India’s satellite communications industry could undergo a major regulatory shift after the Telecom Regulatory Authority of India (TRAI) recommended a separate authorisation framework for satellite network providers and supported satellite-to-smartphone connectivity. The proposals could allow companies operating satellite infrastructure to sell network capacity to traditional telecom operators, creating a new business model for services that connect compatible mobile devices directly to satellites.
The recommendations, released on November 5, 2026, also propose allowing direct-to-device (D2D) services using both dedicated satellite frequencies and spectrum already assigned to mobile operators. If accepted by the Department of Telecommunications (DoT), the framework could create new opportunities for companies such as Starlink, Amazon Leo, Eutelsat OneWeb and Tata’s Nelco, while giving Reliance Jio, Bharti Airtel and Vodafone Idea additional options to extend connectivity. However, the recommendations are not final government rules, and commercial services will still require regulatory approvals and technical arrangements.
TRAI Proposes a Separate Authorisation for Satellite Network Providers
One of the most important recommendations is the creation of a new category called the Satellite Communication Network (SCN) Provider Authorisation under Section 3(1)(b) of the Telecommunications Act, 2023.
Under this framework, authorised companies would be allowed to provide Satellite Communication Network as a Service (SCNaaS) to eligible telecom operators and other licensed service providers.
The distinction is that satellite network providers would supply the underlying infrastructure and network capacity rather than directly selling telecommunications services to individual consumers.
For example, a satellite operator could provide network capacity to a licensed Indian telecom company. The telecom operator could then use that infrastructure to offer satellite-based connectivity to its subscribers.
TRAI has proposed that the authorisation cover the entire country for a maximum period of 20 years, with the option to renew it for another 20 years.
Existing entities holding eligible telecommunications licences, including access service, internet, long-distance, VSAT and satellite gateway authorisations, could also provide SCNaaS if they meet the prescribed eligibility, technical and security requirements.
Satellite-to-Smartphone Services Get Regulatory Support
The second major proposal concerns direct-to-device connectivity, which could allow compatible smartphones to communicate with satellites without relying entirely on conventional mobile towers.
Today, mobile networks generally depend on terrestrial infrastructure such as cellular towers and fibre connections. Satellite-to-smartphone technology could extend coverage to remote areas, forests, mountains, offshore locations and regions where building conventional telecom infrastructure is difficult.
TRAI has recommended two approaches for introducing these services in India.
1. Direct connectivity using satellite spectrum
The first approach involves using Mobile Satellite Service (MSS) spectrum in the L-band and S-band.
Under this model, compatible smartphones would communicate directly with satellites using dedicated satellite frequencies.
TRAI has recommended that the government encourage smartphone manufacturers to incorporate the necessary satellite communication modules into future handsets sold in India.
This means that satellite-to-phone connectivity could eventually become a built-in capability in compatible smartphones, although device support and commercial availability will depend on manufacturers and service providers.
2. Direct connectivity using mobile spectrum
The second approach involves allowing satellites to use terrestrial mobile spectrum already assigned to telecom operators.
TRAI has identified the following frequency bands for this purpose:
- 600 MHz
- 700 MHz
- 800 MHz
- 900 MHz
- 1800 MHz
- 2100 MHz
Under this arrangement, satellite companies would need agreements with telecom operators that hold the relevant spectrum across all 22 licensed service areas.
The satellite provider could use the partner operator’s spectrum to connect compatible devices beyond the reach of terrestrial mobile networks.
TRAI has recommended allowing these services on a non-interference and non-protection basis. This means satellite operations must not cause harmful interference to existing services and cannot demand protection from interference under the proposed arrangement.
The regulator has also recommended proceeding without waiting for the outcome of the World Radiocommunication Conference 2027 (WRC-27), subject to the proposed safeguards and any subsequent government decision.
How Jio, Airtel and Vodafone Idea Could Benefit
The proposed framework could create a clearer division of responsibilities between satellite infrastructure providers and telecom operators.
Satellite companies would supply network capacity, while licensed telecom operators could integrate that capacity into their existing services.
This could help mobile operators extend coverage without having to build terrestrial towers in every remote location.
| Company | Potential role |
|---|---|
| Starlink | Supply satellite network capacity |
| Amazon Leo | Provide satellite infrastructure |
| Eutelsat OneWeb | Supply satellite connectivity capacity |
| Tata’s Nelco | Participate in satellite-based service delivery |
| Reliance Jio | Integrate satellite capacity into telecom services |
| Bharti Airtel | Explore satellite connectivity through its OneWeb relationship |
| Vodafone Idea | Explore direct-to-device services through its AST SpaceMobile arrangement |
These are potential roles under the proposed framework, not confirmed commercial service launches.
