India's Satcom and Telecom Industries: An Ongoing Battle for Spectrum and Market Dominance Continues.
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The battle between satellite communication (satcom) providers and traditional telecom operators in India continues to intensify, fueled by disagreements over spectrum pricing and regulatory frameworks. The core of the dispute lies in the perceived uneven playing field, with telecom giants like Reliance Jio and Bharti Airtel raising concerns that "unjustifiably low" satcom spectrum rates could unduly benefit companies such as Elon Musk's Starlink.

In May 2025, the Telecom Regulatory Authority of India (TRAI) proposed that satcom providers pay 4% of their annual revenue to the government for offering services. However, the Cellular Operators Association of India (COAI), representing Reliance Jio and Bharti Airtel, argued that traditional telecom players pay significantly higher upfront auction charges for spectrum, resulting in a roughly 21% higher payment to the government compared to what satcom players would pay. The COAI has urged the telecoms ministry to review these pricing proposals, advocating for equivalent or comparable pricing per MHz for both terrestrial and satellite services, especially when serving the same consumers with identical services.

Adding fuel to the fire, the government has granted Starlink a license to provide satcom services in India, positioning it alongside Airtel-backed Eutelsat OneWeb and Jio Satellite Communications. While Starlink had lobbied for administrative spectrum allocation, as is the trend globally, Reliance Jio pushed for an auction. The government eventually opted for administrative allocation, citing the shared nature of satellite communication spectrum and the technical difficulties associated with auctioning it.

This decision has further aggravated concerns among telecom operators, who have invested heavily in 5G spectrum through auctions in recent years. They fear that satcom providers, with potentially lower spectrum costs, could offer competitive broadband services at more affordable rates, impacting the sustainability of terrestrial telecom services.

However, both the government and TRAI have dismissed these fears, asserting that satcom and terrestrial telecom services cater to different segments and operate on different scales. Officials estimate that Starlink, for example, might have only a million customers by 2028-29, compared to 75 million wireline broadband users and 1.2 billion 4G and 5G users. Satcom tariffs are also expected to be significantly higher, with hardware costs being approximately 13 times more expensive and monthly plans around eight times pricier than those offered by traditional telecom operators.

In addition to the pricing debate, satcom providers in India face stringent regulatory requirements. The Department of Telecommunications (DoT) has introduced comprehensive security guidelines mandating data localization, real-time monitoring, user terminal registration, geo-fencing, and integration with India's NavIC positioning system by 2029. These rules also require satcom providers to source at least 20% of their ground infrastructure equipment from Indian manufacturers within five years of launch, aligning with the "Make in India" initiative. The satcom firms must ensure that user traffic originating from or destined for India is not routed through any foreign gateway.

The government's approach to the satcom sector is driven by a vision of universal connectivity and technological leadership. The National Telecom Policy (NTP) 2025 aims to double telecom exports, achieve universal connectivity at affordable rates, and create one million new jobs by 2030. The policy envisions the integration of terrestrial and satellite networks to provide reliable connectivity across the nation, with a focus on emerging technologies like 6G, quantum communications, and AI. The new telecom policy targets increasing the ICT sector's GDP contribution to 11% and attracting significant investment in telecom infrastructure.

The ongoing discussions and regulatory developments highlight the complex interplay between promoting innovation, ensuring fair competition, and safeguarding national security in India's evolving telecom landscape.


Writer - Aryan Singh
Aryan Singh is a burgeoning journalist with a fervent dedication to compelling storytelling and a strong ethical compass, complemented by a passion for sports. Recently graduated with a focus on multimedia journalism, Aryan is keen to delve into socio-political landscapes and cultural narratives beyond his immediate environment. He aims to produce well-researched, engaging content that fosters understanding and critical thinking among a global audience, always finding parallels with the strategic world of sports.
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