India's Satellite Spectrum Approval Moves Forward, Starlink and OneWeb Await Final Nod

India's Digital Communications Commission (DCC) has endorsed most recommendations from the Telecom Regulatory Authority of India (TRAI) concerning the allocation of satellite spectrum. This decision, made on September 3, advances the potential launch of commercial satellite broadband services by operators such as Starlink, Eutelsat OneWeb, and Jio Satellite Communications in India.

Following the DCC's approval, the Department of Telecommunications (DoT) will now seek the Union Cabinet's endorsement for the proposed framework on spectrum pricing and allocation. However, commercial operations remain contingent on the formal assignment of spectrum and the completion of necessary security clearances.

The DCC has backed a five-year spectrum assignment period, with an option for a two-year extension. While TRAI had suggested a 4% levy on adjusted gross revenue (AGR) as an annual spectrum fee for satellite operators, the DoT has favored a 5% charge. Reports indicate that services in rural and remote areas might be subject to a lower 4% fee.

This approval addresses a significant regulatory gap that had previously prevented satellite broadband providers from commencing operations in India. Companies like Starlink and OneWeb utilize non-geostationary orbit (NGSO) systems to offer low-latency broadband, but a clear regulatory path for spectrum pricing and assignment was missing. While crucial licenses and space-sector approvals are already in place, final government cabinet approval and security clearances are still pending before commercial services can commence.