India’s Digital Communications Commission (DCC), the Department of Telecommunications’ (DoT) highest decision-making body, has approved a spectrum usage charge of 5% of adjusted gross revenue (AGR) for satellite internet operators, among them Starlink, Eutelsat OneWeb and Jio Satellite. The decision was reported on 8 September 2026 by Mint and The Free Press Journal, citing officials and industry executives; Mint said the commission took it at a meeting the previous week, while the Free Press Journal described it only as a recent meeting.
Key facts
- Spectrum usage charge set at 5% of AGR for satellite internet providers, per Mint and the Free Press Journal.
- A one-percentage-point reduction will apply to operators serving government-notified hard-to-connect areas, including border regions, hilly locations and islands, per Mint and the Free Press Journal.
- Spectrum will be assigned administratively rather than by auction for five years, with an option to extend by another two, per Mint.
- The Telecom Regulatory Authority of India (Trai), the sector regulator, had recommended 4% of AGR with a minimum annual payment of ₹3,500 per MHz, per Mint.
- The DoT did not accept Trai’s proposed ₹500-per-subscriber annual charge for urban customers, per both Mint and the Free Press Journal.
- Commercial satellite launches still require security approvals and other regulatory clearances, and the proposal must still pass the remaining government approval steps, per Mint and the Free Press Journal.
- Separately, Moneycontrol reported on 19 August 2026 that licensees had not yet met all security requirements.
Why it matters
The Free Press Journal says the approval removes a major regulatory hurdle for satellite broadband companies preparing to offer commercial services in India. But on the evidence of the three reports, the pricing question and the permission question are running on separate tracks: the charge is now settled in principle, while the licence to actually switch on service is not.
What the charge looks like
Officials told Mint the concession for remote areas is deliberate. “The idea is that the incentives should be based on areas where LEO/MEO (low-Earth orbit/medium-Earth orbit) satellites work better than regular technologies, like border regions, hilly areas, and islands,” one official said, in wording carried by both Mint and the Free Press Journal.
Mint says the government had been weighing this design for some time: it reported on 17 November 2025 that the state wanted to levy 1% less than the standard 5% AGR where a set share of an operator’s users lived in hard-to-connect areas, and the DoT then asked Trai for recommendations.
The two sources differ slightly on why the urban per-subscriber fee was dropped. The Free Press Journal says the DoT cited the difficulty of separating rural and urban users. Mint says the department believed a disincentive-led model would create implementation challenges because the two categories would be hard to tell apart.
What it means for Starlink’s price in India
The charge falls on operators’ adjusted gross revenue rather than on subscriber bills, and none of the three reports gives a retail price for Starlink in India or says whether operators intend to pass the levy through to customers. On the published evidence, the decision fixes part of the cost base for satellite broadband in India without yet telling a prospective buyer what a Starlink connection there will cost.
Not everyone is convinced
Satya N. Gupta, a former principal advisor at Trai, told Mint that “satellite internet is being projected as a rich users’ service.” He argued the government should recover the cost of managing spectrum rather than treat it as a source of profit, and said satellite communication can never be affordable to remote and rural masses without a very high level of subsidy.
Security clearances are the open blocker
Moneycontrol reported in August, citing official sources, that holders of Global Mobile Personal Communication by Satellite (GMPCS) licences — the permit for satellite phone and broadband service — cannot get a final go-ahead until they fully address concerns raised by the home ministry and security agencies.
According to those sources, the licences were granted subject to security demonstrations, and the outstanding items include signal spillover, lawful interception, traffic routing and protection of data generated by Indian users. One concern is whether foreign operators could bypass Indian gateways and route traffic through facilities abroad, weakening regulatory oversight. One official told Moneycontrol the DoT’s role is functional: it writes inter-agency security obligations into the licensing framework and enforces them, rather than deciding security questions itself.
Starlink’s extra hurdle: 100% foreign ownership
Moneycontrol reports that Starlink’s 100% foreign direct investment structure has become a key obstacle, with its FDI application pending for several quarters. “The core question being examined is what recourse India would have if a 100 percent foreign-owned operator fails to comply with local regulations despite having accepted them initially,” a source told the outlet.
No precedent is offered to settle that question: none of the three reports points to an earlier case of India enforcing telecom licence conditions against a wholly foreign-owned operator, which is why officials describe the issue as being examined rather than answered.
The same report says Starlink is reapplying to IN-SPACe, India’s space regulator, for its Gen 2 constellation of nearly 30,000 low-Earth-orbit satellites, which the Economic Times has reported includes newer capabilities such as direct-to-device services. IN-SPACe had previously approved only the Gen 1 constellation of 4,408 satellites. The bigger request, a source said, got caught up in broader geopolitical and trade-related considerations. For context on the hardware now going up and how other regulators are treating it, see our reports on the first 26 Starlink V3 satellites and on African regulators’ handling of Starlink V3.
Who is waiting on the delay
Moneycontrol says the hold-up affects Starlink, Eutelsat OneWeb and Jio Satellite Communications, and that the wider ecosystem is feeling it. Resellers including Tata-backed Nelco and Hughes Communications India told the outlet that the absence of operational LEO services has held back new business. “The absence of LEO does mean that certain new market opportunities have not opened up,” Nelco managing director and chief executive PJ Nath said.
Moneycontrol said its questions to Starlink and Eutelsat OneWeb drew no response. Mint said its emailed questions to the DoT went unanswered.
What happens next, and when
No date is given by any of the three reports. Moneycontrol sets no timeline for the home ministry and security agencies to sign off the outstanding security demonstrations, or for a decision on Starlink’s FDI application; Mint and the Free Press Journal give none for the remaining government approval steps on the 5% charge. Until one of those steps is dated publicly, the start of commercial satellite broadband service in India remains open-ended.
Frequently Asked Questions
What else will satellite internet operators pay in India besides the spectrum charge?
According to Mint, satellite communication operators must also pay an annual licence fee of 8% of adjusted gross revenue under the Department of Telecommunications’ current authorisation terms. That is separate from the 5% spectrum usage charge the Digital Communications Commission has now approved.
Why did Trai want a per-subscriber charge in urban areas?
Mint reports that Trai argued urban subscribers have relatively higher purchasing power and higher data demand, so non-geostationary fixed satellite service providers might focus on urban areas and undermine the goal of bridging the rural digital divide. Trai said a ₹500 annual per-subscriber urban charge would push operators to expand into rural and remote areas instead.
Did the government agree to subsidise rural satellite dishes?
No. Mint reports that the Department of Telecommunications rejected Trai’s recommendation to subsidise each fixed satellite user terminal in rural areas through direct benefit transfer or the Digital Bharat Nidhi fund, which exists to close the urban-rural digital divide.
Is Amazon’s satellite service part of the same Indian process?
Moneycontrol reports that Amazon Leo is still awaiting its licence, while Starlink, Eutelsat OneWeb and Jio Satellite Communications already hold GMPCS licences and are waiting on final security clearances. So Amazon Leo sits one step behind the three licensed operators.
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