Nearly four years after Bharti-backed Eutelsat OneWeb secured India’s first satellite internet licence in 2022, and after the Jio-SES joint venture and Starlink secured licences, the rollout of commercial satellite broadband services remains stuck. In fact, more than a year after the telecom regulator recommended the framework for spectrum allocation, the government is yet to finalize the operating terms.
Why are satellite internet providers still unable to begin operations in India?
The delay stems largely from security concerns, particularly the fact that India’s internet traffic exits India, often via foreign operators such as Elon Musk-owned Starlink and Amazon’s Leo. Even though these companies have promised to comply with security rules and demonstrated how their systems work, the government remains cautious. The concern is that these companies use a technology called inter-satellite links (ISL), which allows satellites in orbit to communicate directly with each other using optical lasers.
According to government officials, there are certain security concerns that ISL technology could enable operators to bypass Indian gateways entirely and route traffic through gateways in other countries, reducing the ability of Indian authorities to monitor and regulate internet traffic.
Have the pricing and spectrum terms been decided?
No, the department of telecommunications (DoT) is yet to finalize the spectrum allocation, pricing and other terms for satellite internet companies. In May 2025, the Telecom Regulatory Authority of India (Trai) recommended that satellite communication companies pay 4% of their adjusted gross revenue (AGR) or ₹3,500 per MHz, whichever is higher, as spectrum charges to the government. To deter companies from encroaching on urban markets, Trai also recommended an additional annual fee of ₹500 per subscriber for urban fixed satellite service providers.
DoT, however, did not agree with some of Trai’s pricing recommendations and wanted a 5% AGR charge with a 1% discount if a section of their users lived in hard-to-connect areas such as borders, hills, islands and those notified by the government. However, no final decision has been made so far, leaving the service rollout in limbo.
How does the government want companies to operate?
Satellite internet operators must route all internet traffic from users in India through gateways located in the country, according to the government’s security guidelines. The rules explicitly prohibit operators from using ISL to route traffic through foreign gateways, including during the failure of a satellite earth station gateway located in India.
Operators must successfully demonstrate lawful interception systems (LIS) and monitoring facilities prior to providing services. The government also wants the operation, maintenance and control facility for the gateway and user terminals to be located in India.
To be sure, companies such as OneWeb, Starlink and Jio-SES, which hold a Global Mobile Personal Communications by Satellite (GMPCS) licence, have already signed the security undertakings and given demos to the government.
What did these companies say in their defence?
On 10 June, Starlink said it remains in active discussions with the Indian government and has received encouraging feedback on its potential to support the country’s connectivity goals. “To align with India’s sovereign technology, regulatory and security requirements, Starlink has set up a bespoke deployment model for India…,” Lauren Dreyer, vice president of Starlink Business Operations, said in a post on X.
Industry executives said the companies have explained to the government that ISL can be used if the two existing customer service gateways go down. Even then, at any given point in time, it has been assured that the traffic will latch onto Indian gateways, which will have unique IDs. Besides, law enforcement agencies can conduct periodic inspections and identify traffic patterns, an industry executive said, adding that all the commitments and agreements have been signed.
What should the government do?
The government already has undertakings and commitments, and if any operator does not comply with the law of the land, their authorization or licence can be cancelled. Further, to address certain security challenges, the government's immediate priority should be to establish an exceptionally stringent know-your-customer (KYC) verification process for satellite terminals and user connections, according to experts.
Details such as records of consumer devices and terminal locations can be requested from companies, and the government can conduct periodic inspections to verify compliance with security norms. The government can also order the physical surrender of devices in the event of unusual circumstances, such as war or conflict, policy analysts recommend.