(Commonwealth_India) India’s telecom regulator, the Telecom Regulatory Authority of India (TRAI), is poised to recommend that satellite broadband spectrum be allotted for around five years to assess the initial market adoption of this emerging technology. This move contradicts the stance of Elon Musk’s Starlink, which has been pushing for a 20-year permit for satellite broadband operations in the country. A senior government source, speaking on the condition of anonymity, revealed that TRAI is currently working on key recommendations for the Indian federal government, which include determining the time frame for the allocation of satellite spectrum and setting pricing guidelines.
Musk’s Starlink, which aims to provide high-speed internet access via satellite, has been in discussions with Indian officials for a long-term regulatory framework, with a preference for a 20-year permit. Starlink believes a longer duration is necessary to ensure affordable pricing and to lay down more substantial long-term business plans. In contrast, Indian billionaire Mukesh Ambani’s telecom subsidiary, Reliance Jio, has pushed for a more conservative three-year period. Reliance and Musk’s Starlink recently announced a partnership that will allow Starlink devices to be sold in Ambani’s expansive Reliance retail stores across India, providing Starlink with a significant distribution network. Notably, the two were previous rivals, with Ambani’s company lobbying for spectrum auctions in India rather than administrative allotments, a demand that Musk favored.
Alongside Reliance, Bharti Airtel, another major player in India’s telecom sector, has also advocated for a three-to-five-year licensing period for satellite broadband spectrum. Airtel, like Reliance, has signed a distribution agreement with Starlink to enable the sale of Starlink’s broadband equipment. The moves by both Reliance and Airtel have put significant pressure on TRAI to develop a regulatory framework that balances the interests of traditional telecom companies with the emerging satellite broadband industry.
The TRAI’s current stance is likely to favor a shorter license period of approximately five years, giving stakeholders time to assess how the satellite broadband sector develops. According to the senior government source, the aim is to “understand how the market stabilizes” and avoid locking the industry into longer-term commitments prematurely. The official also mentioned that the shorter license duration will provide an opportunity to reassess spectrum pricing after the initial period, taking into account how the market evolves. This flexibility would allow the government to adjust pricing structures based on the future demand for satellite broadband and the competitive landscape.
Industry insiders believe that the shorter time frame could be crucial for the government to determine the optimal pricing strategy for satellite spectrum. As of now, satellite spectrum is expected to be priced considerably lower than the spectrum traditionally allocated for telecom services, which are auctioned for periods of up to 20 years. This price difference is one of the key points of contention between the stakeholders, as companies like Starlink seek favorable pricing to make their services more affordable in the Indian market.
While TRAI has not responded to official queries on this matter, the government is expected to finalize its recommendations within the next month. India’s telecoms ministry will receive the completed recommendations for further review and action. If Musk’s Starlink, as well as Reliance Jio and Airtel, are successful in securing the necessary regulatory clearances, they will be able to roll out satellite broadband services across India, where there is a growing demand for high-speed internet connectivity in rural and remote areas.
Elon Musk’s strategic partnership with Reliance and Airtel is considered a major development in India’s telecom landscape. The Indian government’s willingness to allow such collaborations signals a shift toward embracing satellite broadband technology as an alternative to traditional fiber-optic and 4G-based networks, especially in underserved regions. Musk’s long-standing ambitions to provide global internet coverage via satellite constellations, such as Starlink, could soon see fruition in India, but the regulatory environment will continue to play a critical role in shaping the industry’s trajectory.
India’s satellite communication sector has attracted significant attention recently, with estimates from consultancy KPMG suggesting that the market could grow more than 10 times in value, reaching $25 billion by 2028. This growth is expected to be driven by the increasing demand for connectivity, both in urban and rural areas, and the country’s efforts to bridge the digital divide. With global players like Starlink, as well as domestic telecom giants like Reliance and Airtel, vying for a piece of this expanding market, India is poised to become a key battleground for satellite broadband services in the coming years.
While the Indian government’s proposal for a five-year license period may be considered a cautious approach, it allows for flexibility in adapting to the changing dynamics of the satellite broadband industry. As TRAI finalizes its recommendations, the future of satellite broadband in India is likely to hinge on how well regulatory policies can balance the needs of market players with the country’s broader goals of digital inclusion and connectivity expansion.
