Trai proposes framework for satellite-to-phone services

New Delhi: The telecom regulator has proposed a framework that could allow smartphones to connect directly to satellites, extending connectivity to areas beyond the reach of mobile networks.

The recommendations by Telecom Regulatory Authority of India (Trai) could also create new business opportunities for telecom operators, internet service providers (ISPs) and satellite communication companies such as Tata’s Nelco, as well as global players including Starlink, Amazon Leo and Eutelsat OneWeb. It would allow these companies to expand their offerings and tap new revenue streams through satellite-based connectivity services, once allowed.

Separately, satellite internet providers await government security clearances and spectrum allocation to begin offering fixed broadband services in India. Companies including Starlink, Eutelsat OneWeb and Jio Satellite have yet to launch such services.

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Under the proposed framework, satellite companies will provide the network infrastructure, while telecom operators and other service providers will offer connectivity to consumers. To enable this arrangement, Trai has recommended a new authorization category, Satellite Communication Network (SCN) Provider Authorisation, under Section 3(1)(b) of the Telecommunications Act, 2023.

For instance, satellite companies such as Starlink and Amazon Leo could provide network capacity to a telecom operator or satellite internet companies such as Nelco, which could then use it to offer connectivity to their subscribers.

SCN providers will be allowed to offer Satellite Communication Network-as-a-Service (SCNaaS) to eligible telecom operators and service providers. In simple terms, they will build and operate satellite networks and provide network capacity to telecom companies, which can then directly sell to consumers.

Two models for connectivity

Trai has proposed two types of satellite-based direct-to-device (D2D) services. The first, mobile satellite service (MSS)-based D2D, will use dedicated satellite spectrum in the L-band and S-band to connect compatible smartphones directly to satellites. The second is telecom spectrum-based D2D, under which satellites will use mobile spectrum already assigned to telecom operators, which is prominent globally.

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For mobile spectrum-based services, Trai has identified the 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz and 2100 MHz bands. The spectrum rights will remain with the telecom operators. They will not face additional spectrum charges for using their already-assigned IMT spectrum for satellite-based D2D services.

“After acceptance of these recommendations, the Central Government should encourage smartphone handset manufacturers to include the necessary modules for supporting the applicable MSS bands in future smartphone handsets sold in India,” Trai said in its recommendations to the department of telecommunications (DoT).

The recommendations, issued on Thursday, will now be evaluated by DoT.

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Trai has also proposed allowing existing entities holding eligible telecom licences and authorisations, including access service, internet service and long-distance service authorisations, to provide SCNaaS, subject to meeting the prescribed eligibility, technical, operational and security requirements.

Telecom operators such as Reliance Jio, Bharti Airtel and Vodafone Idea could also use satellite network infrastructure to extend coverage and explore new services. For example, Airtel can partner with its own entity OneWeb to provide the services, whereas Vodafone Idea has entered into a strategic arrangement with AST SpaceMobile to enable D2D satellite-based cellular connectivity in India.

For mobile spectrum-based D2D services, however, satellite companies will need agreements with telcos holding the relevant mobile spectrum. The rights to use this spectrum will remain with the telecom operators. The model is currently used by Starlink globally, which leverages the spectrum of mobile operators to provide D2D services.

The regulator has recommended administrative assignment of fixed satellite service (FSS) and MSS spectrum to SCN providers, going against the stance of Jio, which wanted the government to auction the spectrum specifically for D2D.

The proposed assignment of spectrum will be for up to five years, with a possible extension of another two years. The SCN provider authorisation, meanwhile, will be valid for up to 20 years.

Trai has proposed an authorisation fee of 8% of adjusted gross revenue (AGR) for SCN providers, with no minimum authorisation fee. It has also recommended an annual minimum spectrum charge of ₹3,500 per MHz where the spectrum is assigned by the government.

The regulator has recommended an entry fee of ₹37.5 lakh for obtaining the new SCN Provider Authorisation. The other proposed financial requirements include an initial bank guarantee of ₹45 lakh, minimum equity of ₹60 lakh and minimum net worth of ₹60 lakh. The application processing fee has been set at ₹10,000.

Security requirements will include routing satellite traffic originating from or terminating in India through gateways located within the country. Satellite network providers will also have to comply with lawful interception, traffic monitoring and other security requirements, including the ability to block satellite signals in government-notified security-sensitive areas.

The recommendations have now been submitted to the Department of Telecommunications (DoT), which will take the final decision on the proposed framework.

In its recently concluded earnings call, Jio said India has about 1 billion mobile broadband users.