TRAI proposes rulebook for satellite-to-phone service—with one big catch

Partnerships only—no direct sales to consumers

India’s telecom regulator wants phones to connect directly to satellites. Its proposal, released this week, creates a Satellite Communication Network (SCN) Provider Authorisation. Companies with that license could build and run satellite networks, then sell capacity to telecom operators—but not to consumers.

TRAI is not opening the door immediately. Before any commercial service can start, the Indian government must formally approve the recommendations. That holds true even for operators already testing satellite-based solutions in the country.

Fees and spectrum: how costs stack up

Satellite providers would pay an 8% cut of their adjusted gross revenue as an authorisation fee. TRAI set no minimum fee, aiming to lower the barrier for new players.

Spectrum is the other cost. If the government assigns satellite bands, providers face an annual charge of ₹3,500 per MHz. Licenses last up to five years and can be extended another two.

Two technical paths are on the table. One uses spectrum reserved for mobile-satellite services; TRAI wants phone makers to add support for those bands. The other path lets telecom operators repurpose their existing mobile spectrum for satellite links—provided they hold the required frequency channels nationwide. Using the operator’s own spectrum adds no extra charge.

A race to rural India—and what TRAI left out

Eutelsat OneWeb, owned partly by Bharti, has already won Indian approval. Starlink and Reliance Jio are next in line, each targeting rural users who today lack any mobile coverage. TRAI’s plan could let all three leverage existing telecom partnerships instead of building end-to-end infrastructure.

What the regulator did not do is just as telling. It rejected an earlier plan to mandate hardware-based security layers, sidestepping a potential hurdle for device makers. The new proposal stays focused on licensing and partnerships, giving operators more flexibility.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

TRAI’s proposal shifts the satellite opportunity from standalone providers to telecom alliances. If approved, every new smartphone sold in India could one day work anywhere—without waiting for cell towers—but companies will first need to clear government reviews and budget for spectrum costs.

Key takeaways

• Satellite providers can only team up with licensed telecom operators, not sell directly to users.
• Government approval is still needed before any commercial service launches.
• An 8% revenue share replaces upfront fees, potentially helping smaller players.
• Annual spectrum costs of ₹3,500 per MHz may squeeze margins in low-revenue rural markets.

Related on Lazyfounder

• Starlink
• Eutelsat OneWeb
• India considers hardware security layer for satellite internet oversight