The Telecom Regulatory Authority of India (TRAI) is likely to push for satellite internet services to be initially limited to mobile dark zones — regions lacking terrestrial network coverage. This move comes as Bharti Airtel and Reliance Jio establish partnerships with SpaceX’s Starlink, prompting the regulator to accelerate its recommendations on satellite spectrum pricing, according to sources cited by the Financial Express.
Telecom operators, including Jio and Airtel, have raised concerns that international satellite service providers like Starlink and Amazon Kuiper could potentially capture urban market share without participating in traditional spectrum auctions. By steering satellite services toward unserved areas, TRAI aims to address these apprehensions while ensuring satellite broadband serves its primary purpose of connecting remote locations where fiber and wireless networks are not viable.
Technological Challenges & Regulatory Flexibility
Currently, satellite signals cannot be directly received on standard mobile devices, and satellite broadband remains significantly costlier than conventional mobile services. However, with ongoing technological advancements, this could change. TRAI, therefore, seeks to maintain flexibility in its regulatory approach to adapt to future developments in satellite communications.
India’s satellite broadband landscape is increasingly competitive, with four key players—Eutelsat OneWeb, Jio-SES, Starlink, and Amazon Kuiper—vying for market entry. While OneWeb and Jio-SES have already secured regulatory approvals, Starlink and Kuiper are still awaiting the necessary clearances.
Government Support For Rural Connectivity
To make satellite broadband accessible in rural areas, government subsidies may be necessary. The Digital Bharat Nidhi initiative, which funds rural connectivity projects, could be a potential mechanism for supporting affordability in underserved regions.
Another emerging technology under consideration is Starlink’s direct-to-cell service, which functions as a space-based cellular tower. Analysts suggest that instead of competing with traditional mobile networks, this technology could complement them by acting as a roaming partner for Jio and Airtel in remote areas.
However, since this requires access to telecom spectrum to ensure compatibility with existing smartphone networks, regulatory approvals and structured agreements with telecom operators would be essential.
Industry Leaders Call For Regulatory Parity
Bharti Enterprises chairman Sunil Bharti Mittal has previously emphasized that satellite technology should operate under the same regulatory framework as telecom services. During the India Mobile Congress, he joined Reliance Industries’ chairman Mukesh Ambani in advocating for stricter licensing requirements for satellite providers aiming to serve urban consumers.
“If satellite companies want to serve elite urban consumers, they must acquire telecom licences, purchase spectrum and pay licence fees just like telecom operators,” Mittal had stated.
According to Morgan Stanley, satellite communications have the potential to generate annual revenues of $19 billion (approximately Rs 1.6 lakh crore) by tapping into India’s underserved broadband market. With only 3 per cent of the country’s nearly 299 million households currently using fixed broadband, the scope for growth remains immense.
