The Cellular Operators Association of India (COAI) has reportedly raised objections to the Telecom Regulatory Authority of India’s (TRAI) recent recommendations on spectrum charges for satellite-based communication services, stating that the move risks distorting India’s digital infrastructure landscape by favouring non-terrestrial players.
In a letter to the Department of Telecommunications (DoT) dated May 29, 2025, the COAI said TRAI’s proposals favour commercial non-geostationary orbit (NGSO) satellite operators at the expense of terrestrial broadband providers, potentially undermining a level playing field. Representing major private telecom players, Bharti Airtel, Reliance Jio, and Vodafone Idea Limited (Vi) the association warned that the recommendations could distort market dynamics in favour of satellite players.
TRAI has recommended a pricing model that includes the higher of 4 per cent of adjusted gross revenue (AGR) or Rs 3,500 per megahertz (MHz) annually, plus Rs 500 per urban user each year. COAI argued these charges are significantly lower than those applied to geostationary (GSO) VSAT services, despite NGSO systems offering similar broadband services. Moreover, terrestrial operators are required to pay spectrum auction prices that can represent 18 to 53 per cent of AGR.
It has argued that while terrestrial operators are bound by long-term spectrum payment commitments extending over a 20-year period at the revenues from over a billion subscribers, NGSO operators are not subject to similar financial or operational obligations, yet stand to benefit from long-term (up to 7 years) spectrum rights.
COAI criticised TRAI for not providing a clear rationale for the proposed pricing and said that it is not aligned with DoT’s policy objectives. The group urged the formation of a DoT-led committee to review the recommendations and insisted that pricing for satellite and terrestrial services should be comparable to avoid arbitrary differentiation.
The association also challenged TRAI’s argument that NGSO systems are complementary to terrestrial networks and necessary for bridging the digital divide. COAI cited the DoT’s August 2024 communication, clarifying that it did not claim NGSO satellites alone would bridge the digital gap. It further pointed out that TRAI failed to mandate rural rollout obligations for satellite operators, despite using digital inclusion as a justification for low pricing.
COAI highlighted examples such as Starlink and Amazon’s Project Kuiper, arguing that these satellite players are directly competing in urban and enterprise broadband markets. It referenced Starlink’s rapid expansion in Kenya, where it became the seventh-largest ISP within 18 months, which led to regulatory corrections, including a proposed 1,000 per cent hike in licence fees to restore market balance.
Finally, COAI criticised TRAI’s justification of low spectrum pricing based on device ecosystem maturity, stating that device cost has never been a consideration in determining spectrum value.
