The Telecom Regulatory Authority of India (TRAI) has proposed a new framework that could allow smartphones in India to connect directly to satellites, potentially extending mobile connectivity to areas with limited or no conventional network coverage.
The recommendations, released on November 5, have been submitted to the Department of Telecommunications (DoT) for consideration. The proposal could open up new opportunities for satellite communication companies, including Starlink, Amazon Leo, Eutelsat OneWeb and Tata’s Nelco, while enabling telecom operators to expand their network coverage.
Under the proposed framework, satellite companies would provide network infrastructure and capacity to authorised telecom operators and other eligible service providers. These companies could then offer satellite-based connectivity to consumers.
To facilitate this arrangement, TRAI has recommended introducing a new category called Satellite Communication Network (SCN) Provider Authorisation under the Telecommunications Act, 2023. The authorised providers would be allowed to offer Satellite Communication Network-as-a-Service (SCNaaS), but would not be permitted to provide telecom services directly to consumers.
The proposed authorisation would be valid for 20 years, with an option to renew it for another 20 years.
TRAI proposes two models for direct-to-device connectivity
TRAI has outlined two approaches for direct-to-device (D2D) satellite connectivity.
The first model, based on Mobile Satellite Service (MSS), would use dedicated satellite frequencies in the L-band and S-band to connect compatible smartphones directly to satellites. The regulator has recommended that the government encourage smartphone manufacturers to incorporate the necessary satellite communication modules in future handsets sold in India.
The second model would use International Mobile Telecommunications (IMT) spectrum already assigned to telecom operators. TRAI has identified the 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz and 2100 MHz bands for this purpose.
The regulator has recommended allowing IMT-based D2D services on a non-interference and non-protection basis without waiting for the outcome of the World Radiocommunication Conference 2027 (WRC-27).
Under this arrangement, satellite companies would need agreements with telecom operators holding the relevant spectrum. The spectrum rights would continue to remain with the telecom operators.
Starlink, Amazon Leo, Airtel and Jio could benefit
The proposed framework could create opportunities for companies such as Starlink, Amazon Leo and Eutelsat OneWeb to supply satellite network capacity to telecom operators and other service providers.
Indian telecom companies, including Reliance Jio, Bharti Airtel and Vodafone Idea, could potentially use satellite infrastructure to extend connectivity to remote and underserved regions.
Airtel could leverage its association with Eutelsat OneWeb, while Vodafone Idea has a strategic arrangement with AST SpaceMobile for direct-to-device satellite connectivity.
However, satellite internet providers, including Starlink, Eutelsat OneWeb and Jio Satellite, are still awaiting the necessary government clearances and spectrum allocation before launching commercial satellite broadband services in India.
What are the proposed fees and regulations?
TRAI has recommended an authorisation fee of 8% of adjusted gross revenue (AGR) for satellite network providers, without a minimum authorisation fee. It has also proposed an entry fee of Rs 37.5 lakh for obtaining the new authorisation.
The recommendations include an annual minimum spectrum charge of Rs 3,500 per MHz where satellite spectrum is assigned directly by the government. The proposed framework also includes security requirements, such as lawful interception, traffic monitoring and routing satellite traffic originating or terminating in India through gateways located within the country.
The recommendations are not final government approval. The Department of Telecommunications will examine the proposal and take the final decision before the framework can be implemented.