Satellite Internet and Spectrum Allocation in India

Context

India’s emerging satellite-internet market has renewed debate over spectrum assignment, pricing and security regulation. The issue is important because satellite broadband can expand connectivity to remote, border, island and disaster-prone regions.

How Satellite Internet Works

1. Satellite internet connects a user terminal, satellite and ground gateway to transmit data.
2. New systems such as Starlink and Eutelsat OneWeb mainly use Low Earth Orbit (LEO) satellites, which offer lower latency than traditional geostationary systems.
3. Ku and Ka bands are commonly used for high-capacity satellite broadband.
4. Satellite broadband complements, rather than replaces, terrestrial fiber and submarine cables.

Why Satellite Spectrum Is Different

1. Terrestrial 4G and 5G spectrum is usually auctioned because operators receive relatively exclusive use over defined areas.
2. Satellite systems cover wider regions and require shared use, international coordination and interference management.
3. Therefore, satellite spectrum cannot be treated exactly like terrestrial mobile spectrum.

India’s Allocation and Pricing Framework

1. Under the Telecommunications Act, 2023, specified satellite services listed in the First Schedule can receive spectrum through administrative assignment.
2. Administrative assignment does not mean free spectrum; operators must pay prescribed charges and comply with regulatory conditions.
3. TRAI recommended 4% of AGR as the spectrum charge.
4. In September 2026, the Digital Communications Commission approved 5% of AGR, reducible to 4% in notified rural or remote areas, subject to final government approval.
5. Spectrum assignment may be made for up to five years, with a possible two-year extension.

Regulatory and Strategic Safeguards

1. Operators require telecom authorization, security clearance and spectrum assignment before commercial operations.
2. Requirements include lawful interception, security monitoring and domestic gateway infrastructure.
3. India also seeks greater indigenization of ground-segment equipment and infrastructure.
4. Multiple constellations using similar frequencies make interference coordination essential.
5. The policy challenge is to balance digital inclusion, competition, spectrum efficiency and national security.

FAQs

Q1. What is satellite internet?
Internet delivered through communication between satellites, user terminals and ground stations.

Q2. Which bands are commonly used?
Mainly Ku and Ka bands for high-capacity broadband.

Q3. Is satellite spectrum auctioned in India?
Specified satellite services can receive spectrum through administrative assignment.

Q4. What spectrum charge has the DCC approved?
5% of AGR, reducible to 4% in notified rural or remote areas, subject to final approval.

Q5. Why is satellite internet important for India?
It can provide broadband in remote and difficult-to-connect regions.