With Bharti Airtel and Reliance Jio partnering strategically with Starlink, the Telecom Regulatory Authority of India (TRAI) is expected to fast-track its recommendations on satellite spectrum pricing. Sources indicate that the regulator may advise satellite companies to focus initially on serving mobile dark areas—regions without terrestrial network coverage. This approach aims to address concerns raised by Jio, Airtel, and other telecom operators about global satellite communication players like Starlink and Amazon Kuiper potentially capturing urban market share without participating in spectrum auctions.
TRAI’s cautious stance stems from the evolving nature of satellite communication technology. Currently, satellite signals are not directly compatible with standard mobile devices, and satcom services remain significantly more expensive than traditional mobile plans. However, as technology advances, this could change, prompting TRAI to retain the flexibility to adjust its regulations. By restricting satellite services to areas without mobile coverage, the regulator can assess market dynamics and the role of satellite operators in bridging the digital divide. Given that satellite broadband is primarily intended for remote locations where fibre or wireless connectivity is unfeasible, this phased approach would help test and monitor the effectiveness of satellite networks.
At present, four companies are competing to provide satellite internet services in India: Eutelsat OneWeb, Jio-SES, Starlink, and Amazon Kuiper. While Bharti Enterprises-backed OneWeb and Jio-SES have received regulatory approvals, Starlink and Kuiper are still awaiting clearance.
Since satellite broadband is expected to be significantly more expensive than fibre-based broadband, government subsidies may be necessary to make it affordable for rural and remote communities. A potential funding source could be the Digital Bharat Nidhi initiative, which supports rural connectivity projects. Estimates from Bernstein suggest that Starlink’s pricing is 10 to 14 times higher than that of India’s leading broadband providers. A 50-200 Mbps Starlink connection currently requires an upfront payment of ₹52,242, followed by a monthly charge of ₹10,469. Including taxes and levies, the annual cost reaches ₹2,15,600. In contrast, similar-speed fibre broadband plans from Airtel and Jio cost between ₹11,000 and ₹15,000 per year.
Analysts believe that Starlink’s direct-to-cell technology, which utilizes specially designed satellites to act as space-based cell towers, could complement existing telecom networks rather than replace conventional mobile services. This technology may allow Starlink to serve as a roaming partner for Airtel and Jio in remote regions. However, since direct-to-cell technology requires telecom spectrum access to be compatible with existing smartphones and terrestrial networks, any such collaboration would require regulatory approvals and structured agreements with telecom operators.
Bharti Enterprises chairman Sunil Bharti Mittal recently emphasized that satellite technology should be integrated into the telecom sector under similar regulatory conditions. At the India Mobile Congress last year, he joined Reliance Industries chairman Mukesh Ambani in advocating that satellite operators serving urban consumers should be subject to the same licensing regulations as telecom operators.
“If satellite companies want to serve elite urban consumers, they must acquire telecom licences, purchase spectrum, and pay license fees just like telecom operators,” Mittal stated.
According to Morgan Stanley, satellite communications could generate annual revenues of $19 billion (approximately ₹1.6 lakh crore) from India’s underserved broadband market. With only 3% of the country’s 298.7 million households currently using fixed broadband, a massive untapped market of over 290 million households remains.
