Satcom Spectrum Would Be Assigned Without an Auction Under Draft Rules
Draft rules from the Department of Telecommunications would assign satellite spectrum by administrative process, not auction, and would allow consumer service only after security clearance.
The Department of Telecommunications has drafted rules that would change how India assigns radio spectrum to satellite operators. The draft, the Telecommunications (Spectrum Assignment by Administrative Process) Rules, 2026, would replace auctions with an administrative process. Outlook Business gives the notification date as 17 June 2026.
The draft affects three operators that already hold satellite communication licences but cannot yet sell consumer service. They are Starlink, Reliance Jio's satellite arm and Eutelsat OneWeb, which is backed by Bharti Group. The Week reports that consumer services may not begin until the required security clearances are fully obtained.
Spectrum Assigned Without an Auction
Under the draft, satellite spectrum would be assigned through an administrative process rather than an auction. tele.net says the draft codifies how that assignment would work and places its introduction in June 2026. Outlook Business reports that spectrum charges would be determined on the basis of market price.
The Week describes annual fees that are fixed but tied to market prices. It says the reference for those prices is either a reserve price or the most recent auction price.
In a statement that ThePrint dates to 9 October 2026, Union Communications Minister Jyotiraditya Scindia said spectrum would be assigned once the government decides the charge system on a revenue basis. ThePrint also reports that the government has yet to finalise spectrum charges.
tele.net says the consultation window closed on 18 July 2026. Outlook Business reports that the Department of Telecommunications allowed 30 days for comments on the draft.
What the Draft Fees Would Be
Outlook Business reports an annual fee of ₹30,000 to ₹50 lakh, set by service type and charged per terminal, plus a non-refundable application fee of ₹1,000.
tele.net describes revenue-linked charges instead. Commercial GSO VSAT connections would pay 3% of adjusted gross revenue up to 128 kbps, 3.5% up to 512 kbps and 4% up to 2 Mbps. BSNL's satellite phone service would pay 1% under a separate category. The Week gives the VSAT rate as 3 to 4% of adjusted gross revenue and the BSNL rate as 1%.
Indian Infrastructure reports charges that the Telecom Regulatory Authority of India (TRAI) proposed in May 2025: 4% of adjusted gross revenue or ₹3,500 per MHz a year, whichever is higher, plus ₹500 per urban subscriber for non-geostationary orbit services.
Outlook Business describes a fixed per-terminal annual fee, while tele.net and The Week describe revenue-linked charges for commercial services.
Security Clearance Comes Before Consumer Service
tele.net describes the order of steps as security clearance and site clearance for radio equipment first, then a letter of intent, and finally spectrum assignment. Outlook Business reports that where a letter of intent is issued before the clearance for installing radio equipment, spectrum is still assigned only after that clearance is obtained. The Week, by contrast, reports that satellite operators could receive spectrum and even a letter of intent before all security clearances are in place.
Indian Infrastructure reports that the draft requires security clearance for any consumer-facing satellite broadband or satellite phone service. The Week reports that consumer services might not begin until those clearances are fully obtained.
Satellite operators also cannot connect their networks to landlines, mobile networks or the internet without explicit government authorisation, according to Outlook Business and The Week.
ThePrint reports that Minister of State for Communications Chandra Sekhar Pemmasani said the clearances remain pending with the Ministry of Home Affairs and that the matter 'has nothing to do with one company.'
Why the Government Describes the Framework This Way
tele.net reports that the draft aims to give satellite operators a fee structure that is codified and linked to revenue, along with rules that are predictable and enforceable.
The framework is tied to the National Broadband Mission 2.0, which targets reaching about 270,000 villages with broadband by 2030, particularly in hilly, tribal and border regions, according to tele.net.
On the wider approach, ThePrint reports Scindia saying the government is technology-agnostic and that customers can choose their services freely. He also said India does not allow monopoly in any sector.
tele.net and Indian Infrastructure both describe the framework as moving satellite spectrum from auctions to administrative allotment. Indian Infrastructure says the change resolves a prolonged dispute between global satellite operators and terrestrial providers.
As and when the government decides the charge system on a revenue basis, that spectrum will be assigned to them.
Existing Spectrum Holders Face Fresh Applications
The Week reports that existing spectrum assignments held by BSNL and MTNL would not be eligible for routine renewal. Both would need to file fresh applications and pay market-linked prices.
The Week describes this as a shift away from routine renewal.
Where the Three Operators Stand
Scindia's statement names Starlink, Reliance Jio's satellite arm and Bharti-backed Eutelsat OneWeb as the three companies holding satcom licences.
Tribune reports that Starlink was given a licence by the government in early June 2025 to provide GMPCS, VSAT and ISP Category-A services under a unified licence. Tribune reported on 9 July 2025, citing sources, that Starlink had received clearance from the Indian National Space Promotion and Authorisation Centre (IN-SPACe). It calls Starlink the third company to receive approval, after OneWeb and Reliance Jio.
Indian Infrastructure lists Starlink and Jio-SES, which operates as Orbit Connect India, as still navigating security clearances and awaiting final spectrum allocation as of mid-2026. It lists OneWeb's licence as secured. Outlook India reports that OneWeb still awaits government permission to begin operations.
tele.net reports that IN-SPACe cleared Jio's low Earth orbit constellation on 17 July 2026. Indian Infrastructure reports that authorities validated Jio's proposal for about 1,600 such satellites in July 2026.
Speaking at the Bloomberg New Economy Forum 2026, Mittal said OneWeb applied five years ago and is 'significantly ahead in the queue' of Starlink. Outlook India reports that OneWeb has had its ground network ready for three years and its satellites over Indian airspace for five years.
Scindia said each operator can begin operations once the government finalises spectrum charges and it individually fulfils its security conditions.
