Starlink, Jio Satcom: TRAI Backs 8% Fee, Direct-to-Phone Satellite Link

The Telecom Regulatory Authority of India (TRAI) on Thursday, 5 November, recommended a separate authorisation for companies that run satellite networks, with a 20-year term and a fee of 8 per cent of adjusted gross revenue (AGR). The proposal would let firms such as Starlink, Jio Satellite Communications and Eutelsat OneWeb sell satellite capacity to telecom operators under the Telecommunications Act, 2023, and would also allow phones to connect directly to satellites, according to Business Standard and TelecomLead.

Satellite Firms Sell to Operators, Not Users

Under the model, called Satellite Communication Network-as-a-Service, an authorised provider can offer infrastructure and capacity to telecom operators and other eligible service providers. It cannot sell telecom services to consumers itself. For ordinary users, that means satellite broadband and phone coverage would reach them through an operator’s plan rather than a separate satellite subscription.

TRAI also recommended direct-to-device links using mobile satellite spectrum and terrestrial bands from 600 to 2100 MHz, on a non-interference basis and without waiting for the 2027 World Radiocommunication Conference. It suggested the government encourage handset makers to build in L and S band satellite modules.

Also read TRAI Data: 6.57 Million Mobile Users Added in September 2026

8% of AGR and Rs 3,500 Per MHz

The authorisation would cover the whole country for up to 20 years, renewable for another 20. The authorisation fee is 8 per cent of AGR with no minimum. Administratively assigned spectrum would cost at least Rs 3,500 per MHz a year, for up to five years, extendable by two. The entry fee is Rs 37.5 lakh, and applicants need minimum equity and net worth of Rs 60 lakh each.

The question of how to price satellite spectrum has run through earlier IPB coverage, including Reliance’s comments on Starlink competition. More reports are collected under the Starlink tag.

Decision Now Sits With the Department of Telecommunications

These are recommendations and do not bind the government. They go to the Department of Telecommunications, which has not announced a timeline. Until it accepts or changes them, the fee and spectrum terms are proposals only.

Source: Based on reporting by Business Standard and TelecomLead.

Image: Wikimedia Commons.