Satellite Internet in India Faces Delay Amid Regulatory Dispute, Benefits Await Users

India’s long-awaited satellite internet services may face further delays, affecting major players like Starlink, Jio, and Airtel. The primary reason is an ongoing dispute between the Department of Telecommunications (DoT) and TRAI over spectrum pricing. This disagreement could delay the launch by 3 to 6 months, impacting plans to bring high-speed internet to remote and underserved areas.

Approvals in Place, but Spectrum Pricing Stalls Launch
According to the Times of India, companies including Starlink, OneWeb, and Jio Satellite have secured most of the required approvals, such as GMPCS licenses and clearance from space regulators. While technically ready for commercial operations, the key hurdle remains spectrum allocation and pricing, along with compliance to security and capacity norms. Shivaji Chatterjee, CEO of Hughes Communications India, noted that differences over Low Earth Orbit (LEO) satellite spectrum pricing between TRAI and DoT must first be resolved by a standing committee, followed by approval from the Digital Communications Commission and ultimately the Telecom Minister or Cabinet.

Lengthy Rule-Making Process
Once approvals are granted, the Wireless Planning & Coordination Wing will draft detailed regulations. A 30-day public consultation will follow, during which conventional telecom companies may attempt to influence rules, arguing that satellite providers should follow the same regulations. This procedural complexity is causing delays, keeping high-speed internet out of reach for rural communities eager for connectivity.

The Spectrum Pricing Dispute
TRAI initially recommended that satellite companies pay 4% of their revenue to the government for spectrum usage, ensuring uniformity. DoT proposed raising this to 5%, with a 1% discount for companies meeting specific rural deployment targets. While this adjustment has minimal impact on government revenue, it addresses concerns of existing telecom operators.

Benefits of Satellite Internet
Satellite internet delivers connectivity via satellites orbiting in space, with users installing a small home dish to send and receive signals. Unlike traditional networks, it does not rely on cables or towers, making it ideal for remote villages, mountains, or maritime regions. The service can be deployed quickly, remains operational during natural disasters, and provides global coverage. Services like Starlink also promise high-speed internet, bridging the digital divide across India.