The Department of Telecommunications (DoT) in India is planning to introduce new regulations that could impose a cap on the number of subscribers any satellite communication company can serve. This move is being considered to address concerns from existing telecom operators, who argue that satellite companies such as Starlink, Amazon Kuiper, Eutelsat OneWeb, and Jio-SES might leverage their permits to gain a large retail customer base, potentially impacting telcos’ revenues. Under the proposed framework, the subscriber limit for each satcom company would be determined based on network capacity and per-user speed submitted for securing operational permits. If a satcom operator exceeds its allotted subscriber limit, it would need to seek new permission from DoT, which could also revise terms and spectrum pricing, sometimes even before the standard five-year review cycle if new technologies arise or services expand beyond internet and data.
These measures reflect a shift towards a stricter regime than earlier Telecom Regulatory Authority of India (TRAI) recommendations, which sought administrative spectrum allocation and low fees for satcom services, seeing limited overlap with terrestrial telco competition. The emergence of technology for direct-to-mobile satellite connectivity, however, has heightened concerns among incumbent operators about revenue cannibalization. To further expand subscriber capacity, satellite firms must also obtain approval from IN-SPACe, the Indian National Space Promotion and Authorization Centre. This policy aims to ensure competitive balance and regulatory oversight as India’s satellite broadband market develops, with the government currently allocating spectrum only for offering data and internet, not direct-to-mobile satellite services.
CT Bureau