Telecom regulator recommends new licence to let satellite firms rent out networks to telcos

The Satellite Communication Network provider authorisation is a proposed licence under the Telecommunications Act, 2023. It would allow a company to build and operate the Indian ground network supporting satellite communications. The aim is to let satellite specialists provide infrastructure while licensed telecom companies serve customers.

A holder could run gateway earth stations, network equipment and spectrum-related network operations in India. It could rent that network to mobile operators or internet service providers. Those telecom partners would sell satellite internet, calls or messaging under their own brands, bill customers and handle complaints.

The holder would be barred from selling services directly to the public. The licence would also not authorise launching or operating satellites, which remains with the Department of Space. A company would not need to own satellites, provided it could run gateways for a foreign satellite operator. TRAI’s recommendations still require DoT approval.

Under the proposal, a satellite company such as Starlink or Eutelsat OneWeb would enter India as a network provider rather than a direct retail service. Its job would be to operate the Indian ground segment of a satellite network and make that capacity available to licensed telecom companies.

A company such as Reliance Jio or Bharti Airtel would use the rented network to offer satellite internet, calls or messaging under its own brand. It would sell the service to customers, collect payments and handle complaints. The satellite provider could seek spectrum itself while naming the telecom partner, or use spectrum already held by that partner.

This division could allow telecom operators to offer satellite connectivity without building their own satellite networks. It could also let a foreign satellite operator qualify without owning satellites, if it has an arrangement to run gateways in India. The arrangement remains conditional on DoT accepting TRAI’s recommendations.

A rented satellite network would combine space-based capacity with equipment on the ground. The satellite company would operate India’s ground segment, including gateway earth stations that communicate with satellites, network equipment and spectrum-related resources. These gateways would connect the satellite system with the partner telecom network.

For example, a satellite operator could run gateways in India and rent their network to Airtel or Jio. The telecom company could then offer satellite internet, calls or messaging to customers. It would sell the service under its own brand, bill users and handle complaints, while the satellite provider maintained the network behind the scenes.

The provider could request its own spectrum from DoT, identifying the telecom partner it would serve. Alternatively, it could use spectrum already held by that partner, but only for that partner’s service. Traffic from Indian users would have to pass through gateways in India and could not be routed or copied abroad, even if a local gateway failed.

TRAI has proposed a licence with national reach, rather than one limited to a particular region or telecom circle. It would remain valid for 20 years and could be renewed. This would give an approved satellite network provider a long operating horizon across India.

The licence would cover the Indian ground segment, including gateway earth stations and network equipment. Gateways are important because they communicate with satellites and connect satellite traffic to terrestrial networks. TRAI has proposed that gateways be running within 12 months of approval, alongside requirements for India-based traffic handling and monitoring access.

The process would still involve government decisions and security clearances. DoT would be asked to decide applications within 30 days after those clearances are in place. The proposed authorisation is not itself permission to launch or operate satellites. Those responsibilities would remain with the Department of Space, and the recommendations would take effect only if DoT accepts them.

If DoT accepts the proposal, satellite companies could enter India purely as network providers. They would not need to build a retail customer business. Instead, they could rent networks to licensed telecom operators, creating a clearer separation between infrastructure and consumer services.

Reliance Jio, Bharti Airtel and other licensed operators could use those networks without building their own satellite systems. They could then sell satellite internet, calls or messaging under their own brands. The proposal also supports direct-to-device services, allowing satellites to connect regular smartphones where mobile towers are unavailable.

The change is not certain yet. TRAI’s recommendations are not binding, and DoT must accept them. Spectrum pricing also remains pending. TRAI has proposed administrative spectrum allocation for up to five years and said providers should pay whatever DoT decides for satellite operators. It referred to its earlier proposal of 4% of adjusted gross revenue. India-based gateways, monitoring and lawful interception would remain conditions.

Direct-to-device service would let satellites connect directly to ordinary smartphones in areas without mobile towers. TRAI has recommended allowing mobile operators to use their existing spectrum for this purpose at no extra charge. This could extend connectivity beyond locations covered by terrestrial mobile networks.

In practice, a customer would use a regular phone rather than a dedicated satellite dish or terminal. The mobile operator would provide the service, while a satellite would communicate directly with the handset. The proposal also says the same frequency channel would need to be available across all 22 telecom circles. That is different from a conventional satellite connection built around a dish communicating with a gateway.

TRAI wants this direct-to-device use permitted without waiting for the 2027 World Radiocommunication Conference. The proposal is part of its wider satellite framework, not an already active entitlement. DoT would still need to accept the recommendations, and traffic, monitoring and lawful-interception rules would apply.

Radio spectrum consists of the wireless frequencies used to carry communications. A satellite gateway is a ground station that communicates with satellites and links their network to equipment on Earth. In the proposed model, gateways would form the Indian ground segment operated by the satellite network provider.

Spectrum rules matter because the satellite provider and its telecom partner need authorised frequencies to communicate. TRAI has proposed administrative allocation for up to five years. A provider could seek its own spectrum while naming its telecom partner, or use the partner’s existing spectrum only for that partner. The same channel would need to cover all 22 telecom circles for direct-to-device service.

Traffic rules protect control over communications carried by the system. TRAI says Indian user traffic must pass through gateways in India and cannot be routed or copied abroad, even if a local gateway fails. Providers must support real-time monitoring and lawful interception. These requirements explain why DoT and other authorities must regulate spectrum, routing and access.