New Delhi: India’s telecom regulator has recommended the allocation of satellite spectrum for commercial communication services for a five-year term, paving the way for space-based internet providers such as Elon Musk’s Starlink to enter the market. The move comes as Starlink inches closer to its long-anticipated launch in India.
The Telecom Regulatory Authority of India (TRAI) said that the initial spectrum allotment could be extended by an additional two years depending on market conditions.
This flexible licensing regime is seen as a strategic compromise between enabling long-term investment and allowing regulatory space for market evolution.
TRAI’s recommendation marks a significant milestone in India’s satellite broadband ambitions, which have attracted global attention due to the country’s vast underserved rural markets and soaring data consumption.
Under the proposed pricing framework, telecom operators offering geostationary orbit-based fixed satellite services (GSO FSS) and mobile satellite services (MSS) would pay 4 percent of their adjusted gross revenue (AGR) as license fees. Additionally, a minimum annual spectrum charge of ₹3,500 ($41) per megahertz (MHz) would apply.
TRAI has recommended the first steps to enable satellite-based internet and mobile services a big leap toward connecting the unconnected and empowering India’s underserved and hinterland regions.
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— TRAI (@TRAI) May 9, 2025
For non-geostationary orbit-based fixed satellite services (NGSO FSS), TRAI has recommended a differential pricing model, an added ₹500 per subscriber annually in urban areas, with full exemption in rural and remote regions, aimed at encouraging digital penetration in underserved zones.
The recommendations come amid Elon Musk’s lobbying efforts to secure a 20-year spectrum allocation to ensure long-term viability and affordability for Starlink’s services in India.
Despite the shorter license term, Musk’s Starlink continues to make inroads. In March, he signed a landmark retail partnership with Indian billionaire Mukesh Ambani that will see Starlink devices sold through Reliance Digital stores giving the satellite operator access to one of India’s most expansive retail networks.
Bharti Airtel, India’s second-largest telecom operator, has also been active in the satellite internet space and is reportedly working on its own NGSO FSS initiatives. Like Starlink, Airtel had advocated for a shorter license term of three to five years.
