The Telecom Regulatory Authority of India (TRAI) has recommended the Department of Telecommunications (DoT) for a new authorisation category for satellite network providers, who would supply network capacity to telecom operators and other eligible service providers but would not be allowed to serve consumers directly. Its recommendations open the door to direct-to-device (D2D) connectivity, using both satellite and terrestrial mobile spectrum, potentially reshaping India's satcom market by enabling deeper partnerships between satellite operators and traditional telecom companies. Under the recommended framework, authorised satellite communication network (SCN) providers can offer 'Satellite Communication Network as a Service' or SCNaaS to eligible service providers. Any licensee permitted to offer satellite-based services should be able to buy such capacity. The authorisation would cover the entire country for a maximum of 20 years, renewable for up to 20 years.
Further, SCN providers could seek fixed satellite service (FSS) spectrum for feeder links, and FSS and mobile satellite service (MSS) spectrum for user links, from the government. Feeder link spectrum would be assigned administratively. For user links, the provider must show that the service offered by its partner falls within the First Schedule of the Telecommunications Act. Spectrum would be assigned for up to five years, extendable by two years. Terms and pricing would stay valid for five years from the date the policy is notified. Any later revision would apply to all SCN providers, including existing ones. SCN providers could also use spectrum held by partnering service providers to offer SCNaaS to them, with the right to use the spectrum remaining with the partner.
Moreover, it has suggested that the government encourage smartphone manufacturers to incorporate the necessary satellite communication modules in future handsets sold in India, which will allow mobile phones to connect directly to satellites using L-band and S-band spectrum. It has noted that it followed the principle of regulatory parity between vertically integrated service models and unbundled shared network models. It has recommended an authorisation fee of 8% of adjusted gross revenue, with no minimum fee. Spectrum charges would be based on adjusted gross revenue, with an urban-rural differential for non-geostationary FSS, and an annual minimum of Rs 3,500 per MHz. No additional spectrum charge would apply to telecom operators for using their IMT spectrum for D2D services. Besides, service providers could deduct SCNaaS charges paid to SCN providers from their applicable gross revenue, subject to documentation. The entry fee would be Rs 37.5 lakh, with an initial guarantee of Rs 45 lakh, minimum equity and net worth of Rs 60 lakh each, and an application fee of Rs 10,000.
Further, satellite network providers would build infrastructure and sell capacity to licensed service providers, but could not serve consumers directly. Telcos such as Jio, Airtel and Vodafone Idea could buy that capacity, deduct the charges from their applicable gross revenue, and would hold a say in satellite-to-phone services, which need operators holding the relevant mobile spectrum across all 22 service areas to agree. Existing licensees could also supply capacity, so companies could straddle both layers.