Satcom companies raise red flag as draft spectrum rules omit satellite broadband

The satellite communication industry has raised concerns with the government over the exclusion of commercial satellite internet services from draft non-auction spectrum assignment rules released last week.

These services fall under the Global Mobile Personal Communication by Satellite (GMPCS) licence framework, which covers satellite-based broadband. While companies such as OneWeb, Starlink and Jio Satellite Communications have already secured this licence, they have long been waiting for the government to finalize the non-auction allocation rules and pricing.

T.V. Ramachandran, president of Broadband India Forum (BIF) wrote in a letter to telecom secretary Amit Agrawal on Tuesday, “The absence of an express reference to GMPCS in the draft rules is extremely concerning to the sectoral players and investors and appears to merit urgent reconsideration and requisite clarification so as to ensure complete alignment with the provisions allowed under Entry No. 16 in the First Schedule of the Telecommunications Act, 2023.” BIF represents companies such as OneWeb, Hughes, Nelco and Amazon, among others.

Under its First Schedule, the Telecommunications Act 2023 allows the government to bypass auctions and administratively assign spectrum for specific sectors, including national security, defense, law enforcement, radio backhaul, and satellite-based broadband (GMPCS). Last week, the Department of Telecommunications (DoT) released draft rules for this non-auction allocation route to gather feedback from industry stakeholders.

However, the draft rules excluded the GMPCS framework needed for commercial internet services, further delaying the commercial rollout of satellite internet by major players like Starlink, OneWeb, Jio Satellite, and Amazon.

Security concerns

A government official, who did not wish to be named, said, “Spectrum assignment and pricing rules for commercial satellite internet services are under consideration. The government is evaluating national security concerns such as data leakage outside the geography before giving a final go-ahead.” The recommendations of the telecom regulator on satellite internet spectrum assignment are being looked at, the official added.

The industry has urged the government to explicitly include GMPCS in the First Schedule of the draft rules, in line with the Act, and to map it to the relevant annexures governing spectrum assignment, terms and conditions, and pricing. It has also sought amendments to related provisions to ensure a clear and unambiguous framework for GMPCS services under the administrative allocation route.

In his letter, Ramachandran cited the Supreme Court’s judgement in State of Tamil Nadu vs P. Krishnamurthy, 2006, which said the subordinate legislation must remain consistent with the enabling Act and cannot curtail or depart from the scope of the parent statute.

“It is a settled principle in law and legislation that subordinate legislation is intended to give effect to the provisions and objectives of the parent statute. Rules framed under an Act are to operate within the framework established by the legislature and are expected to faithfully implement the categories and policy choices expressly incorporated in the statute,” Ramachandran said, seeking clarification from the government.

Spectrum pricing

In May 2025, the Telecom Regulatory Authority of India (Trai) recommended that satellite communication companies pay 4% of their adjusted gross revenue (AGR) as spectrum charges to the government. They will also have to pay a licence fee to the government at 8% of the AGR, as per the authorisation terms.

To deter companies from encroaching on urban markets, Trai also recommended an additional annual fee of ₹500 per subscriber for urban fixed satellite service providers.

The regulator said the government can provide spectrum to satcom firms in the frequency of C-band (4-8 GHz), Ku-band (10-15 GHz), Ka-band (17-31 GHz), Q/V band (33-75 GHz), and L&S band (1-4 GHz). Additionally, Trai proposed that certain bands (27.5-28.5 GHz and 42.5-43.5 GHz) and satellite gateways only be set up in remote, unpopulated regions where commercial telecom services are unlikely to operate.