DCC approves satcom spectrum framework, Starlink and OneWeb await security clearance

The DCC has approved a 5% AGR spectrum charge for satellite services, bringing Starlink, OneWeb and Amazon Leo closer to commercial launches in India, though security and other regulatory hurdles remain. The Digital Communications Commission (DCC), the apex decision-making body of the Department of Telecommunications (DoT), has approved most of the recommendations made by sector regulator Trai on spectrum allocation for satellite communication services, according to reports. The DCC has approved a spectrum usage charge of 5% of adjusted gross revenue (AGR) for satellite communication services, with a lower effective charge for operators serving designated rural and remote areas, according to reports from Money control. The decision clears the way for the government to assign spectrum to satellite communication operators such as Eutelsat OneWeb, Starlink and Amazon Leo for the launch of commercial services in India, subject to them meeting security and other regulatory requirements. Advertisement eports suggest that the government has, in principle, agreed to assign spectrum for five years, with an option for a two-year extension. The spectrum usage charge will be 5% of AGR, with a lower effective charge of 4% for operators serving designated rural and remote areas. The DCC's decision comes eight months after Trai submitted its response in December to queries raised by the DoT on satellite spectrum. Trai had previously issued its original recommendations in May last year. More from Tech More from Tech TRAI had recommended a 4% of AGR spectrum usage charge, along with an additional Rs 500 per urban subscriber per year for non-geostationary orbit (NGSO)-based satellite services. Rural and remote subscribers would have been exempt from the additional levy. However, the DoT rejected the proposed per-subscriber charge, citing difficulties in distinguishing between rural and urban users. It also turned down Trai's proposal to subsidise fixed satellite terminals for select rural and remote subscribers through the Digital Bharat Nidhi (DBN), saying the existing framework does not provide for such subsidies. With the DCC's decision provides greater clarity on spectrum pricing and allocation, the launch of commercial satellite broadband services in India is now closer. However, several regulatory hurdles remain. Local Global Mobile Personal Communications by Satellite (GMPCS) license holders still require security clearances, including demonstrations and the resolution of concerns raised by the Ministry of Home Affairs (MHA). Advertisement Additional hurdle for Starlink Starlink faces an additional hurdle, with its 100% foreign direct investment structure emerging as a key unresolved issue. The company has also reapplied to India's space regulator, IN-SPACe, for approval of its next-generation satellite constellation. It is seeking authorisation for nearly 30,000 low-Earth-orbit satellites under its Gen 2 constellation, which includes capabilities such as direct-to-device connectivity. Geostationary orbit (GSO)-based fixed satellite networks operated by companies such as Hughes and Nelco are already permitted to offer services in India, with these operators paying spectrum charges of around 3-4% of AGR. The government is expected to finalise the pricing for non-GSO operators, including Elon Musk's Starlink, Eutelsat OneWeb, Jio Satellite and Amazon Leo. The finalisation of spectrum pricing, along with the completion of security and other regulatory requirements, will be critical for these companies to begin commercial satellite broadband services in India.