Stalemate in Delhi puts India’s satellite internet rollout on hold

India’s satellite internet rollout is set to overshoot earlier timelines as a maze of unresolved regulatory and security requirements between DoT, TRAI and security agencies persists, while operators grapple with meeting the new satellite‑specific compliance norms.

Spectrum sharing and interference rules
Because satellite spectrum is treated as a shared resource, DoT wants a much tighter framework for spectrum sharing and coordination than TRAI’s relatively flexible recommendations, citing future interference risks once multiple NGSO and GSO systems coexist. Pending decisions include coordination distances between earth stations using the same frequencies, rules for sharing across bands and constellations, and detailed procedures for spectrum assignment and surrender.​

TRAI’s proposal for administrative allocation with a 4% AGR levy is under review, and DoT has already pushed back on related satcom fee constructs in other contexts, indicating it considers some levies “paltry” for driving rural‑connectivity outcomes. This pricing uncertainty, combined with potential future tightening of interference‑mitigation obligations, is delaying commercial contracts, capacity planning and end‑user tariff decisions.​

Mobility, competition and policy alignment
Mobility services (on aircraft, ships, vehicles) face extra scrutiny because of interception, tracking and cross‑border coverage issues, which could subject certain satcom mobility offerings to additional approvals or restrictions beyond basic fixed broadband. At the same time, terrestrial operators are lobbying hard on “level playing field” grounds, arguing that satcoms offering comparable retail services should face similar licence fees and regulatory burdens, feeding into DoT–TRAI disagreements on fees and obligations.​

Finally, some satellite‑specific rules notified under the broader Telecom Act and upcoming authorisation regime are still in flux, including detailed procedures for authorisation vs licensing, cybersecurity obligations and enforcement mechanisms. Until this secondary rule‑making stabilises, most global and domestic satcom players are proceeding with pilots and security demos rather than committing to aggressive commercial timelines, making delays in mass‑market rollout increasingly likely.​

CT Bureau