Satellite-based communication (satcom) networks have long complemented terrestrial connectivity, supporting defence communications, television broadcasting, maritime services and enterprise-grade applications such as automated teller machines and remote branch connectivity. More recently, satellite-based internet connectivity has emerged as a promising alternative to terrestrial broadband networks, particularly in rural and remote regions where mobile towers and terrestrial infrastructure are often financially unviable. Further, advances in low earth orbit (LEO) constellations have significantly improved the latency performance of satellite broadband, enabling data-intensive and latency-sensitive applications such as internet of things, cloud computing and artificial intelligence.
In line with global trends, the Indian satcom sector has also witnessed considerable momentum in recent years. The past year, in particular, saw a flurry of activity driven by a combination of commercial developments, regulatory deliberations and technological advancements. A key development was the grant of the global mobile personal communication by satellite license to the US-based aerospace company SpaceX to offer its Starlink satellite services in India. Policy and regulatory discussions during the year focused on the assignment and pricing of satellite spectrum, the tenure and reviewability of spectrum usage rights, and the need to ensure a level playing field between satellite-based and terrestrial service providers. Technological developments within the domestic ecosystem also gained momentum, with Indian operators and system integrators advancing work on satellite ground infrastructure, user terminals and network integration capabilities.
A look at the key highlights in the Indian satcom sector in 2025…
Policy and regulatory flux in the satcom licensing framework
Over the past year, even as the broader liberalisation of the space sector envisaged under the Indian Space Policy, 2023, continued to facilitate greater private and international participation across the satellite value chain, the Indian satcom sector entered a phase of heightened policy and regulatory churn. The Telecom Regulatory Authority of India (TRAI), the Department of Telecommunications (DoT) and various industry associations were actively engaged in shaping an appropriate licensing and regulatory framework for satellite communications. In its recommendations issued in May 2025, TRAI proposed the administrative allocation of satcom spectrum for a period of five years, extendable by two years, with no upfront entry fee and an annual spectrum usage charge of 4 per cent of adjusted gross revenue (AGR). The regulator argued that satellite services are nascent and not yet in direct competition with terrestrial networks, while noting that the terms and pricing could be revisited after five years. TRAI further recommended a uniform AGR rate for both geostationary orbit and non-geostationary orbit services, irrespective of whether the operator is state-owned or private.
The Cellular Operators Association of India (COAI), however, strongly opposed TRAI’s proposals, arguing that a 4 per cent AGR-based levy without any upfront payment goes against established administrative allocation practices and lacks empirical justification, international benchmarking, or economic rationale. COAI also maintained that satellite broadband services would compete directly with terrestrial networks rather than merely complementing them. In contrast, the Broadband India Forum, representing satellite and large technology firms, rejected telecom operators’ objections, contending that the notion of a uniform, level playing field is misplaced given fundamental differences in technology, service models, infrastructure costs and spectrum usage characteristics.
DoT subsequently referred several of TRAI’s recommendations back to the regulator, seeking reconsideration. It proposed a higher annual spectrum levy of 5 per cent, along with a 1 per cent discount for operators serving border, hilly, or other hard-to-reach regions. DoT also suggested waiving a Rs 500 per-connection annual charge for urban satellite users, subject to the fulfilment of rural connectivity obligations. Meanwhile, it deliberated on imposing caps on the number of subscribers served by satellite systems in India, along with requirements for fresh approvals in the event of capacity expansion. The government also considered restricting satellite spectrum allocation to data and internet services, excluding direct-to-mobile satellite connectivity.
Starlink’s entry and industry collaborations
Commercial activity in the Indian satcom sector gained momentum over the past year following the entry of SpaceX-owned Starlink, which received a license to launch satellite broadband services in India and subsequently secured provisional spectrum for trials. Alongside regulatory progress, Starlink initiated several partnership discussions. It engaged with RailTel Corporation of India Limited to explore the delivery of retail broadband services in remote regions using satellite connectivity, while RailTel evaluated the use of Starlink’s satellite broadband as backhaul support to extend connectivity in hard-to-reach areas through its RailWire platform. In addition, Starlink signed a letter of intent with the Maharashtra government to expand connectivity in underserved regions lacking fibre infrastructure.
