The Department of Telecommunications (DoT) has said that spectrum sharing for satellite communications (satcom) will require a stricter regulatory framework, given the possibility of interference as multiple players enter the market. While no incumbent operator exists today, officials told Fe that the rules cannot be framed only for current conditions.
Why stricter rules are essential: The interference challenge
“There are technical issues around interference—what happens if there is an incumbent operator, for instance. While there is no incumbent operator now, regulations have to be designed keeping future scenarios in mind. This is special because it’s a shareable spectrum, so we have to make a lot more rules to ensure that interferences do not occur,” a senior DoT official said on condition of anonymity.
The official added that no subsidy or government intervention is planned to offset costs. “Eventually, it’s the customer who will be affected. It may not be the same service or the same cost as telcos. Both mobile and satellite broadband deliver connectivity, but the mechanism is different. A subsidy or market intervention is not planned, because prices are expected to come down naturally over time, much like in the solar sector.”
The Telecom Regulatory Authority of India (TRAI) has proposed that satellite spectrum be assigned through administrative allocation for an initial term of five years, extendable by another two years, with operators required to pay an annual levy equivalent to 4% of their adjusted gross revenue.
Industry view: Pricing, allocation, and coexistence
Players argue that satcom pricing is already on a downward trajectory, given new satellite constellations and scale.
“With administrative licensing now enshrined in the Telecom Act, India has sent a strong signal to investors. This clarity will accelerate deployment and bring down costs through scale. The advent of High Throughput Satellites (HTS) and NGSO constellations is fundamentally reshaping price dynamics. Over the next few years, over 150 Tbps of additional capacity will be in play, which is naturally driving down per-user costs.” Anil Prakash, Director General of the Satcom Industry Association (SIA-India) said.
Industry voices highlight that satcom and terrestrial telecom services should be seen as complementary, not competitive. Technology providers also see coexistence with telcos as a way to spread costs and improve affordability.
“Any service provider, whether a major telecom operator or large cable player—will view satellite communication both as a complementary offering and as a competitor. The future is about coexistence and integration. By joining hands, telcos and satcom providers can create stronger value propositions while lowering the total cost of ownership through shared infrastructure and services.” Murali Sampath, CTO and Vice President, R&D at Alphion Corporation.