India’s satellite broadband market moves closer to commercial services after DCC approves the spectrum pricing framework.
India has moved a major step closer to commercial satellite broadband services after the Digital Communications Commission (DCC) approved a spectrum usage charge of 5% of adjusted gross revenue (AGR) for satellite communication services.
The charge will be reduced to 4% of AGR for operators serving government-notified rural and remote areas. The DCC has also approved an initial spectrum assignment period of five years, with an option to extend it by another two years.
The proposal will now move through the Department of Telecommunications (DoT) and the inter-ministerial process before the government seeks final Cabinet approval. Satellite operators will also have to satisfy the required security and regulatory conditions before launching commercial services in India.
DCC Approves 5% AGR Charge for Satcom Spectrum
The DCC’s decision settles one of the most closely watched issues surrounding India’s satellite broadband framework: how much operators should pay for spectrum.
Under the approved framework, satellite communication operators will pay a spectrum usage charge equivalent to 5% of their AGR. Operators providing services in designated rural and remote areas will receive a one-percentage-point reduction, bringing the effective charge to 4% of AGR for those operations.
The decision differs from the Telecom Regulatory Authority of India’s earlier recommendation of a 4% AGR-based charge. TRAI had also proposed an additional annual charge of Rs 500 per urban subscriber for certain non-geostationary satellite services.
The government rejected the urban subscriber charge, citing difficulties in distinguishing between rural and urban users and implementing such a system.
Satellite Spectrum to Be Assigned for Five Years
The DCC has also agreed to a five-year spectrum assignment period, with the possibility of a two-year extension.
Spectrum for eligible satellite services will be assigned through an administrative, non-auction route rather than through conventional spectrum auctions. This approach is consistent with the framework under the Telecommunications Act for satellite spectrum.
The longer assignment period is important for satellite operators because building and deploying satellite networks requires substantial upfront investment. A defined spectrum tenure provides operators with greater visibility as they plan commercial networks and services.
Starlink, OneWeb and Jio Move Closer to Commercial Launch
The DCC decision brings several satellite broadband companies closer to launching commercial services in India.
Starlink, Eutelsat OneWeb and Jio Satellite Communications already have key approvals or licences in place, but spectrum assignment and security requirements remain important conditions for commercial operations. Amazon Leo is still awaiting its GMPCS licence, according to current reports.
For these companies, the spectrum pricing decision removes a major uncertainty surrounding the cost of operating satellite broadband services in India.
However, the DCC approval does not mean that Starlink, OneWeb or Jio can immediately begin commercial satellite internet operations. The proposal still requires further government approval, while security demonstrations and other regulatory requirements also have to be completed.
Rural and Remote Areas Get Lower Spectrum Charge
The 4% AGR rate for designated rural and remote areas is intended to encourage satellite operators to focus on locations where traditional broadband infrastructure is difficult to deploy.
Government-notified hard-to-connect areas are expected to include locations such as border regions, hilly areas and islands, where satellite connectivity can offer an advantage over conventional terrestrial networks.
This could become particularly important for India’s satellite broadband market because satellite networks can cover large geographic areas without requiring the same fibre or tower infrastructure needed for terrestrial connectivity.
What Happens Next?
The next major milestone is Cabinet approval. Once the final framework receives the required approvals, the government can move towards assigning spectrum to eligible satellite communication operators.
Security clearance will remain another critical step before commercial launches. Starlink, OneWeb and Jio Satellite Communications will therefore need to complete the applicable security and regulatory requirements before beginning commercial services.
The DCC’s decision nevertheless represents a significant development for India’s satellite communications market. With the spectrum charge and assignment period now substantially clearer, the focus is shifting from policy negotiations to final approvals, security compliance and commercial deployment.
For Indian consumers, the outcome could eventually mean more broadband competition, particularly in remote and underserved locations where fibre and mobile networks remain difficult to deploy.
