India is preparing for the rollout of satellite communication (satcom) services as part of its broader digital expansion strategy. However, the final roll-out depends on regulatory compliance, spectrum pricing, and security approvals.
Union Telecom Minister Jyotiraditya Scindia shared significant updates on the progress, confirming that provisional spectrum has already been allocated to key players — including Elon Musk-owned Starlink — to test their compliance systems.
Scindia stated that satcom services will be introduced only after companies meet security requirements laid out by national agencies.
“There are two issues that need to be addressed. One by the licence holders OneWeb, Reliance Jio, and Starlink, which is to comply with security clearances regarding international gateways, ensuring data remains in India, and so on,” Scindia said.
He further added that the provisional spectrum allocation is part of testing their readiness:
“They are in the process of doing that, so they need to comply,” Scindia said.
The government is still working with the Department of Telecommunications (DoT) and TRAI to finalise pricing for satellite spectrum.
“Hopefully that should be resolved soon,” Scindia said.
TRAI earlier turned down several proposals from DoT, including:
Increasing the annual satcom spectrum fee from 4% to 5%
Removing the ₹500 urban connection fee
Other structural pricing adjustments
The Digital Communication Commission (DCC) will now review the matter and may seek Cabinet approval before the final decision is implemented.
Alongside satcom discussions, the government is examining relief options sought by Vodafone Idea (VIL).
“We are today applying our minds on that. It is work in progress within the Department of Telecommunications,” Scindia said.
VIL has liabilities of around ₹2 lakh crore, including ₹1.19 lakh crore in spectrum dues. The company warned that lack of support could lead to heavy losses for the government and reduced competition in the telecom market.
The minister clarified:
“We have not given any relief as such. We have converted our dues into equity. Therefore, we hold a 49 per cent equity stake in Vodafone against dues of close to, if I recall correctly, Rs 37,000 crore.”
Despite financial pressures, the minister highlighted that India remains one of the few countries with four major telecom operators.
“Very few telcos in the world can boast of that. You have an economy with four players, very robust pricing, and high economies of scale in the market. We would like to see that continue,” he said.
Vodafone Idea and BSNL together still serve over 310 million customers, emphasizing their continued relevance.
Security compliance — ensuring data routes remain within India
Final spectrum pricing approval
Once approved, satellite internet could significantly improve connectivity in rural, remote, and underserved areas — aligning with India’s digital inclusion goals.
Starlink and other satcom providers are progressing through regulatory steps, but commercial rollout will only happen after compliance verification and final spectrum pricing.
The government expects resolution soon, which could pave the way for the next phase of India’s satellite broadband expansion.