TRAI Proposes New Satellite Communication Network Provider Licence with ₹37.5 Lakh Entry Fee and 8% AGR Licence Fee

Key facts

• TRAI (Telecom Regulatory Authority of India) released recommendations on 6 November 2026 for a 'Satellite Communication Network (SCN) provider authorisation' under the Telecommunications Act, 2023, allowing companies to build and operate satellite communication networks in India and rent them to licensed telecom operators without selling services directly to the public.
• If the Department of Telecommunications (DoT) accepts the recommendations, global satellite firms such as Starlink and Eutelsat OneWeb could enter India purely as network providers, while telecom companies like Reliance Jio and Bharti Airtel could offer satellite services without building their own satellite networks.
• To be eligible, a company must have satellite capacity authorised by the Department of Space, be a subsidiary of such a company, or have an agreement to run its gateways in India; the licence would be national, valid for 20 years and renewable, and would not permit launching or operating satellites or direct sale to consumers.
• The SCN provider would operate the ground segment in India, including gateway earth stations, network equipment and spectrum, and rent the network to licensed telecom companies who would sell satellite internet, calls or messaging under their own brands and handle billing and complaints.
• TRAI proposed that the SCN provider could either seek its own spectrum from DoT, naming the partner it would serve, or use the partner's existing spectrum only to serve that partner; spectrum would be assigned administratively (not auctioned) for up to five years.
• TRAI recommended DoT decide on applications within 30 days once security clearances are in place, and proposed an entry fee of ₹37.5 lakh and a licence fee of 8% of adjusted gross revenue; spectrum pricing is pending on TRAI's May 2025 proposal of 4% of adjusted gross revenue.
• TRAI recommended that telecom companies be allowed to deduct payments made to SCN providers from their own revenue for fee calculation, so the same money is not charged twice.
• TRAI also recommended allowing direct-to-device services connecting satellites directly to regular smartphones, with mobile operators permitted to use their existing spectrum at no extra charge without waiting for the 2027 World Radiocommunication Conference, provided the same frequency channel is available across all 22 telecom circles.
• Under the proposal, all traffic from users in India must pass through gateways located in India and not be routed or copied abroad even if a local gateway fails; providers must allow real-time monitoring and lawful interception, and gateways must be running within 12 months of approval.
• The recommendations are not binding and would take effect only if DoT accepts them.