According to the report, he was addressing questions after TRAI on Friday recommended that satellite communication companies, including Starlink, pay 4 percent of their adjusted gross revenue (AGR) as spectrum charges to the government. This levy is steeper than what satcom firms had been lobbying for, but TRAI maintained that the charges are reasonable and aligned with policy goals.
In a presentation accompanying the announcement, the regulator highlighted the significant differences in network capacity and operational scale between satellite and terrestrial services. It noted that satcom will primarily serve remote and underserved regions where traditional mobile networks are commercially unviable, thus playing a complementary role in India’s digital infrastructure.
TRAI reiterated that the growth of satellite services will not undercut terrestrial telecom operations, but rather support broader connectivity objectives in the near term.
Also Read: TRAI Proposes Administrative Allocation of Satcom Spectrum With Five-Year Licensing Framework
Concerns Over Unfair Competition
India’s telecom regulator on Friday released recommendations on the spectrum allocation for satcom services in the country. These long-awaited recommendations will now be vetted by the Digital Communications Commission and subsequently presented to the Cabinet for ratification, paving the way for the commercial rollout of satellite internet services in India.
TRAI Chairman AK Lahoti said there would be no upfront charge or allocation price for satellite spectrum. Telecom operators such as Airtel, Jio and Vodafone Idea had pushed for the spectrum to be auctioned, warning that administrative allocation could allow satcom companies to offer similar services using cheaper airwaves which wouldn’t be a level playing field.
To this, Lahoti reportedly rejected the concern, stating that TRAI had found that the two technologies were different and satellite could only be complementary.
“It’s not factually correct that satcom services are competing with terrestrial services because there is a huge difference between the capacity of the terrestrial network and the satellite network,” he said, according to an ET report.
The regulator also rejected the argument that satcom firms might bypass rural areas for urban ones, asserting that such a shift is not technically feasible.
“The entire capacity of one region can’t be shifted to another,” he reportedly said. “If they (satcom) firms do not offer services in rural areas, the capacity will (be unutilised) but it can’t be shifted to urban areas.”
Also Read: Starlink Secures LoI for GMPCS Licence, Nears India Entry: Report
Satcom Players Await Spectrum Allocation
TRAI’s recommendations came a day after Starlink received a Letter of Intent (LoI) from the Department of Telecommunications (DoT) for a satcom licence. It now requires clearance from the space regulator and the allotment of airwaves before launching services. Bharti-backed Eutelsat OneWeb and Jio-SES have already received all necessary clearances to launch commercial satellite broadband services and are awaiting spectrum allocation.
Industry Reactions
According to the report, Pranav Roach, president, Hughes Network Systems India, said the additional spectrum charge for urban areas will make satellite broadband services unaffordable and non-competitive in those markets.
“The recommendation seems clearly aimed at giving mobile broadband players a definite competitive edge versus satcos in India’s most lucrative telecom markets,” he reportedly said.
To deter spectrum hoarding and encourage efficient use, TRAI has recommended minimum spectrum charges based on the quantum assigned. This measure is expected to promote optimal usage and ensure the early rollout of services.
Also Read: India Tightens Security Norms for Satellite Communication Services
5G FWA and Satcom FSS
TRAI reportedly clarified that satellite-based broadband will remain complementary to terrestrial 5G Fixed Wireless Access (FWA) networks in the near to medium term. It noted that the network capacity of major NGSO-based FSS providers over India (0.6–3 Tbps) is far lower than the approximately 168 Tbps capacity offered by terrestrial mobile operators.
For Mobile Satellite Services (MSS), which cater to niche segments such as emergency communication, disaster response, and aviation, TRAI reiterated that their limited spectrum and low traffic capacity make them non-comparable to terrestrial mobile networks. Therefore, no competitive overlap is expected in the foreseeable future, the report added.
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