Satellite broadband can bridge India's last-mile digital divide. Discuss the regulatory, security and competition challenges that are delaying its rollout.
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Low-Earth-orbit (LEO) satellite broadband sends internet straight from satellites to user terminals. It does not need fibre or towers. Starlink, OneWeb and Jio Satellite are already licensed, yet none has launched commercially [1]. The obstacle is now the approval process, not the technology.
Satcom as a last-mile solution
- It reaches hilly, forest, island and border areas where laying BharatNet fibre does not pay for itself.
- It keeps working when ground networks fail, so it gives disaster-resilient connectivity for relief work [1].
Regulatory challenges
- Approvals come one after another: a DoT Unified Licence with GMPCS authorisation (Starlink, June 2025, subject to security conditions) [2], then IN-SPACe clearance, then FDI approval, then spectrum assignment. None of these steps has a deadline.
- A law passed is not yet a law in force: the Telecommunications Act, 2023 allows administrative allocation of satellite spectrum [3]. But its authorisation and assignment provisions have been brought into force only in stages [4].
- Pricing is still unsettled: TRAI recommended 4% of AGR (adjusted gross revenue) [5]. The DoT's higher charge still awaits Cabinet approval. Without a final price, operators cannot fix tariffs or plan the rollout of user terminals.
Security challenges
- Each licensee must prove it meets security conditions (lawful interception, data localisation, gateways on Indian soil) before it can seek spectrum [2]. The government says this assessment is still going on for all three licensees [1].
- FDI in satellite operation above 74% needs government approval [6]. That brings foreign-owned constellations under strategic screening.
Competition challenges
- Incumbent telcos paid at auction for their mobile spectrum. They argue that cheap administrative spectrum tilts the level playing field towards satcom in cities.
- Musk has accused the government of shielding Jio's dominance. The government rejects this and points out that all three providers, including Jio Satellite, are at the same regulatory stage [1].
- Any claim of abuse of dominance belongs before the CCI under Section 4 of the Competition Act, 2002, not in public allegations.
Satcom's promise is real, but approvals, security screening and contested pricing have delayed it. The way forward is to bring the spectrum provisions into force, finalise a charge that differs for cities and villages, and run security reviews on published deadlines. Clear and equal rules would advance Digital India and SDG 9.c (universal, affordable internet access) without weakening sovereignty.
Sources
- 1Why is Musk taking on Mukesh Ambani over Starlink in India? — The Hindu, Oct 2026satcom's disaster role; all three licensees at the same regulatory stage; security assessment under way; Jio dominance allegation
- 2Lok Sabha Unstarred Question No. 690 (Dec 2025), DoT replyStarlink's Unified Licence with GMPCS authorisation, June 2025, subject to security conditions
- 3The Telecommunications Act, 2023 — Department of Telecommunicationsstatutory basis for administrative spectrum assignment
- 4DoT notification on enforcement of sections of the Telecommunications Act, 2023provisions brought into force in stages
- 5TRAI Recommendations on Terms and Conditions for Assignment of Spectrum for Certain Satellite-Based Commercial Communication Services (9 May 2025)4% of AGR spectrum charge
- 6Cabinet approves amendment in FDI policy on Space Sector — PIB, Feb 202474% automatic-route cap for satellite operation, government route beyond it