TRAI Launches Consultation on Satellite Communication Network Authorisation and Spectrum Framework

Why It Matters

By formalising SCN licensing and spectrum rules, TRAI aims to unlock satellite capacity for telecom operators, accelerating broadband rollout in remote areas and attracting investment in India’s space‑tech ecosystem. The framework could reshape service models and pricing structures across the industry.

Key Takeaways

• TRAI seeks input on SCN eligibility and geographic scope
• New SCNaaS model lets operators lease satellite capacity
• Direct‑to‑Device services could bypass ground infrastructure
• Spectrum pricing may adopt AGR‑based model for viability
• Interconnection framework aims to align satellite and terrestrial networks

Pulse Analysis

India’s satellite communications sector has long operated under fragmented rules, limiting its ability to complement terrestrial networks. TRAI’s latest consultation aligns the sector with the Telecommunications Act, 2023, establishing a clear authorisation pathway for Satellite Communication Networks. By setting eligibility criteria, validity periods, and technical standards, the regulator is creating a predictable environment that encourages both domestic and foreign players to invest in satellite infrastructure, a critical step for a country where over 600 million people remain offline or under‑served.

A standout feature of the paper is the introduction of Satellite Communication Network‑as‑a‑Service (SCNaaS). This model allows licensed telecom operators to access satellite capacity without building their own constellations, reducing capital expenditures and speeding up service deployment in hard‑to‑reach regions. Coupled with the potential rollout of Direct‑to‑Device (D2D) services, which let smartphones connect directly to satellites, the framework could dramatically reshape broadband delivery, offering a viable alternative to costly fiber rollouts in rural and mountainous terrain.

Spectrum management remains the linchpin of the proposal. TRAI is weighing an Adjusted Gross Revenue (AGR)‑based pricing scheme, mirroring approaches used for terrestrial spectrum, to ensure fair cost recovery while keeping services affordable. By addressing sharing arrangements, interference mitigation, and interconnection agreements, the regulator aims to harmonise satellite and terrestrial networks, fostering competition and innovation. If adopted, these policies could position India as a global leader in integrated satellite‑terrestrial connectivity, attracting significant private capital and supporting the nation’s broader digital inclusion goals.