DoT Approves TRAI Satellite Communication Recommendations

The Digital Communications Commission, the apex decision-making body of the Department of Telecommunications, approved most recommendations of the Telecom Regulatory Authority of India on satellite communication spectrum allocation on 8 September 2026. The framework covers spectrum assignment, spectrum usage charge, administrative allocation, and service rollout conditions for satellite broadband operators in India.

Satellite Communication Spectrum Framework

Satellite communication, or satcom, uses satellites to transmit voice, data, and broadband services between ground stations and user terminals. Under the approved framework, satellite broadband spectrum will be administratively allocated for an initial period of five years, with a provision for a two-year extension.

The approved model applies to operators such as Starlink, Eutelsat OneWeb, and Jio Satellite Communications. These operators require spectrum allocation and security clearances before commercial services can begin.

Spectrum Usage Charge and Service Conditions

The Digital Communications Commission approved a spectrum usage charge of 5% of adjusted gross revenue for satellite communication services. This rate is higher than the 4% charge proposed by the Telecom Regulatory Authority of India.

Satcom operators serving government-notified remote, rural, or hard-to-connect areas will pay a discounted spectrum usage charge of 4% of adjusted gross revenue. The charge structure applies to satellite communication services that use assigned spectrum for commercial operations.

Regulatory Proposals and Rejected Measures

The Department of Telecommunications rejected the proposal for a ₹500 annual charge per urban subscriber. It also rejected the proposal to subsidise satellite user terminals through the Digital Bharat Nidhi fund.

Satellite user terminals used for broadband access are priced in the range of ₹20,000 to ₹50,000. The Department of Telecommunications cited execution difficulties for the rejected subsidy and subscriber-charge proposals.

Important Facts for Exams

• The Telecom Regulatory Authority of India was established under the TRAI Act, 1997.
• The Digital Communications Commission functions under the Department of Telecommunications in the Ministry of Communications.
• Adjusted gross revenue is a revenue base used in India for calculating telecom levies and licence-related charges.
• Digital Bharat Nidhi is the renamed Universal Service Obligation Fund under the Telecommunications Act, 2023.

Clearance and Approval Process

Before commercial launch, the Union Cabinet must approve final pricing and administrative allocation for satellite communication spectrum. Operators must also complete second-stage security clearance and foreign direct investment clearance before service rollout.