For example, Airtel could explore satellite capacity through its relationship with Eutelsat OneWeb, while Vodafone Idea could pursue its existing strategic arrangement with AST SpaceMobile.
Reliance Jio could also evaluate partnerships with satellite network providers as the regulatory framework develops.
The arrangement could allow telecom companies to extend coverage and explore new services without independently building and operating an entire satellite constellation.
TRAI Proposes an 8% Revenue-Based Authorisation Fee
TRAI has also recommended financial conditions for companies seeking the new satellite network authorisation.
The proposed authorisation fee is 8% of adjusted gross revenue (AGR), without a minimum authorisation fee.
The regulator has additionally proposed an annual minimum spectrum charge of ₹3,500 per MHz where fixed satellite service or mobile satellite service spectrum is assigned directly by the government.
Proposed financial conditions
| Requirement | Proposed amount |
|---|---|
| Authorisation fee | 8% of AGR |
| Entry fee | ₹37.5 lakh |
| Initial bank guarantee | ₹45 lakh |
| Minimum equity | ₹60 lakh |
| Minimum net worth | ₹60 lakh |
| Application processing fee | ₹10,000 |
| Minimum annual spectrum charge | ₹3,500 per MHz |
The proposed framework also allows eligible telecom service providers to deduct documented SCNaaS charges paid to satellite network providers from their applicable gross revenue calculations, subject to verification.
TRAI said it had considered regulatory parity between companies providing integrated satellite services and businesses operating through a shared network model.
Spectrum Allocation and Licence Conditions
TRAI has recommended administrative assignment of the relevant satellite spectrum rather than auction-based allocation under the proposed SCN framework.
Spectrum assignments would generally be valid for up to five years, with the possibility of an extension of another two years.
The recommendations cover fixed satellite services, mobile satellite services, feeder links and user links. Satellite network providers may also use spectrum already assigned to their partner service providers, with spectrum usage rights remaining with those partners.
This is an important distinction for D2D services using terrestrial mobile frequencies. Satellite companies would not independently acquire ownership of the mobile spectrum assigned to telecom operators.
The regulator has also proposed security requirements, including lawful interception and traffic monitoring capabilities. Satellite traffic originating or terminating in India would need to be routed through gateways located within the country.
The framework also envisages the ability to block satellite signals in government-notified security-sensitive areas.
Why the Recommendations Matter for India’s Satellite Industry
India’s satellite communications market has attracted growing interest from international operators and domestic telecom companies.
However, commercial satellite broadband services have faced regulatory and security-related requirements, including clearances and spectrum arrangements.
A separate network-provider authorisation could make the regulatory structure more flexible by allowing infrastructure companies to supply capacity to multiple eligible service providers.
It could also create a clearer commercial pathway for satellite-to-smartphone connectivity, an area that could become increasingly important as mobile operators look for ways to extend coverage beyond conventional networks.
The potential applications include emergency communications, connectivity in remote communities, maritime services and coverage in areas where terrestrial infrastructure is expensive or difficult to deploy.
However, satellite connectivity will not automatically replace conventional mobile networks. Capacity, device compatibility, spectrum availability, network performance and service pricing will determine which applications become commercially viable.
The Bigger Picture
TRAI’s recommendations point towards a more collaborative model for India’s telecom and satellite industries. Instead of requiring satellite companies to build a complete consumer-facing telecom business, the proposed framework would allow them to focus on infrastructure while licensed service providers handle customer relationships and retail connectivity.
This could encourage more partnerships between global satellite operators and Indian telecom companies. It could also increase competition in connectivity services, particularly in locations that remain difficult to serve through conventional mobile networks. The success of the framework, however, will depend on the final rules, commercial agreements and technical safeguards adopted by the government.
Looking Ahead
The immediate next step is for the Department of Telecommunications to examine TRAI’s recommendations and decide which proposals should be accepted or modified. The recommendations cover authorisation, spectrum assignment, financial conditions and direct-to-device connectivity, but they do not mean that satellite-to-smartphone services are immediately available across India. Companies will still need to satisfy the applicable licensing, security, spectrum and operational requirements before launching commercial offerings.
If the government accepts the framework, India’s satellite communications market could develop into a more integrated ecosystem involving satellite operators, telecom companies and device manufacturers. For consumers, the longer-term possibility is more reliable connectivity in areas beyond conventional mobile coverage. For businesses, the proposed rules could open a new market for satellite network capacity and partnerships, making the next phase of India’s telecom expansion less dependent on terrestrial infrastructure alone.
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