The Centre is reportedly considering capping the number of subscribers a satellite system can serve in India. The move aims to address concerns from incumbent telcos, who fear satellite operators could bypass restrictions and enter the retail mobile broadband market, eating into their primary revenue streams.
According to officials, the Department of Telecommunications (DoT) may introduce norms requiring fresh approvals if satellite companies seek to expand capacity. Subscriber numbers would be determined based on capacity and per-user speed figures submitted by satcom operators when applying for permits.
The Telecom Regulatory Authority of India (TRAI) had earlier recommended administrative allocation of satcom spectrum for five years, extendable by two, with a 4 per cent adjusted gross revenue (AGR) fee and no upfront charge. TRAI argued that satellite services were still nascent and not in direct competition with terrestrial networks, but suggested terms and pricing could be revised after five years.
The DoT, however, believes conditions may need revision sooner if new technologies emerge or spectrum use expands beyond data and internet services. Recent advances in direct-to-mobile satellite connectivity have heightened telcos’ worries, as such services could mirror their offerings without government levies. For now, the Centre plans to allocate spectrum only for data and internet, not direct-to-mobile satellite services.
In addition to DoT approvals, satcom operators must also secure clearance from the Indian National Space Promotion and Authorization Centre (IN-SPACe) if they wish to expand capacity.
