India to test satellite broadband with 5-year spectrum plan

March 14, 2025 Hot from the Oven Valli Sarvani

India is introducing a five-year trial period for satellite broadband spectrum allocation to evaluate market response before making long-term decisions.

This approach, led by the Telecom Regulatory Authority of India (TRAI), is different from Elon Musk’s Starlink, which aims for a 20-year license to ensure stable pricing and secure long-term investments.

The trial period allows flexibility in assessing the market before committing to a permanent plan.

TRAI is formulating key recommendations for spectrum allocation and pricing, opting for a five-year cap rather than a two-decade commitment.

Reliance Jio and Bharti Airtel, two of India’s biggest telecom players, have supported a shorter timeframe, with Reliance suggesting a three-year reassessment plan.

Despite licensing concerns, Starlink has secured major partnerships. Musk’s firm has teamed up with both Reliance Jio and Bharti Airtel to distribute its satellite broadband services.

This agreement provides Starlink access to a vast retail network, increasing its presence in India’s growing connectivity market.

A senior government official emphasized that a five-year licensing period allows regulators to monitor market stability before committing to a longer duration.

This approach ensures flexibility and enables the government to adjust pricing strategies as the sector evolves.

The government aims to finalize its recommendations within a month before forwarding them to the telecom ministry for further action.

Mukesh Ambani’s Reliance Jio has expressed concerns over Starlink’s entry, fearing that it could divert broadband users and impact voice and data revenues.

Jio previously spent ₹1.9 lakh crore on spectrum auctions, while satellite spectrum pricing is expected to be significantly lower.

Industry experts predict India’s satellite communication sector will grow 10 times, reaching $25 billion by 2028, according to KPMG.

With major players vying for market share, the government’s five-year plan will play a key role in shaping India’s future connectivity. This period will be critical in determining how the sector develops and competes.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on February 13, 2017