TRAI May Restrict Starlink to Rural Areas; Satcom Pricing Rules Coming Soon
TRAI is expected to recommend that satellite operators like Starlink initially focus on mobile dark regions without terrestrial network coverage. This move aims to address concerns from Jio and Airtel about global satcom players entering urban markets without participating in spectrum auctions. Given the evolving nature of satellite technology, TRAI wants to retain regulatory flexibility as advancements continue. By limiting satellite services to remote areas, the regulator can assess market dynamics and their role in bridging the digital divide.
Currently, Eutelsat OneWeb, Jio-SES, Starlink, and Amazon Kuiper are competing in India’s satellite broadband sector, though only OneWeb and Jio-SES have received regulatory approvals so far. Satellite broadband remains significantly more expensive than fiber broadband, with Starlink’s pricing estimated to be 10–14 times higher. To make these services more accessible, government subsidies like Digital Bharat Nidhi may be required. Starlink’s direct-to-cell technology could complement existing telecom networks by acting as a roaming partner, but this would need regulatory approval and structured agreements with telecom providers.
Bharti’s Sunil Mittal and Reliance’s Mukesh Ambani argue that satellite operators targeting urban consumers should comply with telecom regulations. With only 3% of India’s 298.7 million households currently using fixed broadband, the satellite communications market holds immense potential, projected to generate $19 billion annually.
TRAI May Restrict Starlink to Rural Areas; Satcom Pricing Rules Coming Soon
India’s telecom regulator, TRAI, is likely to recommend that global satellite internet providers like SpaceX’s Starlink and Amazon’s Kuiper initially focus on connecting remote, “mobile dark” regions—areas lacking traditional telecom networks—rather than urban markets. This move aims to address competition concerns raised by Indian telecom giants Reliance Jio and Bharti Airtel, who argue that satellite players should follow the same rules, including purchasing spectrum via auctions, if they intend to serve cities.
Why the Restrictions?
Jio and Airtel fear that satellite providers could undercut them in urban markets without investing in costly spectrum licenses. However, TRAI recognizes satellite internet’s potential to bridge India’s digital divide in rural areas, where laying fiber or building telecom towers is impractical. By limiting satellite services to underserved regions first, the regulator aims to study their impact before expanding their role. TRAI is also cautious due to rapidly evolving satellite technology. Currently, standard smartphones cannot directly receive satellite signals, and services remain expensive. However, advancements like direct-to-cell technology—where satellites act as “space-based cell towers”—could change this, prompting TRAI to maintain flexible policies.
High Costs & Need for Subsidies
Satellite broadband is significantly more expensive than traditional services. For instance, Starlink charges ₹52,242 upfront plus ₹10,469 monthly (totaling ₹2.15 lakh annually) for speeds of 50–200 Mbps. In contrast, Airtel and Jio offer fiber plans at ₹11,000–₹15,000 per year for similar speeds. Analysts note that satellite internet costs 10–14 times more, making it unaffordable for most rural users. To address this, the government may need to subsidize services through initiatives like the Digital Bharat Nidhi, which funds rural connectivity projects.
Players in the Race
Four companies are competing to launch satellite services in India:
- Eutelsat OneWeb (backed by Bharti Airtel)
- Jio-SES (a Reliance Jio partnership)
- Starlink (Elon Musk’s SpaceX)
- Amazon Kuiper
While OneWeb and Jio-SES have obtained regulatory approvals, Starlink and Kuiper are still awaiting clearance.
Collaboration Over Competition?
Despite initial friction, satellite technology could complement existing telecom networks. For example, Starlink’s direct-to-cell technology might help Jio and Airtel extend coverage to remote areas through roaming partnerships. However, this would require satellites to use spectrum compatible with current smartphones, necessitating clear regulatory guidelines. TRAI’s phased approach allows time to evaluate such synergies without disrupting the telecom market.
Industry Leaders Push for Fair Play
Bharti Airtel’s Sunil Mittal and Reliance’s Mukesh Ambani insist that satellite firms targeting cities should follow telecom regulations—buy spectrum, pay licensing fees, and adhere to industry rules. “If they want urban customers, they must play by the same rules,” Mittal stressed. Morgan Stanley estimates that India’s satellite broadband market could generate $19 billion annually, given that only 3% of households currently use fixed broadband, leaving 290 million homes unconnected.
What’s Next?
TRAI’s upcoming recommendations on spectrum pricing and regulations will shape how satellite services are rolled out. By prioritizing rural coverage, India can test the technology’s viability while protecting telecom investments. However, subsidies and tech partnerships will be key to making satellite internet both affordable and effective. As the sector evolves, TRAI’s balanced approach could serve as a global model for integrating satellite connectivity without stifling competition.
In summary, while satellite internet holds great promise for connecting India’s remotest corners, its expansion into urban areas faces regulatory hurdles. With cautious policies and collaboration, it could become a vital tool for digital inclusion—without disrupting the telecom landscape.
