TRAI proposes new satellite network authorisation and spectrum framework

MUMBAI: The race to connect India from space is getting a new set of ground rules. The Telecom Regulatory Authority of India (TRAI) has recommended a separate authorisation framework for satellite communication network providers, proposing a model that could allow companies to build and operate satellite infrastructure while telecom service providers use it to deliver services to customers.

Released on 5 November 2026, the recommendations cover the authorisation of Satellite Communication Network (SCN) providers, assignment of satellite spectrum and the financial conditions governing the proposed framework. The recommendations are aimed at creating a competitive satellite communication ecosystem and enabling more efficient use of network infrastructure and spectrum.

The proposal follows a request from the Department of Telecommunications (DoT), which had written to TRAI on 3 July 2025, seeking terms and conditions for a new Satellite Communication Network authorisation under Section 3(1)(b) of the Telecommunications Act, 2023. The request included provisions for assigning spectrum for both feeder links, which connect satellites to gateways, and user links, which connect satellites with end-user terminals.

TRAI subsequently issued a consultation paper on 8 April 2026. It received comments from 31 stakeholders and counter-comments from 12 stakeholders, followed by an open house discussion held virtually on 2 July 2026. The regulator said it had considered the submissions and conducted further analysis before finalising its recommendations.

At the centre of the proposal is a new category called Satellite Communication Network Provider Authorisation, to be introduced under Section 3(1)(b) of the Telecommunications Act, 2023.

Entities holding this authorisation would be permitted to provide Satellite Communication Network as a Service (SCNaaS) to eligible service providers. However, they would not be allowed to offer telecommunication services directly to end users under this authorisation.

The distinction separates the business of operating satellite network infrastructure from the business of providing telecom services to customers. In effect, an authorised SCN provider could make its network available to eligible telecom operators and other authorised entities, which could then use that infrastructure to deliver satellite-based connectivity.

The proposed authorisation would cover the entire country and have a maximum validity of 20 years, with provision for renewal for a further period of up to 20 years.

TRAI has also proposed that existing licensees and authorised entities providing satellite-based communication or telecom services through satellite networks should be eligible to obtain SCNaaS from authorised network providers.

The regulator has recommended that SCNaaS should not be restricted only to entities holding the new SCN authorisation. Other eligible entities should also be allowed to provide the service, provided they meet the prescribed eligibility, technical, operational, rollout and security conditions.

These include entities holding unified service, access service, internet service and long-distance service authorisations under the Telecommunications (Authorisation for Principal Telecom Services) Rules, 2026. The proposal also covers holders of access service, internet service, national long-distance service, commercial VSAT CUG service and GMPCS service authorisations under the Unified Licence, as well as entities operating satellite-based services using gateways installed in India under the sui-generis category.

The recommendations set out how satellite spectrum should be made available to authorised SCN providers. These entities would be permitted to seek Fixed Satellite Service (FSS) spectrum for feeder links and FSS and/or Mobile Satellite Service (MSS) spectrum for user links from the Central Government.

For feeder links, TRAI has recommended administrative assignment of FSS spectrum. For user links, an entity seeking administrative assignment of FSS or MSS spectrum would have to demonstrate that the intended service, to be provided by its partner service provider, falls within the First Schedule of the Telecommunications Act, 2023.

The proposed frequency bands are aligned with the National Frequency Allocation Plan (NFAP) 2025.

For FSS services using geostationary (GSO) satellites, the recommended user-link bands are C, Ku, Ka and Q/V, while feeder links would use the Q/V band. For non-geostationary (NGSO) FSS satellites, the user-link bands would be Ku, Ka and Q/V, with Q/V for feeder links.

For MSS using GSO satellites, the proposed user-link bands are L and S, while feeder links would use C, Ku, Ka and Q/V bands. For NGSO-based MSS, the feeder-link bands would also include C, Ku, Ka and Q/V.

TRAI has recommended that FSS and MSS spectrum be assigned to authorised SCN providers for up to five years. The government may extend the assignment by a further period of up to two years, taking market conditions into account.

The terms and conditions of spectrum assignment, including pricing, should remain valid for five years from the date the Central Government notifies the policy regime, with the possibility of a further extension of up to two years. Any revisions notified after the initial five-year period would apply to all authorised SCN providers, including those already operating under the framework.

The recommendations also provide for partnerships between SCN providers and eligible service-authorised entities. Under such arrangements, a network provider could use the partner’s FSS spectrum for feeder links and its FSS or MSS spectrum for user links to provide SCNaaS. However, the right to use the spectrum would remain with the partnering entity.

A significant part of the recommendations concerns direct-to-device (D2D) connectivity, which could allow compatible mobile devices to connect through satellites rather than relying exclusively on terrestrial mobile networks.

