The Digital Communications Commission (DCC) approved most recommendations by the Telecom Regulatory Authority of India (TRAI) on satellite spectrum allocation on September 3, moving Starlink, Eutelsat OneWeb, and Jio Satellite Communications closer to launching commercial services in India, medianama.com reported. The Department of Telecommunications (DoT) will now seek Union Cabinet approval for the spectrum pricing and allocation framework.
The DCC backed a five-year spectrum assignment period with a possible two-year extension. TRAI had recommended a 4% annual spectrum fee on adjusted gross revenue (AGR), but the DoT favored a 5% levy. Rural and remote services may face a reduced 4% charge. TRAI also proposed a minimum annual spectrum charge of Rs 3,500 per MHz and an additional Rs 500 per subscriber per year for non-geostationary orbit operators serving urban areas. The DoT did not accept the urban subscriber fee proposal.
This approval is a key step toward enabling satellite internet services in India, which could improve connectivity in underserved rural and remote areas. The spectrum allocation framework aligns with global trends where satellite operators pay fees based on revenue and spectrum usage. The decision also addresses the high cost of user terminals, which can range from Rs 20,000 to 50,000, by proposing financial support in rural regions.
Commercial satellite services cannot begin until the government formally assigns spectrum and grants security clearances. The DoT’s submission to the Union Cabinet will determine the final pricing and allocation terms, with the next government session scheduled to consider the proposal shortly after the DCC’s September 3 meeting.