TRAI Proposes Domestic Control and Direct-to-Device Rules for Satcom Providers

The Telecom Regulatory Authority of India released comprehensive regulatory recommendations establishing a dedicated licensing framework for satellite communication network providers. Under the proposed framework, authorised entities will supply satellite bandwidth capacity to licensed telecommunications carriers rather than servicing retail subscribers directly. Authorised network providers will be permitted to offer Satellite Communication Network as a Service across India for an operational term of up to 20 years. The regulatory authority recommended an initial entry fee of 37.5 lakh rupees alongside an ongoing license fee of 8 percent of adjusted gross revenue. The recommendations mandate stringent sovereign security protections governing orbital network operations, terrestrial earth stations, and digital traffic routing.

Domestic Network Control and Gateway Security Mandates

TRAI specified that all operation, maintenance, and network control facilities for satellite providers must be physically located within India. Satellite communication network providers must guarantee that their infrastructure delivers only telecom services for which partnering operators maintain valid licenses. Operators must prevent their space and ground networks from being leveraged for unauthorized operations such as electronic surveillance or warfare. Providers are required to detect and report to the central government any attempts by unregistered user terminals to access their networks. Companies must furnish detailed geographical and engineering plans for each proposed satellite earth station gateway to the government prior to deployment. TRAI proposed financial conditions for satellite network authorisations including an initial guarantee of ₹45 lakh, minimum equity of ₹60 lakh, minimum net worth of ₹60 lakh, and an application processing fee of ₹10,000, according to TelecomLead. TRAI's proposed satellite network provider authorization is a non-binding recommendation that will take effect only if accepted by the Department of Telecommunications (DoT), according to GKToday. Telecom operators could deduct payments to SCN providers when calculating their own fee liability, according to GKToday.

Traffic Monitoring and Cross-Border Restrictions

The framework also mandates a real-time data monitoring mechanism to ensure strict compliance with legal rules governing domestic telecommunications traffic. The regulator prohibited satellite providers from mirroring domestic internet traffic to overseas systems or routing Indian user communications through foreign gateways. Additionally, user terminals are barred from communicating directly with each other via satellites without transiting through an Indian earth station gateway. Satellite communication network operators must also perform interference-monitoring tests whenever instructed by central authorities and implement required mitigation steps. These requirements place direct operational accountability on satellite operators to maintain authorized gateway routing architectures.

Direct-to-Device Mobile Connectivity and Spectrum Framework

Beyond wholesale network capacity, the regulatory framework introduces guidelines enabling direct-to-device satellite connectivity on consumer mobile phones. The regulator recommended encouraging smartphone manufacturers to integrate hardware modules supporting Mobile Satellite Service frequencies into upcoming handsets. Direct smartphone satellite services could operate over dedicated L-band and S-band frequencies without relying on traditional ground cellular towers. Alternatively, satellite providers could deliver direct-to-device connectivity using terrestrial mobile spectrum including the 600, 700, 800, 900, 1800 and 2100 MHz bands. To utilize terrestrial spectrum for satellite services, partnering telecom operators must collectively possess allocated spectrum across all 22 licensed service areas in India. These proposals aim to bridge connectivity gaps in isolated rural locations while preserving regulatory oversight over India's digital communications space. Standardised 5G New Radio support for non-terrestrial networks was introduced in 3GPP Release 17, integrating satellite links into mobile-network standards, according to GKToday. Statutory legislation enacted in 2023 permits administrative spectrum allocation for satellite infrastructure, according to GKToday.