Draft satcom spectrum rules: Govt proposes layers of security approvals, conditional consumer service

Merely getting a licence from the Department of Telecom (DoT) to provide satellite communication services will no longer be enough; companies will need security clearance even after the assignment of spectrum to roll out their services, according to draft rules issued by the government.

Satellite companies will get radio waves without auction through an administrative process against a fixed annual fee in the range of ₹30,000 to Rs 50 lakh based on the service type on a per-terminal basis and a non-refundable application fee of ₹1,000.

Though the companies will be assigned spectrum through an administrative process, charges of radio waves will be determined on the basis of market price.

The draft Telecommunications (Spectrum Assignment by Administrative Process) Rules, 2026, published by the Department of Telecom, also makes it conditional for satellite companies like Elon Musk-led Starlink, Bharti group-backed Eutelsat OneWeb, and Jio Satcom to roll out satcom services for end consumers.

Satcom companies will need permission from the Centre before starting satellite phone and broadband services for the public.

"Provided that if the central government has issued a letter of intent before obtaining the applicable clearance for the installation of radio equipment, the spectrum assignment shall be granted after such clearance has been obtained," the draft rules notified on June 17 said.

The rule mentions that companies will need security clearance to get a letter of intent, which is issued before a company gets a licence. Satcom companies will then need spectrum allocation to start the service.

The DoT has given 30 days for interested parties to comment on the draft rules.

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The rule bars satellite communication companies from connecting its telecommunications networks with public telecommunication networks, including public switched telephone networks that are traditional landline connections; public land mobile networks, global mobile personal communication (satellite phone services) by satellite; or the internet, without permission of the government.

"This notification paves the way for the provision of satellite-based services by licensees of various satellite services. As far as the provision of satellite-based services to the public is concerned, further approval of the central government will be required. It may be related to the security concerns related to such services," Former Principal Advisor of the Telecom Regulatory Authority of India (Trai) Satya N Gupta said.

Former CMD BSNL and data centre company Submer India Head Anupam Shrivastava said the new draft rules in the draft spectrum rules are a big help for BSNL.

"Allowing the company to get spectrum first and handle paperwork later will cut down red tape and speed up network rollouts. The low 1 per cent revenue charge for satellite phone services is also a great move for remote connectivity.

However, because BSNL must now pay auction-linked market prices and reapply for spectrum when it expires rather than getting an easy renewal, the company will need to be highly disciplined with its budget and long-term planning," he said.