TRAI recommends a new satellite network licence and opens the door to direct-to-phone services in India

· 2 min read

India's Telecom Regulatory Authority (TRAI) has set out how satellite operators could sell network capacity to licensed service providers and how mobile phones could connect directly to satellites.

The recommendations

On 5 November 2026 TRAI published its recommendations on a framework for a Satellite Communication Network (SCN) Provider Authorisation under the Telecommunications Act 2023. The work responds to a request from the Department of Telecommunications (DoT) in July 2025. TRAI consulted in April 2026 and received comments from 31 stakeholders.

Under the proposal, SCN providers could offer "Satellite Communication Network as a Service" to licensed operators, but could not sell directly to end users. The authorisation would be national and last up to 20 years, renewable for up to 20 more.

Spectrum

SCN providers could ask the government for satellite spectrum: fixed-satellite (FSS) spectrum for feeder links, and FSS or mobile-satellite (MSS) spectrum for user links. Feeder-link spectrum would be assigned administratively rather than auctioned. Assignments would last up to five years, extendable by two, with pricing terms fixed for the same period.

Direct-to-device

TRAI recommends allowing direct-to-device (D2D) services using L-band and S-band MSS spectrum. More significantly, it recommends permitting D2D using terrestrial mobile (IMT) spectrum in the 600, 700, 800, 900, 1800 and 2100 MHz bands without waiting for the World Radiocommunication Conference in 2027. This would be on a non-interference basis and only where mobile operators holding the relevant channel across all 22 licensed service areas agree.

Fees

TRAI proposes an authorisation fee of 8% of adjusted gross revenue with no minimum, and an annual minimum spectrum charge of Rs 3,500 per MHz where the government assigns FSS or MSS spectrum. No extra spectrum charge would apply when an operator's existing mobile spectrum is used for D2D.

Next steps

The recommendations are not binding. They go to the DoT, which must decide whether to adopt them.

Why it matters financially

  • Fees: an authorisation fee of 8% of AGR, a minimum spectrum charge of Rs 3,500 per MHz a year, and an entry fee of Rs 37.5 lakh, with net worth and equity requirements of Rs 60 lakh each.
  • Market structure: separating satellite networks from retail services could let India's mobile operators buy capacity from satellite companies rather than build their own systems, changing the economics for Starlink, OneWeb and others.
  • Spectrum value: allowing D2D on existing mobile spectrum, with no extra charge, could add revenue opportunities for operators holding nationwide holdings in those bands.

Sources

  1. TRAI releases Recommendations on the Framework for Satellite Communication Network Provider Authorisation (Press Release No. 151/2026) (Telecom Regulatory Authority of India)
  2. TRAI recommends new satellite network licence and spectrum rules (Voice&Data)
  3. TRAI proposes new satcom authorisation, spectrum framework (ETTelecom)

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