India is a step closer to commercial satellite broadband services. The Digital Communications Commission, or DCC, which is the top decision-making body within the Department of Telecommunications, has approved key TRAI recommendations on satellite spectrum charges and assignment terms.

The development matters because satellite broadband can connect places where fibre cables and mobile towers are difficult or expensive to deploy. Think of remote villages, mountain regions, islands, border areas, ships, disaster-hit zones, and isolated worksites.

However, this is not an immediate nationwide launch announcement. As per reports, Cabinet ratification, security clearances, final spectrum pricing, and other regulatory checks are still needed before companies can begin commercial services.

What the DCC approval covers

The approved framework gives satellite communication companies more clarity on how they may receive spectrum and what charges they could pay.

According to reports, the DCC accepted a 5 percent spectrum usage charge based on adjusted gross revenue, or AGR. Operators serving designated rural and remote areas may receive a lower 4 percent charge. The proposed spectrum assignment period is five years, with an option to extend it by two more years.

This is important because satellite networks require heavy investment in satellites, gateways, user terminals, and ground infrastructure. Clearer rules can help companies decide whether to invest and how to price their services in India.

TRAI had earlier suggested a different structure, including a lower AGR charge and a separate annual levy for urban users of non-geostationary satellite services. Reports indicate that the per-subscriber charge and terminal subsidy proposal were not accepted by DoT.

How satellite broadband can help

Satellite broadband sends internet signals from satellites in space to a dish or terminal on the ground. Unlike fibre broadband, it does not need a cable to be laid all the way to the customer’s location.

This can be useful for a health centre in a remote hill district that needs stable connectivity for online consultations. It can also help schools access digital learning tools, enable connectivity at construction or mining sites, and provide backup communication during floods or earthquakes.

Satellite broadband may also support businesses such as shipping, aviation, logistics, energy, and disaster-response services. According to Business Standard, industry experts expect enterprise use cases to form a major part of the early market.

Still, satellite internet is unlikely to replace fibre in cities. Fibre remains better suited for densely populated areas where cable networks are available and high-capacity connections are needed at lower cost.

Companies working on satellite broadband in India

Several major players are preparing for India’s satellite broadband market.

Eutelsat OneWeb, Starlink, and Jio Satellite Communications already hold Global Mobile Personal Communication by Satellite licences, according to Business Standard. These licences are an important step, but commercial launches still depend on spectrum assignment and security-related approvals.

Starlink, owned by SpaceX, plans to offer low-Earth-orbit satellite internet. It has also signed distribution agreements with Reliance Jio and Bharti Airtel, subject to regulatory approvals.

Eutelsat OneWeb is another major contender, supported by Bharti Enterprises. Jio Satellite Communications is Reliance Jio’s satellite arm and is working with SES in the satellite connectivity space.

Amazon Leo, previously known as Project Kuiper, is also interested in India’s satellite broadband opportunity but is still awaiting key approvals, according to reports.

Key takeaways –

The DCC approval is an important policy step for satellite broadband in India, but it is not the final green signal for services to begin. Companies still need to meet security, spectrum, and other regulatory conditions.

The biggest benefit could be better connectivity in difficult-to-reach areas. If pricing becomes practical and service quality meets expectations, satellite broadband could complement fibre and mobile networks instead of competing with them everywhere.

Facts Input- Business Standard, Moneycontrol, TRAI, AP