India takes a significant step towards launching commercial satellite broadband services as the Digital Communications Commission approves the framework for spectrum allocation, removing key regulatory hurdles for operators including Starlink, Eutelsat OneWeb, and Jio Satellite.
India has moved a step closer to commercial satellite broadband after the Digital Communications Commission approved the framework needed to allocate spectrum to operators, according to Business Standard. The decision removes a major regulatory obstacle for companies such as Eutelsat OneWeb, Starlink and Jio Satellite, all of which have spent years building ground and space infrastructure while waiting for a licensing structure to be finalised.
Under the approved plan, operators will pay a spectrum usage charge of 5 per cent of annual adjusted gross revenue, with the rate reduced to 4 per cent in rural and remote areas, Business Standard reported, citing people familiar with the matter. Spectrum will be assigned for five years, with a possible two-year extension. The services still require ratification by an inter-ministerial panel and the Cabinet, along with security and foreign direct investment clearances before launch.
The framework appears to reflect a compromise between the regulator’s earlier proposal and the Department of Telecommunications’ preferred position. Communications Today reported that the department had been leaning towards a 5 per cent AGR-linked charge, while earlier TRAI recommendations had called for a 4 per cent levy plus a separate annual fee for urban subscribers. The final structure also drops the idea of an urban per-user fee, suggesting policymakers have opted for a simpler revenue-linked model that is easier to administer for a capital-intensive sector.
The approval should help clarify the path for the sector, but commercial service is still not imminent. Business Standard noted that Eutelsat OneWeb and Jio Satellite would not need FDI clearance, while Starlink and Amazon Leo would. A senior industry executive told the paper that the move improves investment certainty, but the harder task now is execution: securing remaining approvals, setting the price of administratively assigned airwaves and building services that can compete on cost outside underserved markets. IMARC has estimated India’s satcom market at $3.2 billion in 2025, rising to $6.3 billion by 2034, underscoring why operators are keen to move ahead.
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