Regulatory clearance stands in the way of commercial satcom service rollout

Satellites have a limited operational lifespan—typically 5-7 years for low-earth and medium-earth orbit constellations. Delays in spectrum allotment mean these resources remain idle, leading to wasted investment and lost revenue opportunities.

Satellite communication companies in India are pressing the Department of Telecommunications (DoT) to expedite the allocation of satellite spectrum, emphasizing that delays are causing significant financial losses and underutilization of valuable satellite resources.

Status. Eutelsat OneWeb (and Reliance Jio-SES have the necessary licenses and authorizations but cannot launch commercial satellite internet services due to the lack of frequency assignment. Both companies have the required GMPCS permits from DoT and authorizations from the Indian National Space Promotion & Authorisation Centre (IN-SPACe).

The industry, represented by Indian Space Association (ISpA) and the Broadband India Forum (BIF), has requested that DoT grant provisional spectrum allocation. They propose that companies provide an undertaking to pay the final spectrum charges retroactively once the government’s pricing policy is finalized. This would allow immediate commercial rollout while safeguarding government revenue interests.

There are precedents for provisional spectrum assignments, such as the E-band spectrum in 2022, which was allocated on a provisional basis pending final guidelines. The Telecommunications Act 2023 has paved the way for administrative allocation of satellite spectrum, but the Telecom Regulatory Authority of India (TRAI) is still considering specifics on pricing and allocation methods.

TRAI is considering a five-year spectrum allotment period to monitor market adoption before committing to longer-term licenses, despite some operators like Starlink advocating for 20-year permits for greater stability. Reliance and Bharti Airtel support the shorter, adaptive approach. They have argued for fair competition, insisting that satellite operators offering similar services should face comparable pricing and regulatory levies as terrestrial networks, especially in urban and enterprise segments.

As per the DoT’s October 2024 notification, provisional spectrum can be assigned for up to six months for testing and compliance purposes, but not for commercial services. Data security and reporting requirements are stringent during this period.

CT Bureau