNet has already extended fibre connectivity to nearly all gram panchayats, leaving only the most remote locations where satellite may be necessary.
Tipnis highlighted emergency response as a critical and under-discussed use case for satellite networks. “In a crisis situation, if everybody is calling each other, the telecom network gets choked. Having an alternative service dedicated to emergency communications raises quality without interfering with normal mobility,” he explained.
The Road Ahead Is Crowded
Looking ahead, the regulatory outcome of this spectrum debate will define the trajectory of India’s satellite internet sector. TRAI believes that the ecosystem is nascent, and assigning long-term, auction-priced spectrum would stifle growth. Telcos, however, argue that a level playing field demands parity in cost, expectations, and obligations.
Starlink is also testing direct-to-cell technology globally, which allows phones to communicate with satellites directly. If successful in India, this could disrupt the existing mobile network model entirely. However, it would require intricate coordination with existing telecom infrastructure and regulatory approval.
It’s not just Starlink, even BSNL is pushing. On June 18, BSNL announced a soft launch in Hyderabad of its Quantum 5G FWA, a SIM‑less, indigenous fixed‑wireless‑access (FWA) service. This is built on BSNL’s direct-to-device platform, meaning no physical SIM is required. This makes it the first Indian operator to showcase this service, offering enterprise-grade connectivity at ₹999/month, with pilots expanding to Bengaluru, Pune and other cities by September 2025.
While FWA services like JioAirFiber and Airtel Xstream offer stiff competition in semi-urban areas, satellite services could become essential in areas with terrain or population density challenges. But to gain scale, satellite internet must meet India’s twin demands of affordability and adaptability.