TRAI Recommends 5-Year Satellite Spectrum Term: Implications for Starlink, Airtel, and Jio

The Telecom Regulatory Authority of India (TRAI) has put forth a crucial recommendation that may redefine the satellite broadband landscape in India. TRAI suggests that satellite spectrum allocations should initially be valid for five years, with a possible two-year extension based on market evolution and operator performance. This move targets major global and domestic players such as Elon Musk’s Starlink, Reliance Jio, Bharti Airtel, and Amazon’s Project Kuiper.

Five-Year Spectrum Tenure With Conditional Extension

In its detailed proposal, TRAI emphasized the need for an initial short-term allocation of satellite spectrum to maintain sector flexibility. The recommended five-year license can be extended by another two years depending on operational success and industry dynamics. This step allows the regulatory framework to stay adaptable as satellite communication technologies evolve.

Revenue-Based Charges and Minimum Spectrum Fee Structure

TRAI has proposed a revenue-sharing model for geostationary satellite service providers. These operators will be required to pay 4% of their Adjusted Gross Revenue (AGR). Additionally, a minimum spectrum usage fee of ₹3,500 per MHz has been suggested to ensure fair valuation of satellite resources.

For non-geostationary orbit (NGSO) providers such as Starlink, the regulator has proposed an extra fee — ₹500 per subscriber annually. This is likely aimed at balancing the cost of deploying and maintaining low-earth orbit constellations.

Starlink’s 20-Year License Demand Rejected

In a significant development, TRAI has rejected Starlink’s request for a 20-year spectrum allocation, citing the importance of periodic sectoral reviews. Starlink had lobbied for a longer license term to enable better planning and lower pricing. However, the regulator believes shorter license terms provide better oversight and room for adjustments as the Indian satellite broadband market matures.

Starlink Collaborates With Airtel and Jio for Retail Distribution

Even as Starlink waits for regulatory approvals to officially launch in India, the company has taken strategic steps by partnering with Airtel and Jio. Under this arrangement, Starlink devices and hardware will be made available through these telecom giants’ retail channels. This shows a collaborative distribution strategy, potentially speeding up market access and hardware availability once operations begin.

New Security Regulations for Satellite Broadband Operators

Before offering commercial services, all satellite internet providers will be mandated to comply with updated security protocols from the Department of Telecommunications (DoT). These rules include:

• Enabling lawful interception and surveillance.

• Setting up systems for website blocking in compliance with government directives.

• Establishing surveillance zones within 50 kilometers of international borders.

Reports suggest that DoT has incorporated nearly 30 new security parameters to ensure that national security is not compromised as India expands its digital and satellite infrastructure.

Conclusion: A Balanced Move Towards Innovation and Regulation

TRAI’s latest recommendations reflect an attempt to balance innovation with regulatory caution. While companies like Starlink push for long-term clarity, the government is focusing on phased implementation to assess real-time market behavior. These proposals are likely to affect satellite spectrum pricing, rollout speeds, and global investments in India's internet infrastructure.