Satellite players opposes DoT’s satellite network framework

Broadband India Forum (BIF), which represents companies such as Hughes, OneWeb, Nelco and Viasat has in its submission to the Telecom Regulatory Authority of India (TRAI) cited that satellite communications should be treated as an independent telecom service instead of being subsumed under a network-layer authorisation model, as in the proposed model. It added that satellite communications differ fundamentally from terrestrial telecom networks in terms of technology, spectrum assignment, deployment economics, international coordination requirements and service delivery models, warranting a dedicated regulatory framework.

The intervention adds a new dimension to an ongoing tussle that has already exposed divisions among telecom operators and satellite service providers over the future structure of the country’s satcom market. The dispute centres around a DoT proposal under the Telecommunications Act, 2023, to create a new Satellite Communication Network authorisation that would separate network and service layers, permitting infrastructure providers to hold spectrum without being the service provider themselves. As part of the construct, SCN providers shall be able to operate satellite communication networks and offer “SCN as a Service” (SCNaaS) to licensed telecom operators.

Infrastructure Sharing

The proposal seeks to encourage shared satellite infrastructure. Instead of each operator deploying its own satellite systems, an SCN provider could establish satellites, gateway earth stations and related infrastructure and lease capacity to multiple telecom operators, similar to the role played by tower companies in terrestrial telecom networks. Proponents say that such a model would reduce duplication of expensive infrastructure and accelerate satellite connectivity deployment, particularly in rural and underserved regions.

However, the satcom industry argued that the proposed framework departs from the traditional telecom model in which the entity providing services to end consumers also holds spectrum and remains accountable for its use. According to the body, allowing SCN entities to hold spectrum while relying on separate service licensees for customer-facing operations could create ambiguity around ownership, control and regulatory responsibility, particularly in relation to rollout obligations.

The forum also warned that making satellite operators dependent on commercial arrangements with telecom service providers could raise entry barriers for specialised satellite players and affect competitive neutrality. Additionally, it has flagged potential operational and regulatory complications arising from spectrum-sharing arrangements, particularly for emerging Direct-to-Device (D2D) satellite services.

“The proposed SCN authorisation appears to be in dissonance with both the Indian Space Policy and the legislative intent of the Telecommunications Act, which view and treat Satellite Communications as a ‘Service’ and not merely as a ‘technology’,” said T.V. Ramachandran, President, BIF.

Deep Divides Within

The latest submission also point to differences within the telecom industry itself. Reliance Jio has opposed the creation of a separate SCN authorisation, arguing that existing Satellite Earth Station Gateway (SESG) and Virtual Network Operator (VNO) authorisations already provide adequate separation between network and service layers.

In its submission to TRAI, Jio warned that permitting SCN entities to establish networks and potentially hold spectrum could create regulatory imbalance, licensing arbitrage and a non-level playing field. The company said that SCN entities could end up operating critical communications infrastructure under lighter financial and regulatory obligations than telecom operators, while telecom companies continue to bear licence fees, compliance requirements and security obligations.

In contrast, Bharti Airtel and Vodafone Idea (Vi) have broadly backed the infrastructure-sharing framework, while seeking safeguards that preserve telecom operator control over subscribers and customer-facing services. Airtel has proposed a light-touch network-layer authorisation under which SCN providers would receive feeder-link spectrum, while user-link spectrum remains with telecom operators.  Vi has taken a similar position, supporting the early rollout of D2D satellite services.

While moving forth, the regulator’s recommendations on the proposed SCN framework are expected to determine whether satellite communications evolve primarily as a telecom-led extension of existing networks or emerge as an independent service ecosystem in India.