The Telecom Regulatory Authority of India (TRAI) has proposed to allocate satellite spectrum for commercial communication services for an initial period of five years. This announcement comes as Elon Musk’s Starlink project moves closer to launching its high-speed internet services in India.
The proposed allocation may be extended for an additional two years based on market trends, according to the regulator’s statement released on Friday.
Furthermore, TRAI has recommended that telecom operators pay four percent of their adjusted gross revenue for both geostationary orbit-based fixed satellite services and mobile satellite services. This is to be subject to a minimum annual spectrum fee of INR 3,500 (approximately $41) per megahertz (MHz).
For fixed satellite services operating in non-geostationary orbits, an additional charge of 500 rupees per subscriber each year is suggested for urban regions, while rural and remote areas would be exempt from this fee.
The timing of these recommendations aligns with Musk’s efforts to launch Starlink across the Indian market. He has previously requested the Indian government to provide spectrum for a period of 20 years to facilitate “affordable pricing and long-term business strategies,” as indicated in Starlink’s public disclosures.
In a related development, sources reported in March that TRAI had considered a shorter licensing timeframe in order to adapt to the evolving landscape of the telecom sector.
In a notable partnership, Musk and Indian billionaire Mukesh Ambani formalized an agreement in March that will enable the marketing of Starlink devices in Reliance stores, thus providing a significant distribution channel.
Previously, Ambani and Musk were competitors; Ambani’s telecommunications arm had sought for more competitive auction processes for spectrum, contrasting Musk’s preference for administrative allotment.
Bharti Airtel, recognized as India’s second-largest telecom operator, has also advocated for a license duration of three to five years. Additionally, the company has entered into a distribution agreement with Musk for Starlink services.
© Thomson Reuters 2025
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