Government Proposes Multi-Layer Security Approvals for Satcom Operators
The central government has proposed a framework requiring satellite communication companies to obtain multiple layers of security approvals before launching consumer services. According to the draft Telecommunications (Spectrum Assignment by Administrative Process) Rules, 2026, issued by the Department of Telecom, a licence from DoT alone is insufficient to begin operations. Companies will need security clearance even after spectrum assignment to roll out services.
Draft Rules Target Starlink, OneWeb, and Jio Satcom
The draft rules set strict conditions for satellite firms such as Starlink, Eutelsat OneWeb, and Jio Satcom. These companies must secure explicit permission from the Centre before starting satellite phone and broadband services for end consumers. The rules state: "Provided that if the central government has issued a letter of intent prior to obtaining the applicable clearance for the installation of radio equipment, the spectrum assignment shall be granted, after such clearance has been obtained." This provision ensures that spectrum is only allocated after security clearance is secured.
Financial Framework: Spectrum Fees and Application Charges
Satellite companies will receive radio waves through an administrative process rather than an auction. The spectrum assignment comes with a fixed annual fee ranging from Rs 30,000 to Rs 50 lakh, determined on a per-terminal basis depending on the service type. Additionally, a non-refundable application fee of Rs 1,000 is required. The DoT notification specifies that companies need security clearance to obtain a letter of intent, which is issued before a formal licence. After that, operators must wait for final spectrum allocation to officially launch services.
Restrictions on Network Interconnection
The draft rules also restrict how satellite networks interact with existing telecommunications infrastructure. Satcom companies are barred from connecting their networks with public telecommunication networks without government permission. This restriction applies to traditional landline connections, public switched telephone networks, public land mobile networks, global mobile personal communication by satellite, and standard internet networks. These measures aim to ensure national security and regulatory oversight.
Market-Based Spectrum Pricing and Public Comment Period
Although spectrum will be assigned through an administrative mechanism, the actual charges for radio waves will be determined based on market price. The DoT has provided a 30-day period for interested parties to comment on the draft rules before finalizing the framework. This consultation process allows stakeholders to raise concerns or suggest modifications.
