The eagerly awaited launch of satellite-based broadband services in India by global and domestic players, including Elon Musk's Starlink, Reliance Jio, and Bharti Airtel, is likely to face a significant delay. A regulatory standoff between key government bodies is expected to push the commercial rollout timeline back by an estimated three to six months.
Regulatory Standoff Causes Major Hurdle
According to a report, the primary bottleneck is a disagreement over spectrum pricing between the Telecom Regulatory Authority of India (TRAI) and the Department of Telecommunications (DoT). This impasse is occurring despite leading contenders like Starlink, Eutelsat OneWeb, and Jio Satellite having cleared most preliminary regulatory hurdles.
These companies have already secured the crucial Global Mobile Personal Communication by Satellite (GMPCS) licence and necessary approvals from the Indian National Space Promotion and Authorisation Centre (In-SPACe). However, the final green light for commercial services hinges on the allocation of spectrum, final pricing rules, and compliance with security and capacity norms.
Multi-Layer Approval Process Ahead
Shivaji Chatterjee, CEO and Managing Director of Hughes Communications India, outlined the lengthy process that remains. He stated that the current spectrum pricing proposals, especially the disagreements regarding Low Earth Orbit (LEO) satellite spectrum, must first be reviewed by a standing committee.
Following this, the proposal will move to the Digital Communications Commission (DCC) for approval. Once the DCC gives its nod, the matter will proceed to the telecom minister or the union cabinet for final ministerial approval.
Only after this will the Wireless Planning and Coordination (WPC) wing create specific rules, which will then be put out for a mandatory 30-day public consultation. Chatterjee highlighted that this consultation stage is critical, as terrestrial telecom operators may attempt to influence or impede the process during the feedback window.
DoT's Move on Spectrum Charges
Compounding the delay are upcoming personnel changes at the DoT and industry interference. Initially, TRAI had proposed a flat spectrum usage charge of 4% of the Adjusted Gross Revenue (AGR) for satellite operators.
However, the DoT has recently proposed to increase this charge to 5% of AGR, offering a 1% discount if operators meet specific rural rollout targets. Industry executives view this move as largely symbolic, aimed at addressing concerns raised by traditional telecom operators who have been advocating for a level-playing field.
An executive quoted in the report suggested that raising the fee from 4% to 5% would not make a major financial difference for the government, but was a step to show responsiveness to telco concerns. This tussle over pricing and the subsequent multi-layer approval process means consumers and businesses in remote and underserved areas will have to wait longer for the promised high-speed satellite internet connectivity.
