Starlink launch in India imminent following satcom spectrum rules clearance

The Digital Communications Commission (DCC) has reportedly approved TRAI's recommendations for satellite communication services. This brings services like Elon Musk's Starlink a step closer to starting India operations with final approvals pending.

In Short

• DCC approved most TRAI recommendations on assigning satellite spectrum for services
• The proposal will now go to the Cabinet for final approval
• Satcom operators like Starlink still need security clearances

India is getting closer to using satellite communication services – such as Elon Musk’s Starlink. As per reports, the Digital Communications Commission (DCC), has approved most of the Telecom Regulatory Authority of India (TRAI)’s recommendations on satellite spectrum. This move clears the way for the government to assign spectrum to satcom companies for commercial services in India.

According to reports from Moneycontrol and Economic Times, DCC gave approval to TRAI’s recommendations last week. The DCC is the apex decision-making body of the Department of Telecommunications (DoT). The DoT is expected to take the proposal to the Cabinet for final approval.

Satcom services including Starlink, Amazon Leo, Jio Satellite Communications, and Eutelsat OneWeb, still need security clearances to begin operations in the country.

Satcom spectrum framework cleared

As per reports, the decision includes a spectrum usage charge of 5 per cent of adjusted gross revenue (AGR) for satellite communication services, with a lower effective charge of 4 per cent for operators serving designated rural and remote areas. The DCC’s decision comes nearly eight months after TRAI sent its response in December to queries raised by the DoT on satellite spectrum. TRAI had issued its original recommendations in May last year.

TRAI had originally recommended a 4 per cent AGR spectrum usage charge, along with an additional levy of Rs 500 per urban subscriber each year for non-geostationary orbit, or NGSO, satellite services. Rural and remote subscribers were to be exempt from that extra levy.

Reports said the 4 per cent AGR charge proposed by TRAI for both GSO and NGSO operators would be subject to a minimum annual spectrum charge of Rs 3,500 per MHz. During consultations, Starlink and Amazon’s Kuiper Systems had urged TRAI to keep the spectrum charge below 1 per cent of AGR with no other charges.

However, the DoT rejected the per-subscriber levy proposed by TRAI, saying it would be difficult to distinguish between rural and urban users. It also rejected a proposal to subsidise fixed satellite terminals for targeted rural and remote users through the Digital Bharat Nidhi. TRAI had argued that the one-time hardware cost, typically between Rs 20,000 and Rs 50,000, could be a barrier in unserved and underserved areas.

Final approvals still pending for Starlink and others

Even with the DCC approval, security clearance remains central to any commercial launch. Officials said Global Mobile Personal Communication by Satellite licence holders still need to complete security demonstrations and address concerns raised by the Ministry of Home Affairs and other agencies.

Once approved, reports add, a single satellite constellation may offer only 10,000-20,000 connections in places such as Delhi against 50 lakh broadband connections. Satcom services like Starlink are aimed at areas where laying fibre is difficult and where towers are sparse, rather than dense urban clusters. These services use low-earth orbit satellites that can provide high-speed connections with low latency in areas with low density.

Starlink faces an additional issue because of its 100 per cent foreign direct investment structure. The company recently reapplied to India’s space regulator, IN-SPACe, for approval for its Gen 2 constellation, seeking authorisation for nearly 30,000 low-Earth-orbit satellites, including direct-to-device capability. Elon Musk has continued to show interest in bringing Starlink to India. Last month, Musk wrote on X, "Starlink would help the least served in India, especially in rural areas."

Currently, only geostationary orbit-based fixed satellite networks such as Hughes and Nelco are allowed to offer services in India with spectrum charges of around 3-4 per cent of AGR.

- Ends