TRAI has recommended permitting MSS-based D2D services in India using the L-band and S-band spectrum allocated for mobile satellite services. Access service providers would be allowed to obtain SCNaaS from authorised SCN providers to offer these services.

The regulator has also recommended that, after acceptance of the proposals, the Central Government encourage smartphone manufacturers to include the necessary modules to support the applicable MSS frequency bands in future handsets sold in India.

For D2D services using International Mobile Telecommunications (IMT) spectrum, TRAI has proposed allowing satellite-based operations on a non-interference and non-protection basis under Article 4.4 of the ITU Radio Regulations, without waiting for the outcome of the World Radiocommunication Conference 2027 (WRC-27).

Any government decision on IMT-based D2D services following WRC-2027 would subsequently apply to these services.

Under the proposed arrangement, access service providers holding IMT spectrum could offer satellite-based D2D services by obtaining SCNaaS from an authorised SCN provider. Conversely, SCN providers could offer SCNaaS to access service providers holding the relevant IMT spectrum.

There is, however, an important condition. One or more access service providers would have to collectively hold the assignment of the relevant IMT frequency channel across all 22 licensed service areas of the country and agree to allow its use by the SCN provider for providing SCNaaS to those entities.

TRAI has identified six Frequency Division Duplexing (FDD) IMT bands for such services: 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1,800 MHz and 2,100 MHz.

It has also recommended amending the NFAP frequency allocation table to include MSS as a secondary service in the identified IMT bands. An India-specific footnote would clarify that such secondary MSS operations would be limited to IMT-based D2D services and would operate on a non-interference and non-protection basis for both domestic and cross-border operations.

To protect existing services from harmful interference, TRAI has recommended specifying limits on the electric field strength of the aggregate signal from all satellite beams.

The financial framework is another key element of the recommendations. TRAI said it had followed the principle of regulatory parity between vertically integrated service models and an unbundled shared-network model for satellite-based services.

Under the proposal, the authorisation fee for SCN providers would be 8 per cent of Adjusted Gross Revenue (AGR), with no minimum authorisation fee.

TRAI has recommended that Gross Revenue (GR) include all revenue earned by an SCN provider from offering SCNaaS to eligible service-authorised entities for providing satellite-based services to end users, along with other revenue from network-related activities. Related expenditure would not be deducted while calculating GR.

For determining Applicable Gross Revenue (ApGR), non-telecom revenue would be excluded from GR, in line with the Telecommunications (Authorisation for Provision of Principal Telecommunication Services) Rules, 2026.

The regulator has also proposed allowing SCNaaS charges paid by eligible service-authorised entities, including eligible virtual network operators, to be deducted from their ApGR, provided the payments are properly documented and verified.

For calculating AGR, payments made to another authorised SCN provider for the use of satellite earth station gateways would be allowed as deductions, along with goods and services tax paid to the government, where applicable.

Spectrum charges for authorised SCN providers would be based on AGR. For NGSO-based FSS, TRAI has recommended a differential charging framework for urban and rural areas, which could include an additional per-subscriber charge for urban areas. The charging framework should be the same as that applicable to satellite-based commercial communication services, as decided by DoT on the basis of recommendations dated 9 May 2025.

Where the Central Government assigns FSS or MSS spectrum to an SCN provider, the proposed annual minimum spectrum charge would be Rs 3,500 per MHz.

For MSS spectrum in the L and S bands used for D2D services, the charging framework should be the same as that applicable when the spectrum is used for conventional MSS services on specialised devices.

TRAI has further recommended that no additional spectrum charges be levied on a partner access service provider for the use of its already assigned IMT spectrum in user links for satellite-based D2D services. The existing spectrum charging framework for that IMT assignment would continue to apply.

For satellite-based services provided by service providers under the existing Unified Licence or the new 2026 authorisation rules, spectrum charges would be levied only on the portion of AGR derived from FSS and MSS services, including MSS services to normal and specialised phones. For SCNaaS, charges would apply only to the portion of AGR generated from providing the network service.

The recommendations also specify the proposed financial requirements for entities seeking SCN provider authorisation.

TRAI has recommended an entry fee of Rs 37.5 lakh, an initial bank guarantee of Rs 45 lakh, minimum equity of Rs 60 lakh and minimum net worth of Rs 60 lakh. The application processing fee would be Rs 10,000.

These conditions, along with the proposed authorisation and spectrum charges, are intended to establish a separate framework for companies providing satellite network infrastructure to telecom service providers.

The recommendations now set out TRAI’s proposed framework, covering authorisation, spectrum access, D2D connectivity and financial obligations. They are intended to give service providers greater flexibility in accessing satellite network resources while supporting the development of satellite-based connectivity across India.