TRAI proposes a separate licence for satellite network providers and backs direct-to-device links on mobile spectrum

India's telecom regulator has set out how it thinks satellite networks should be licensed in the country. Its answer is a new category of licence for companies that build and run satellite capacity, plus a route for ordinary phones to connect straight to satellites.

On November 5, 2026, the Telecom Regulatory Authority of India (TRAI) released recommendations on an authorisation and spectrum framework for satellite communication network providers. These are recommendations only. The Department of Telecommunications (DoT) has to accept and notify them before any of it takes effect. Even so, the document is the clearest sign yet of how India may regulate an industry that is moving quickly from niche broadband to mass-market mobile coverage.

What TRAI is proposing

The core proposal is a separate Satellite Communication Network (SCN) Provider Authorisation under Section 3(1)(b) of the Telecommunications Act, 2023.

The new category is meant for companies that own or operate satellite capacity and want to sell it wholesale. According to the recommendations, an SCN provider could offer satellite network capacity "as a service" to eligible telecom operators and service providers. It would not be allowed to sell telecom services directly to end users. In practice, a satellite operator would be the network layer and Indian telcos would sell the retail service.

Reported details of the proposed framework include:

• Duration: The authorisation would cover the whole country for up to 20 years, renewable for another 20.
• Fee: An authorisation fee of 8% of adjusted gross revenue (AGR), with no minimum fee.
• Spectrum charges: Where the government assigns Fixed Satellite Service (FSS) or Mobile Satellite Service (MSS) spectrum to an SCN provider, TRAI proposes a minimum annual spectrum charge of ₹3,500 per MHz.
• Spectrum sources: Providers could ask the Centre for FSS and MSS spectrum, or use spectrum already assigned to the telecom operators they partner with.

Direct-to-device: satellites as cell towers

The part of the recommendations most likely to reach ordinary users concerns direct-to-device (D2D) connectivity. In D2D, a compatible handset connects directly to a satellite overhead, with no dish or special terminal, which fills gaps where there is no terrestrial mobile coverage.

TRAI supports D2D using both MSS spectrum and the IMT spectrum that mobile networks already use. It has named six FDD mobile bands for this: 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz and 2100 MHz. D2D on IMT spectrum would be allowed on a non-interference, non-protection basis, meaning satellite signals must not disrupt terrestrial networks and get no protection from them. TRAI also recommended allowing this without waiting for the outcome of the World Radiocommunication Conference in 2027 (WRC-27), where satellite use of mobile bands is on the agenda.

Telcos that use their existing IMT spectrum for D2D would not pay an extra spectrum charge, according to reports on the recommendations.

Security conditions

Satellite networks cross borders by design, so security has run through India's satcom debate for years, and the recommendations reflect that. Security and gateway conditions would depend on the final rules and the spectrum and authorisation terms adopted by DoT.

Why this matters

India's satellite communications market is crowded and political. Global low-earth-orbit constellations are seeking clearances to serve Indian users, Indian telcos are building satellite partnerships, and a growing domestic space industry wants to build and launch its own communication satellites.

A separate wholesale licence would draw a line through that market. Satellite operators would be infrastructure providers selling capacity, and licensed Indian telecom operators would keep the customer relationship, including know-your-customer checks, lawful interception and consumer protection. For domestic satellite builders and ground-segment companies, a defined SCN category could make it easier to raise money and design business models around Indian demand.

D2D addresses a real gap in India. Large stretches of the Himalayas, desert regions, island territories and coastal waters remain hard to cover with towers. Satellite-to-phone links could provide basic messaging and emergency connectivity there, and add resilience during disasters when terrestrial networks fail.

The open questions are commercial and procedural. DoT must decide whether to accept the recommendations in full, modify them, or send them back. Telecom operators and satellite companies are likely to contest the 8% AGR fee and the spectrum charges. Interference rules for D2D in crowded mobile bands will need technical work before services can launch at scale.

The bigger picture

The recommendations form part of a wider rebuild of India's telecom rules under the Telecommunications Act, 2023, which replaced the colonial-era licensing regime with "authorisations". They also arrive as India tries to build an end-to-end space economy, from rockets and satellites made by private companies to services sold to Indian consumers. A clear, predictable licensing model for satellite networks is one of the pieces that economy has lacked.

How quickly DoT acts will decide whether Indian users see satellite-to-phone services in the next few years or later in the decade.

Sources

• https://www.business-standard.com/industry/news/trai-proposes-new-satcom-provider-category-issues-d2d-connectivity-norms-126110502012_1.html
• https://telecomlead.com/satellite/trai-proposes-20-year-satellite-network-licences-8-revenue-fee-and-direct-to-device-services-in-india-128559
• https://www.storyboard18.com/digital/trai-proposes-new-satellite-communication-framework-for-existing-licenses-ws-l-114149.htm
• https://www.tribuneindia.com/news/business/trai-proposes-separate-authorisation-framework-for-satcom-network-providers-backs-direct-to-device-connectivity
• https://www.communicationstoday.co.in/trai-sets-out-framework-for-satcom-authorisation-spectrum-assignment/
• https://www.medianama.com/2026/11/223-trai-india-network-control-traffic-monitoring-satellite-providers/
• https://indiantelevision.com/regulators/trai-proposes-new-satellite-network-authorisation-and-spectrum-framework/

• https://www.trai.gov.in/recommendations-framework-satellite-communication-network-provider-authorisation-and-assignment