India’s biggest telecom giants, Reliance Jio and Bharti Airtel, have reportedly raised serious objections to the Department of Telecommunications' (DoT) proposal to keep satellite communication (satcom) spectrum usage fees extremely low—a move that could directly benefit Elon Musk’s Starlink and other foreign players entering the Indian market.
The Dispute
The dispute centers on the proposed administrative allocation of spectrum for satellite broadband services. According to industry sources, both Reliance Jio and Bharti Airtel (through their respective satellite units) have argued that the current proposal undermines fair competition by not charging adequate spectrum usage fees for satellite-based services, potentially creating an uneven playing field in a market poised for massive growth.
The issue was flagged during a high-level consultation with the Telecom Regulatory Authority of India (TRAI) and DoT, where both Indian telecom leaders warned that foreign players like Starlink could leverage the low spectrum cost to dominate the emerging satcom broadband sector—without having to make proportional investments or contribute equitably to national revenue.
Starlink in Focus
Starlink, backed by Elon Musk’s SpaceX, has been actively preparing to enter the Indian broadband market after receiving conditional approval to offer services. It plans to operate through a wholly-owned Indian subsidiary and has already deployed thousands of satellites in low-Earth orbit (LEO), promising high-speed internet access even in remote and underserved areas of India.
However, Indian telcos argue that unless the government imposes market-linked spectrum fees, traditional players—who paid heavily for terrestrial spectrum over the years—will be disadvantaged. Jio and Airtel also fear this could set a precedent for underpricing spectrum, which has historically been a key revenue generator for the government.
Policy at a Crossroads
India’s National Digital Communications Policy aims to increase digital connectivity, and satellite internet is viewed as critical to bridging the urban-rural divide. Yet the regulatory framework is still evolving. The DoT’s current stance of allocating spectrum through an administrative (non-auction) route for satcom, with nominal fees, stems from global best practices where auctions are typically avoided to ensure universal access.
But Indian telecom players want a hybrid or tiered pricing model—where fees are at least partially aligned with market realities and spectrum demand.
What Lies Ahead
With stakeholders at odds, the final decision rests with the Indian government and TRAI. A middle-ground solution may involve setting a nominal base fee while allowing room for escalation as usage increases.
If the current policy is adopted without revisions, Starlink and other LEO satellite operators like Amazon’s Project Kuiper could get a significant early-mover advantage in India, particularly in rural broadband expansion. Meanwhile, Indian telecom firms may be forced to rethink their satellite strategies or push for more aggressive reforms.
Key Points:
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Reliance Jio and Airtel oppose India’s proposed low satcom spectrum fee.
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They argue it gives foreign players like Starlink an unfair advantage.
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Government favors low-cost administrative allocation to boost rural connectivity.
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Final regulatory guidelines are still under discussion.