Satellite communications majors Hughes, OneWeb and Nelco have reprtedly said the draft telecom service authorisation rules are inconsistent with the Telecommunications Act, 2023, by classifying global mobile personal communication by satellite (GMPCS) and very-small aperture terminal (VSAT) only as systems. They warned this would create an unworkable business environment for GMPCS and VSAT operators and investors, harm consumers, and impede efforts to bridge the digital divide.
Under the current Unified Licence (UL) regime, GMPCS and VSAT are treated as services. The draft “Telecommunications (Authorisation for Provision of Main Telecommunication Services) Rules, 2025” instead label them as systems/media/technology, an assumption the Broadband India Forum (BIF) termed “fallacious.”
BIF, whose membership includes satcom and technology firms such as Meta, Qualcomm and Tata Consultancy Services (TCS), noted the draft proposes to fold satellite-based telecoms into four main service authorisations (unified, access, internet and long-distance), based on the premise that satellite is “merely a technology or type of media” or a “satellite system.”
The Delhi-based association has sought a rethink to align with the telecom regulator’s original recommendations of 18 September 2024, and its further views in response to the DoT’s 28 February 2025 back reference, both advocating separate service authorisations for satellite-based telecom services.
BIF added that the satellite sector’s user base and revenues are tiny versus terrestrial networks; expecting a segment with 3,00,000 users to meet conditions designed for 1.19 billion users is “neither commercially viable nor proportionate.”
TRAI recommended a Rs 5 million entry fee for satcom companies, but the draft sets ~Rs 120 million—24 times higher. Likewise, the regulator proposed a Rs 5 million bank guarantee versus Rs 440 million in the draft, and a Rs 10 million net-worth threshold versus Rs 250 million—points that reinforce satcom players’ demand for a distinct authorisation framework.
Earlier this month, the Department of Telecommunications (DoT) issued draft rules for providing telecom services under an authorisation regime, under which companies would not need a licence to offer services.
The draft rules, issued under the Telecom Act, will not override the existing licensing framework and companies may opt between regimes.
Under the new approach, a company would be authorised to offer services, with terms and conditions notified separately under the Act. By contrast, the current system is contractual between DoT and the operator, with rules and regulations forming part of that contract.
Telcos have already flagged concerns with the authorisation model, arguing it could trigger regulatory uncertainty and dent investor confidence.
