While the government is pushing for a new Satellite Communication Network (SCN) authorisation that would allow infrastructure providers to hold spectrum, the Telecom Regulatory Authority of India (TRAI) has maintained a cautious, service-led view where spectrum remains with telecom operators.
However, the regulator has initiated a fresh consultation on the proposal at the government’s request, signalling a willingness to re-examine its earlier position.
In addition, the telecom regulator, in a consultation paper released on Wednesday have reiterated its lower pricing recommendation, highlighting its preference for a growth-oriented approach in what remains a nascent market in India.
“For NGSO based FSS, wherein the Authority had recommended rate of 4% of AGR with an additional spectrum charge of INR 500 per urban subscriber, DoT suggested a Spectrum Charge of 5% (instead of 4%), with a discount of 1% if a certain percentage (say 5%) of overall customers enrolled in the year are from borders/ hills/ island areas of the country. The Authority, after examination of the reference, had reiterated its recommendations regarding spectrum charges for all categories of satellite based services,” TRAI said.
This effectively puts satellite spectrum pricing at nearly half the level of terrestrial telecom levies, given both the high cost of building satellite infrastructure and the policy goal of expanding connectivity to underserved regions. For context, geostationary satellites operate at about 36,000 km with latency of roughly 477 milliseconds, while LEO systems, positioned between 400 and 2,000 km offer much lower latency of 2–27 milliseconds but require far greater capital investment due to the scale of constellations. These differences are likely to influence how spectrum in various bands, such as L, S, C, Ku, and Ka is priced and allocated going forward.
Under the current regime, spectrum is typically assigned to service providers-entities that directly offer telecom services to users. However, the logic for having a SCN network is rooted in efficiency. If spectrum were restricted to service providers, each telecom operator would need to build its own satellite network, duplicating capital expenditure. By contrast, an SCN framework would enable infrastructure providers to deploy satellites and gateway earth stations and lease capacity to multiple service providers, much like tower companies do in the terrestrial telecom sector.
The SCN proposal also introduces the possibility of spectrum sharing. A network provider could either obtain spectrum through administrative allocation, if it falls within specified use cases under the Telecommunications Act, 2023 or partner with a service provider and use its assigned spectrum. The DoT argues this flexibility will prevent inefficient duplication, where each telecom operator would otherwise need to build its own satellite network.
But TRAI has flagged concerns that allowing network providers to hold spectrum may blur regulatory boundaries and complicate oversight.
Another unresolved issue is the structure of spectrum charges beyond AGR-based levies. The consultation raises the possibility of hybrid models combining revenue share with fixed or usage-based fees, but stops short of recommending a specific approach.
TRAI has invited stakeholder comments on the proposed framework and financial terms by May 6.