NDTV Profit Explainer: What TRAI’s Satellite Spectrum Rules Mean for Starlink, OneWeb and Amazon Kuiper
TRAI’s spectrum allocation framework and DoT’s GMPCS security guidelines create a regulatory path for Starlink, OneWeb and Amazon Kuiper to expand satellite broadband services across India.
India has moved closer to opening its satellite broadband market. The Telecom Regulatory Authority of India has released a spectrum allocation framework, and the Department of Telecommunications has finalised security norms under the Global Mobile Personal Communication by Satellite guidelines. These changes could allow companies such as Starlink, OneWeb and Amazon’s Project Kuiper to launch services in India, including in areas where fibre or mobile networks are not feasible.
Here is what the policy changes mean for the satellite broadband sector and how they differ from traditional internet services.
What has TRAI announced and why does it matter?
On May 9, TRAI issued recommendations on how satellite operators will be assigned spectrum and the associated charges. These proposals are designed to support the commercial rollout of satellite broadband services across India, particularly in rural and underserved regions.
How do these proposals fit into the government’s broader telecom policy?
TRAI’s recommendations follow the DoT’s announcement of GMPCS security rules. These norms require satellite services in India to operate within a framework that ensures traceability, legal compliance and infrastructure localisation. The objective is to meet national security requirements and regulatory standards.
What are GMPCS norms and how do they affect operators like Starlink?
GMPCS norms outline security and operational conditions for satellite service providers. These include lawful interception, geofencing, data localisation and compliance at the user terminal level. Companies such as Starlink must comply with these rules before being granted licences to operate in India.
What does TRAI propose for spectrum allocation?
TRAI has recommended that spectrum for satellite communication be allocated administratively rather than through auctions. This approach reduces initial costs for both global and domestic operators.
What are the key pricing components in TRAI’s proposal?
Administrative Allocation: Spectrum will be allocated based on a fixed government fee, not via auction.
4% SUC on AGR: A Spectrum Usage Charge of 4% on Adjusted Gross Revenue, similar to terrestrial telecom providers.
Rs 3,500 per MHz Annual Fee: A base fee to ensure spectrum is used efficiently.
Rs 500 per Urban Subscriber Fee: Applicable only to non-geostationary satellite orbit (NGSO) operators like Starlink and OneWeb; rural subscribers are exempt to promote affordability.
How do these proposals affect rural and urban rollouts?
The pricing structure is designed to incentivise rural coverage. Rural users are exempt from the Rs 500 subscriber fee, while urban deployments carry a higher cost. This may balance service availability with affordability and ensure broader public benefit.
What are the next steps for satellite operators in India?
With regulatory and security frameworks in place, satellite providers now have a defined path to enter the Indian market. Their focus will shift to infrastructure deployment, local compliance, and customer acquisition in a large and under-connected market.
