Archive · 17 Nov 2025
India Considers Spectrum Fee Discount for Satellite Internet Providers Serving Remote Areas
Imagine internet that comes from space, like from satellites.
In India, companies providing this service might get a small break on the fees they pay for using the airwaves if they help people in difficult places like mountains or islands get online.
The government is thinking about this idea.
Some phone companies worry that this new space internet will take away their customers, especially in cities.
The space internet companies say they need to reach rural areas too and that their business is different from phone companies.
The government is trying to figure out the best way to let these companies offer internet across the country, balancing the needs of different areas and companies.
India's Department of Telecommunications (DoT) is considering a 1% discount on the 5% annual spectrum usage charge for satellite internet providers.
This discount is contingent on providers serving a portion of their users from hard-to-connect areas like borders, hills, and islands.
The DoT's approach favors incentives for remote coverage over the Telecom Regulatory Authority of India's (Trai) recommended disincentive for urban users.
Traditional telecom operators have voiced concerns about competition and market share erosion from satellite internet services.
Satellite communication operators will also pay an 8% annual licence fee based on AGR, with eased rollout obligations being considered.
- Who
- Satellite internet service providers (e.g., Starlink, OneWeb, Jio Satellite, Amazon's Kuiper) and the Department of Telecommunications (DoT) in India.
- What
- Consideration of a 1% discount on the 5% annual spectrum usage charge for satellite internet providers who serve hard-to-connect areas.
- When
- The DoT is currently considering these changes and has sent back references to the regulator, Trai.
- Where
- India.
- Why
- To encourage satellite internet providers to extend services to remote and hard-to-connect regions, and to simplify implementation compared to urban disincentive models.
Telecom Operators
Satellite Internet Service Providers
Market Competition and User Base
Telecom Operators
Express concern that satellite internet services will compete with their existing market share, particularly by targeting elite urban users.
Satellite Internet Service Providers
Argue that their revenue models are significantly lower than terrestrial providers and that rural users are essential for their operational capacity, as stated by Starlink. Broadband India Forum notes satcom market revenue is ₹540-600 crore versus ₹336,000 crore for terrestrial.
Spectrum Pricing and Regulation
Telecom Operators
Consider the pricing recommended by the telecom regulator for satellite spectrum to be unjustifiably low, non-transparent, and creating an uneven playing field.
Satellite Internet Service Providers
Advocate for lower charges, citing lower revenue generation potential compared to terrestrial services and seeking incentives for rural coverage.
- Proposed Discount
- 1% on the 5% annual spectrum usage charge
- Eligibility for Discount
- Serving a certain percentage (e.g., 5%) of users from hard-to-connect areas (borders, hills, islands, government-notified regions)
- Annual Licence Fee
- 8% of Adjusted Gross Revenue (AGR)
- DoT's Stance on Trai's Recommendation
- DoT prefers an incentive-based model for remote areas over Trai's disincentive-led model for urban areas.
- Rollout Obligation Extension
- DoT suggested an additional 30-day period beyond Trai's recommended 12 months.
- Discontinuation Notice
- Companies must inform 60 days prior to service discontinuation (modified from Trai's 30 days).