The Telecom Regulatory Authority of India (TRAI) is expected to restrict satellite internet services to mobile dark zones—regions without terrestrial network coverage. This move comes as Bharti Airtel and Reliance Jio strengthen their partnerships with SpaceX’s Starlink, accelerating TRAI’s recommendations on satellite spectrum pricing, according to Financial Express sources.

Why is TRAI Restricting Satellite Internet?

Telecom giants Jio and Airtel have raised concerns that global satellite providers like Starlink and Amazon Kuiper could potentially capture urban market share without participating in traditional spectrum auctions.

By directing satellite broadband services to unserved rural areas, TRAI aims to:
Address telecom operators' concerns about fair competition.
Ensure satellite internet primarily benefits remote regions where fiber and wireless networks are not feasible.
Maintain regulatory flexibility as satellite communication technology evolves.

Challenges in Satellite Internet Implementation

Limited Device Compatibility: Standard mobile devices cannot directly receive satellite signals yet.
High Costs: Satellite broadband is significantly more expensive than traditional mobile services.
Future Adaptation: As technology improves, TRAI may re-evaluate regulations to expand satellite services.

Currently, four key players are competing in India’s satellite broadband sector:
Eutelsat OneWeb (approved)
Jio-SES (approved)
Starlink (awaiting clearance)
Amazon Kuiper (awaiting clearance)

Government Support for Rural Connectivity

To make satellite broadband viable in rural areas, the government may need to offer subsidies.

The Digital Bharat Nidhi initiative, which funds rural connectivity projects, could be used to make satellite broadband affordable in these underserved regions.

Additionally, Starlink’s direct-to-cell technology—which acts as a space-based mobile tower—could enhance connectivity in remote areas rather than compete directly with terrestrial networks.

However, this technology would require telecom spectrum access and structured agreements with Jio and Airtel to integrate with existing networks.

Industry Leaders Call for Fair Regulation

Bharti Enterprises chairman Sunil Bharti Mittal and Reliance Industries chairman Mukesh Ambani have both stressed the need for regulatory parity between satellite and telecom operators.

Mittal’s Statement:

"If satellite companies want to serve elite urban consumers, they must acquire telecom licenses, purchase spectrum, and pay license fees just like telecom operators."

The Future of India’s Satellite Broadband Market

Morgan Stanley estimates that satellite communications could generate annual revenues of $19 billion (~₹1.6 lakh crore) by tapping into India’s underserved broadband market.

Currently, only 3% of India’s 299 million households use fixed broadband, presenting a massive growth opportunity for satellite internet.

As TRAI fine-tunes regulations, the focus will remain on expanding connectivity to rural areas while ensuring fair competition between telecom operators and satellite service providers.