India's Satellite Spectrum Rules to Propel Starlink and OneWeb Services

In a significant move for satellite communications, India is expected to finalize spectrum allocation rules within two months, according to a government official. This development will allow major players such as Starlink, backed by Elon Musk, and OneWeb, backed by Bharti Group, to begin their satellite services in India.

The Telecom Regulatory Authority of India (Trai) has advocated for an administrative approach to spectrum allocation, skipping the auction process—a suggestion that initially faced pushback from telecom giants like Reliance Jio and Bharti Airtel. According to Trai's recommendations, spectrum could be allocated for up to five years, with possible extensions based on market conditions.

Under the new guidelines, spectrum charges will be 4% of the adjusted gross revenue (AGR) for both GSO and NGSO satellite services. Starlink and OneWeb, categorized as NGSO satellites, will face additional per subscriber charges in urban areas, but these charges will not apply to rural zones. The upfront costs and monthly charges for these satellite services are cited as high, with Starlink connections capped at 20 lakh in India.