India’s satellite-to-phone plan faces industry divide over telecom-led model

Jatin Grover
5 min read20 May 2026, 05:35 AM IST
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Currently, D2D satellite services are being rolled out in several parts of the world, especially in the US, Europe, Australia, Japan, and New Zealand. (Mint)
Summary
Direct-to-device satellite technology has opened up divisions, as telecom operators, satellite service providers and broadband firms spar over customer control, spectrum, and launch timelines.

High up in the mountains or deep in the jungles, your smartphone may still stay connected, thanks to direct-to-device (D2D) satellite technology making its way to India. However, the technology has opened up divisions, as telecom operators, satellite service providers and broadband firms spar over customer control, spectrum, and launch timelines.

The department of telecommunications (DoT) has proposed a 'wholesale' model for satellite communications like D2D, which is currently under the telecom regulator's consultation process. This means the satellite company sells its services to the telecom operator, which resells them to the final customer. Operators such as Reliance Jio, Bharti Airtel, and Vodafone Idea have aggressively defended this model on the grounds of continuity, while some satellite firms assert it will lead to connectivity gaps and poor competition.

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Satellite broadband services such as Starlink, Jio Satellite and OneWeb typically require dedicated user terminal (such as a dish or antenna) to capture signals, while under D2D, the smartphone directly receives the satellite signal. In India, Starlink and others have already received licences and are awaiting spectrum, while D2D has just entered the consultation stage.

“It is essential to adopt a telecom service provider-led service delivery model, wherein D2D services are anchored with licensed TSPs. This will ensure continuity with the existing telecom regulatory framework, including obligations relating to lawful interception, quality of service, and consumer protection,” Reliance Jio wrote to the Telecom Regulatory Authority of India (Trai) in response to its 8 April consultation paper on the satellite communication network (SCN) framework.

The three private telecom operators demanded a strictly telecom-led model, insisting that all direct customer relationships, billing, security compliances, and the user link spectrum—the actual signal connecting the smartphone to the satellite—must remain exclusively with existing mobile operators.

Some satellite firms, along with the industry association Broadband India Forum (BIF) claim this model will create monopolies and lock specialized satellite players out of serving consumers directly. BIF represents companies such as Google, Hughes, OneWeb and Nelco as its members. However, OneWeb has presented differentiating views on some of the issues.

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“Given that satellite communications is the last link to bridge the digital divide, the absence of standalone and dedicated satellite service providers as was envisaged earlier and the dependence on partnership with service licensees to provide satellite-based services (who have little or no motivation to serve the difficult-to-reach areas) will lead to reduced competition, inferior quality of service and higher consumer prices, besides perpetuating the connectivity gap that the government aims to close,” BIF president TV Ramachandran wrote to Trai on 13 May.

According to Ramachandran, the proposed framework will make satellite service deployment a subsidiary service closely linked to the commercial priorities and rollout strategies of telcos, instead of being a complementary service. “While partnership models between satellite and terrestrial operators are both valuable and desirable in many scenarios, it may also be important to preserve the flexibility for satellite operators to independently offer services wherever it is operationally, commercially or socially appropriate,” he said.

Elon Musk-backed Starlink, which already operates its own direct-to-cell service globally in partnership with telecom operators, strongly opposed any government mandates that would force satellite operators into rigid "reference agreements" or require them to hand over network control to telecom partners. Arguing for maximum commercial flexibility, Starlink told Trai that satellite and telecom operators should be completely free to negotiate mutually beneficial terms.

Other global satellite companies like Amazon, AST SpaceMobile and OneWeb have agreed to a wholesale model, but said they need to directly control their core network systems, ground stations, and the feeder-link spectrum—the frequencies connecting ground stations to satellites—to run a global satellite network efficiently.

Currently, D2D satellite services are being rolled out in several parts of the world, especially in the US, Europe, Australia, Japan, and New Zealand. Starlink, AST SpaceMobile and Lynk Global are partnering with telecom operators to provide satellite connectivity directly to regular smartphones without requiring special hardware.

In India, barring Jio, all other satellite internet providers want the government to expedite the D2D rollout even before the outcome of World Radiocommunication Conference (WRC) 2027, a key global event that will decide spectrum rules and regulatory frameworks for satellite-based direct-to-device services.

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“Airtel believes that D2D via IMT (international mobile telecommunication) spectrum represents a significant innovation and submits that India should not delay its participation in this evolution, especially where it can directly further the objectives of universal service and Digital India,” said Rahul Vatts, chief regulatory officer at Bharti Airtel, in a submission to Trai. “Airtel, therefore, supports a carefully scoped and phased introduction of D2D via IMT spectrum, offered mandatorily through access‑service providers who already hold the relevant IMT spectrum, rather than through stand‑alone satellite operators,” Vatts said.

To be sure, Airtel can partner with its own entity OneWeb to provide the services, whereas Vodafone Idea has entered into a strategic arrangement with AST SpaceMobile to enable D2D satellite-based cellular connectivity in India.

Reliance Jio, however, opposed the immediate rollout of D2D services using telecom spectrum, saying the technology is not yet ready for commercial use. The company believes India should wait for the outcome of the WRC 2027 to establish global standards and policies for interference management, device compatibility, security, and service quality before allowing D2D services in the country.

“SCN (Satellite Communication Network) is a framework under which different satellite internet services can be provided including D2D. However, you cannot bar a satellite internet operator who has obtained a GMPCS (Global Mobile Personal Communications Services) licence to sell its services including D2D directly to retail users,” said Satya N. Gupta, former principal advisor at Trai.

According to Gupta, if a satellite service provider chooses to partner with a telecom operator for last mile connectivity then it is as per its business

Among key issues, telecom operators and satellite operators are at loggerheads over the argument of "regulatory parity." While operators such as Jio and Airtel want satellite companies to face the exact same strict rules as traditional telcos, including stringent Quality of Service (QoS) benchmarks, hefty licence fees, and heavy financial bank guarantees. Satellite firms like AST SpaceMobile, Lynk Global, and Globalstar, meanwhile, want a "light-touch" regime, arguing that imposing heavy legacy telecom rules, hefty entry fees, and performance bank guarantees on a nascent, highly capital-intensive space industry will kill commercial viability before it even starts.

About the Author

Jatin is based in New Delhi and writes on telecom and technology with a keen interest in policy and regulation. With over five years of reporting experience across Informist Media, Financial Express and now Mint, he has extensively covered the telecom, information technology, electronics and semiconductor sectors.<br><br>A commerce graduate, Jatin's work focuses on tracking industry developments, regulatory changes and policy decisions that shape India’s evolving digital ecosystem. Over the years, he has reported on key trends and shifts across these sectors, bringing clarity to complex policy and business issues.<br><br>Known for his strong news sense, Jatin focuses on breaking stories and delivering in-depth reporting that offers readers an understanding of complex topics, policy decisions and corporate developments. His work often examines the intersection of policy and business, highlighting how regulatory decisions impact industry strategy, pricing, and consumer outcomes.<br><br>He brings a strong domain understanding for Mint and his work is widely picked up by other media firms. With a focus on accuracy and depth, he aims to break down developments into clear, accessible insights for readers, while continuing to track emerging trends shaping the future of India’s telecom and technology sectors.

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