Meanwhile, Bharti Airtel-backed Eutelsat OneWeb and Reliance Jio’s wholly owned subsidiary Jio Satellite Communications Limited, both of which had received commercial licenses prior to Starlink, were granted provisional spectrum for trials during the year and are awaiting final commercial spectrum allocation. Industry collaboration also expanded during this period. Airtel announced an agreement with SpaceX to bring Starlink’s high speed internet services to its customers in India. Under the arrangement, Airtel and SpaceX will explore the distribution of Starlink equipment through Airtel’s retail network, the provision of satellite services to enterprise customers and opportunities to connect communities, schools and healthcare centres, particularly in remote and rural areas.
State-owned Bharat Sanchar Nigam Limited (BSNL) also advanced its satellite initiatives. In addition to participating in trials and expanding direct-to-device satellite services to enable voice, data and internet access on standard handheld devices without specialised terminals, BSNL strengthened its collaboration with satellite internet provider Viasat India. As part of this partnership, BSNL and Viasat are set to deploy Ka-band satellite systems for the Indian Navy under a satellite communications equipment modernisation programme.
Rapid advancements in satcom technology
Driven by the need for lower latency, higher bandwidth and more reliable coverage across remote and underserved regions, India began reimagining its satellite internet landscape in 2025, moving beyond a traditional reliance on geostationary earth orbit (GEO) satellites towards LEO and medium earth orbit (MEO) systems. LEO satellites typically operate at altitudes of 400-2,000 km above the earth, enabling significantly lower latency and making them well-suited for broadband internet services. LEO operators active in the Indian market, such as OneWeb and Starlink, are expected to offer lower latency and higher throughput compared with traditional GEO systems. MEO satellites, operating at altitudes of 8,000-20,000 km, offer wider coverage than LEO satellites, albeit with moderately higher latency. In parallel, India moved to reserve orbital slots and spectrum resources to support future domestic satellites, particularly in the non-geostationary satellite orbit segment, with the objective of strengthening the competitiveness of Indian players in the expanding global satcom market.
Over the past year, the government also expedited the establishment of a Rs 9.3 billion satcom monitoring facility to track domestic and foreign satellites operating over India. The facility is aimed at reducing interference and strengthening coordination and security as the global LEO market expands. In addition, the government has begun examining the role of high-altitude platform systems (HAPS) within the broader non-terrestrial network ecosystem. Operating in the stratosphere and closer to the Earth than satellites, HAPS can deliver lower-latency connectivity suitable for real-time communications and targeted capacity augmentation. On the regulatory front, TRAI has started factoring high-altitude and other non-terrestrial networks into its consultations while evaluating suitable frequency bands and regulatory models.
Outlook
Persistent constraints associated with terrestrial network deployment, including right-of-way challenges, high capital expenditure, and weak commercial viability in low-density and remote regions, have renewed interest in satellite-based connectivity alternatives. The Indian satcom sector has gathered considerable momentum, marked by active efforts to develop an enabling policy and regulatory framework alongside growing commercial engagement from both domestic and global players.
At the same time, the sector continues to face several structural and operational challenges. These include regulatory uncertainty surrounding the mode of satellite spectrum assignment and pricing, the tenure and reviewability of spectrum usage rights, and the need to ensure a level playing field between satellite-based and terrestrial service providers. High capital costs associated with satellite deployment, the need for specialised user terminals, the development of viable business models and integration challenges with existing terrestrial networks further complicate large-scale commercial adoption.
Looking ahead, the Indian satcom sector is poised for expansion as several players gear up for the commercial launch of satellite-based broadband services. The pace and scale of growth, however, will depend critically on the timely resolution of regulatory, technical and commercial challenges, as well as on policy clarity that balances innovation, competition and long-term investment incentives.
