New Delhi, Nov 5 The Telecom Regulatory Authority of India (TRAI) on Thursday recommended a new authorisation category for satellite network providers, who would supply network capacity to telecom operators and other eligible service providers but would not be allowed to serve consumers directly.
The recommendations, sent to the Department of Telecommunications (DoT) for approval, open the door to direct-to-device (D2D) connectivity, using both satellite and terrestrial mobile spectrum, potentially reshaping India’s satcom market by enabling deeper partnerships between satellite operators and traditional telecom companies.
Under the recommended framework, authorised satellite communication network (SCN) providers can offer ‘Satellite Communication Network as a Service’ or SCNaaS to eligible service providers. Any licensee permitted to offer satellite-based services should be able to buy such capacity. The authorisation would cover the entire country for a maximum of 20 years, renewable for up to 20 years.
Entities holding existing licences, including unified service, access, internet, long distance, commercial VSAT closed user group, GMPCS and satellite gateway licences, could also provide SCNaaS, provided they meet the eligibility criteria and the technical, roll-out and security conditions of the new authorisation.
These recommendations “envision the development of a robust and competitive satellite communication ecosystem in India,” the regulator said.
“The recommended framework for SCN provider authorisation would enable efficient utilisation of satellite network infrastructure and spectrum through SCNaaS and facilitate innovative satellite-based services, including D2D connectivity using MSS as well as IMT spectrum,” TRAI said, adding that this would provide greater flexibility to service providers in accessing satellite network resources and support the expansion of satellite-based connectivity across the country.
The DoT had asked TRAI on July 3, 2025 to frame terms for a `Satellite Communication Network Provider Authorisation’ under Section 3(1)(b) of the Telecommunications Act, 2023, including spectrum for feeder links and user links. TRAI issued a consultation paper on April 8, 2026, received comments and counter comments from stakeholders and subsequently held an open house discussion on July 2.
SCN providers could seek fixed satellite service (FSS) spectrum for feeder links, and FSS and mobile satellite service (MSS) spectrum for user links, from the government. Feeder link spectrum would be assigned administratively. For user links, the provider must show that the service offered by its partner falls within the First Schedule of the Telecommunications Act.
Spectrum would be assigned for up to five years, extendable by two years. Terms and pricing would stay valid for five years from the date the policy is notified. Any later revision would apply to all SCN providers, including existing ones.
SCN providers could also use spectrum held by partnering service providers to offer SCNaaS to them, with the right to use the spectrum remaining with the partner.
TRAI has also recommended allowing mobile phones to connect directly to satellites using L-band and S-band spectrum, with telecom operators permitted to access satellite network capacity to offer such services to customers. It has suggested that the government encourage smartphone manufacturers to incorporate the necessary satellite communication modules in future handsets sold in India.
For satellite-to-phone connectivity using terrestrial mobile spectrum, TRAI has recommended permitting such services without waiting for the outcome of the World Radiocommunication Conference in 2027, subject to conditions that they do not cause harmful interference to existing services or claim protection from interference. Any subsequent government decision following the international conference would apply to these services.
Such services would be allowed only if one or more access service providers, together holding the relevant IMT channel across all 22 licensed service areas, agree to let the SCN provider use it. The 600, 700, 800, 900, 1800 and 2100 MHz bands could be used. TRAI also said the national frequency allocation plan should be amended to add MSS as a secondary service in these bands, and limits on aggregate signal strength should be set to protect existing services.
TRAI said it followed the principle of regulatory parity between vertically integrated service models and unbundled shared network models. It has recommended an authorisation fee of 8 per cent of adjusted gross revenue, with no minimum fee.
Spectrum charges would be based on adjusted gross revenue, with an urban-rural differential for non-geostationary FSS, and an annual minimum of Rs 3,500 per MHz. No additional spectrum charge would apply to telecom operators for using their IMT spectrum for D2D services.
Service providers could deduct SCNaaS charges paid to SCN providers from their applicable gross revenue, subject to documentation.
The entry fee would be Rs 37.5 lakh, with an initial guarantee of Rs 45 lakh, minimum equity and net worth of Rs 60 lakh each, and an application fee of Rs 10,000. If the Telecom Department accepts the recommendations, India’s satellite market would split into network and service layers.
Satellite network providers would build infrastructure and sell capacity to licensed service providers, but could not serve consumers directly. Telcos such as Jio, Airtel and Vodafone Idea could buy that capacity, deduct the charges from their applicable gross revenue, and would hold a say in satellite-to-phone services, which need operators holding the relevant mobile spectrum across all 22 service areas to agree.
Existing licensees could also supply capacity, so companies could straddle both layers.
(PTI News)
