The Telecom Regulatory Authority of India (TRAI) has proposed a significant regulatory change for the country’s rapidly expanding satellite communication sector. In its latest consultation paper, TRAI recommends that satellite communication operators providing services in urban areas be required to pay an additional annual fee of ₹500 per active subscriber. This move is expected to have far-reaching implications for global and domestic satellite internet providers, including Starlink, OneWeb, and Bharti Airtel’s satellite ventures.
The satellite communication market in India is witnessing unprecedented growth, especially with the entry of global players offering affordable, high-speed internet to both rural and urban consumers. While satellite internet is vital for bridging the digital divide in remote areas, TRAI notes that urban markets are becoming increasingly lucrative for these operators.
According to TRAI, the additional ₹500 annual fee per urban subscriber aims to:
Level the playing field between traditional terrestrial ISPs and satellite operators, who often have different regulatory and infrastructure costs.
Generate additional revenue for the government, which can be used to fund digital infrastructure and rural connectivity initiatives.
Ensure fair competition and prevent market distortion as satellite services become more mainstream in cities.
Urban subscribers, especially those considering satellite internet for its speed and reliability, may see a slight increase in their annual bills if operators choose to pass on the fee. For example, a user paying ₹850 per month (₹10,200 per year) could see their total annual cost rise by nearly 5% due to the new charge.
However, TRAI argues that the fee is modest compared to the value of uninterrupted, high-speed internet access that satellite services provide, particularly in areas where terrestrial networks are congested or unreliable.
Industry stakeholders have responded with mixed reactions. While some welcome the clarity and regulatory certainty, others warn that additional fees could stifle innovation and slow the adoption of satellite broadband in urban India.
A spokesperson for a leading satellite operator said, “We support regulatory transparency, but urge TRAI to consider the nascent stage of the satellite internet market and the need for affordable access across all segments.”
