New Delhi: India has moved a step closer to allowing commercial satellite broadband services from companies such as Starlink, Eutelsat OneWeb and Reliance
Jio, with a group of secretaries approving key recommendations on satellite spectrum allocation, according to sources.
The recommendations were originally made by the Telecom Regulatory Authority of India, or TRAI. The Digital Communication Commission discussed the matter last week, sources said. A final approval from the Union Cabinet is still required before the framework can be formally implemented.
Satellite broadband spectrum may be given for five years
Under the proposed framework, satellite communication companies are expected to receive spectrum for a period of five years.
The companies would have to pay a spectrum usage charge, or SUC, equal to 5 per cent of their adjusted gross revenue, commonly called AGR.
The framework is expected to offer some relief for services in rural areas, where the applicable spectrum usage charge could be lower. The move is aimed at making satellite internet more practical in places where traditional fibre or mobile broadband networks are difficult or expensive to build.
What it means for Starlink, OneWeb and Reliance Jio
The decision could clear one of the major regulatory hurdles facing satellite broadband providers in India.
Starlink, Eutelsat OneWeb and Reliance Jio have been preparing to offer satellite-based internet services in the country. Spectrum allocation has remained one of the key issues before services can begin at scale.
Satellite broadband uses satellites to connect users to the internet instead of depending entirely on towers, cables or fibre networks. This makes the technology particularly relevant for remote villages, border regions, islands and other places where terrestrial networks have limited reach.
Cabinet approval still awaited
The latest approval does not mean commercial services can start immediately.
The government still needs to complete the final approval process, including Cabinet clearance. Detailed operating conditions and the final spectrum assignment process would then determine when companies can actually begin offering services.
The biggest question now is how quickly the government completes the remaining approvals and how the final charges affect pricing for users.
