The Department of Telecommunications (DoT) is in the final stages of formulating the rules for the administrative allocation of satellite spectrum in India and is expected to roll them out soon. This development follows the recommendations from the Telecom Regulatory Authority of India (TRAI) regarding the pricing and terms for assigning this spectrum.  

While the detailed rules for allocation are being finalized, the implementation hinges on the Cabinet’s approval of the pricing mechanism. Sources indicate that the DoT is keen to release a draft of these rules for stakeholder feedback in the near future, with the final notification anticipated within the next couple of months.

The proposed framework suggests that satellite spectrum will be allocated on a first-come, first-served (FCFS) basis. Officials believe this model is suitable as satellite spectrum is a shared resource, mitigating concerns about competition that might arise with terrestrial spectrum allocation. However, managing interference will be a critical aspect of the operational guidelines.  

TRAI has recommended a spectrum usage charge of 4% of the Adjusted Gross Revenue (AGR) for satellite communication providers for a five-year term, which could be extended. Additionally, a minimum annual spectrum fee of ₹3,500 per MHz has been proposed. For Non-Geostationary Satellite Orbit (NGSO) services in urban areas, an extra charge of ₹500 per subscriber annually is recommended, with exemptions for rural and remote areas to encourage wider service reach.  

This policy shift is significant for India’s burgeoning space sector. Companies like Starlink, Eutelsat OneWeb, and Jio Satellite Communications, who have already secured necessary licenses and complied with security norms, are awaiting spectrum allocation to commence commercial operations. Starlink recently received a letter of intent for a satcom permit and will be allocated test spectrum for security compliance demonstration.  

India’s space economy is projected to grow substantially, reaching an estimated USD 44 billion by 2033, increasing its global market share from 2% to 8%, according to the space regulator IN-SPACe. The administrative allocation of spectrum is expected to accelerate the rollout of satellite internet services, particularly in underserved and remote regions, complementing terrestrial networks and proving crucial for disaster response.  

Key Highlights:

• The DoT is nearing the finalization of rules for allocating satellite spectrum, which will be done administratively.  
• The allocation is likely to follow a first-come, first-served basis.
• TRAI has recommended a 4% AGR spectrum usage fee for a five-year term, with a minimum annual fee.  
• This move is expected to boost the satellite communication sector in India, benefiting companies like Starlink, OneWeb, and Jio Satellite Communications.