India’s Telecom Regulatory Authority (TRAI) on November 5 recommended a new licence category that would let satellite operators including Starlink sell network capacity wholesale to Indian telecom companies, and would open two technical routes for ordinary smartphones to connect directly to satellites — so-called direct-to-device (D2D) service. The recommendations have gone to the Department of Telecommunications (DoT), which takes the final decision, according to Moneycontrol.
What the new authorisation would cover
The proposed Satellite Communication Network (SCN) Provider Authorisation would be issued under Section 3(1)(b) of the Telecommunications Act, 2023, valid for 20 years and renewable for another 20, Moneycontrol reports. Holders could wholesale capacity — branded Satellite Communication Network-as-a-Service — to licensed operators, but could not sell telecom services to end users.
Tesla North, citing TRAI’s Press Release No. 151/2026, says the package permits Fixed Satellite Service (FSS), mobile satellite service (MSS), direct-to-device over MSS spectrum, and direct-to-device using a partner’s IMT spectrum through shared satellite networks. Moneycontrol adds that TRAI would also allow existing holders of eligible telecom licences and authorisations — including access, internet and long-distance authorisations — to sell the same network-as-a-service product, subject to prescribed eligibility, technical, operational and security requirements.
The security conditions attached include lawful interception, traffic monitoring and routing India-originating or India-terminating satellite traffic through gateways inside the country, IBTimes India reports.
Why it matters
Moneycontrol says the framework would let companies such as Starlink, Amazon Leo and Eutelsat OneWeb monetise their satellite infrastructure by supplying capacity to telecom operators and other eligible service providers, who would in turn sell connectivity to consumers in what it calls India’s largely untapped direct-to-device market.
With satellite operators shut out of retail, a Starlink-powered phone or broadband package would be priced and billed by the licensed access provider buying the capacity, not by Starlink — and none of the four reports puts a number on what that would cost. Tesla North draws the same practical consequence for rollout: under this design, Starlink could still need a telco partner for phone-to-satellite service even after obtaining a network licence, depending on what DoT accepts.
That is what makes India’s proposal unusual. Satellite-to-phone services elsewhere have reached handsets through carrier tie-ups the operators chose to strike, as with the rival direct-to-device pairings elsewhere we have covered; TRAI would instead write the intermediary into the licence itself, making the partnership a condition of market entry rather than a commercial choice.
The two direct-to-device routes
Dedicated satellite spectrum
For the mobile satellite service route, the Free Press Journal reports that dedicated L-band and S-band frequencies would link compatible smartphones straight to satellites.
Borrowed telco spectrum
The second route reuses the IMT mobile frequencies telcos already hold, in the 600, 700, 800, 900, 1800 and 2100 MHz bands. IBTimes India says satellite companies would need agreements with the operators holding the relevant spectrum, and that the spectrum rights would stay with those operators. Tesla North specifies that partner telcos would need to hold the relevant IMT channels across all 22 of India’s licensed service areas — a bar that favours the three national carriers over regional players. Moneycontrol reports TRAI recommended no additional spectrum charges on operators for using their already-assigned IMT spectrum for satellite direct-to-device.
The fees, and who actually pays them
Moneycontrol lists the money a would-be network provider would have to put up:
- Authorisation fee of 8% of adjusted gross revenue, with no minimum
- Entry fee of Rs 37.5 lakh
- Initial bank guarantee of Rs 45 lakh
- Minimum equity and net worth of Rs 60 lakh each
- Application processing fee of Rs 10,000
- Annual minimum spectrum charge of Rs 3,500 per MHz where the government assigns satellite spectrum directly
In plain terms, the entry fee and the initial bank guarantee come to roughly $42,000 and $51,000 at current exchange rates — trivial next to the cost of building and launching a constellation, so they are no obstacle to SpaceX or Amazon. “Adjusted gross revenue” is the measure of operator income the Indian government taxes, so the 8% authorisation fee is a cut of what the satellite network provider earns selling wholesale capacity; the bank guarantee is a refundable security deposit against those dues.
Every one of these charges sits upstream, on the satellite operator and its telco partner, rather than on a subscriber’s bill, and they are far too small to account for whatever an Indian Starlink plan eventually costs. On the evidence in these four reports, the retail price will be decided by two numbers that are not public and that DoT’s ruling will not reveal: the wholesale rate Starlink charges its Indian partner, and the margin that partner adds on top.
How spectrum would be handed out
Moneycontrol notes TRAI favoured administrative assignment rather than auction — a position it says differs from Reliance Jio, India’s largest telecom operator, which had sought auction-based allocation specifically for direct-to-device.
This is not TRAI’s first pass at the question: Tesla North says spectrum charges would track the DoT framework already set out in the regulator’s May 9, 2025 recommendations, which the new package would inherit rather than rewrite.
Who stands to gain
IBTimes India and Moneycontrol both name Tata’s Nelco alongside Starlink, Amazon Leo and Eutelsat OneWeb as potential capacity suppliers or service providers. On the telco side, both outlets say Jio, Bharti Airtel and Vodafone Idea could use satellite infrastructure to extend coverage into remote and underserved areas. Airtel could draw on its association with Eutelsat OneWeb, while Vodafone Idea has a strategic arrangement with AST SpaceMobile, the US direct-to-device satellite firm, for D2D cellular connectivity in India.
Nothing is approved yet
All four reports stress that these are recommendations, not rules. Tesla North puts it bluntly: “Recommendations are not law.” DoT still has to adopt the package, assign spectrum and settle pricing before any such offer reaches an Indian handset.
Separately, Moneycontrol reports that Starlink, Eutelsat OneWeb and Jio Satellite have yet to launch commercial satellite broadband in India at all, with sources saying they are still working through government security requirements to win final clearances — the same bottleneck behind Starlink still waiting on security clearances and spectrum. Tesla North distinguishes this framework from a separate ANI briefing reporting that Starlink was the last of three satcom licensees to apply, noting that the ANI story covered licence timing and security paperwork and did not mention the new proposal at all.
Frequently Asked Questions
Which phones sold in India would work with the MSS-based satellite service?
None today. TRAI’s recommendation is that the central government encourage smartphone makers to build the modules needed for the applicable mobile satellite service bands into future handsets sold in India, according to Moneycontrol, which quotes the regulator directly. That is a forward-looking request about devices not yet on the market, and Tesla North reports it would only follow government acceptance of the recommendations — so no phone on sale in India is specified as MSS-capable under this framework.
Does India have to wait for WRC-27 before IMT-based direct-to-device service can start?
Not under TRAI’s proposal. All four reports say the regulator recommended permitting IMT spectrum-based direct-to-device service on a non-interference, non-protection basis without waiting for the outcome of the World Radiocommunication Conference 2027. Tesla North adds that TRAI framed this under Article 4.4 of the ITU Radio Regulations.
How long would a satellite spectrum assignment last?
Moneycontrol reports that an assignment would be valid for up to five years, with the government able to extend it by a further two years depending on market conditions.
Which spectrum would the feeder links and user links use?
Moneycontrol reports that feeder links — the ground-to-satellite backhaul — would use fixed satellite service spectrum, while the user links reaching the customer would use fixed and/or mobile satellite service spectrum.
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