India Moves Closer to Satellite Internet: TRAI Recommends Usage Fees and Policy Framework

India Moves Closer to Satellite Internet: TRAI Recommends Usage Fees and Policy Framework

May 10, 2025 | Technology & Digital India | By LineUp Media

India is one step closer to enabling satellite internet services from global providers like Starlink, after the Telecom Regulatory Authority of India (TRAI) issued key recommendations on Friday to regulate the sector.

TRAI has proposed that companies offering fixed satellite internet services must pay 4% of their Adjusted Gross Revenue (AGR) as spectrum usage fees. In addition, firms will be required to pay an annual fee of ₹500 per urban subscriber.

TRAI’s Key Recommendations:

• 4% spectrum usage fee on AGR

• ₹500 annual fee per urban user

• Policy framework to streamline service roll-out and regulation

These recommendations aim to pave the way for satellite broadband services by firms such as Elon Musk’s Starlink, OneWeb, and other global space internet providers in India.

Why Satellite Internet Matters

Satellite internet can provide high-speed connectivity to remote, rural, and underserved regions where fiber or mobile networks are not yet available. This has the potential to revolutionize:

• Digital access in rural areas

• Online education

• Telemedicine

• Access to e-governance services

By extending internet reach to the last mile, satellite internet could become a cornerstone of India's Digital India vision.

What Happens Next?

The TRAI recommendations will now be reviewed by the Department of Telecommunications (DoT). If accepted, they will serve as the regulatory foundation for satellite internet services to formally launch across the country.

This marks a major step in India’s journey toward next-generation internet infrastructure and global connectivity standards.

Conclusion:
TRAI’s framework ensures a balanced approach—encouraging innovation while maintaining fair use of spectrum and regulatory oversight. If adopted, these recommendations could unlock high-speed internet for millions, especially in hard-to-reach areas.