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Consultation Paper No. 06/2026
भारतीय दरू संचार विनियामक प्रानिकरण
Telecom Regulatory Authority of India
Consultation Paper on
the Framework for Satellite Communication Network
Authorisation, and Assignment of Spectrum to Satellite
Communication Network Providers
New Delhi, India
08.04.2026
Tower F, NBCC World Trade Centre, Nauroji Nagar, New Delhi-110029Written Comments on the Consultation Paper are invited from
stakeholders by 06.05.2026 and counter-comments by 20.05.2026. The
comments and counter-comments may be sent, preferably in electronic
form, to Shri Akhilesh Kumar Trivedi, Advisor (Networks, Spectrum and
Licensing), TRAI on the email ID advmn@trai.gov.in. Comments and
counter-comments received from stakeholders will be posted on the
TRAI’s website (www.trai.gov.in).
For any clarification/ information, Sh ri Akhilesh Kumar Trivedi, Advisor
(Networks, Spectrum and Licensing), T RAI, may be contacted at Telephone
No. +91-11-20907758.Contents
CHAPTER I: INTRODUCTION ................................................................................ 1
CHAPTER II: EXAMINATION OF ISSUES RELATED TO AUTHORISATION
FRAMEWORK AND ASSIGNMENT OF SPECTRUM .................................................. 20
CHAPTER III: EXAMINATION OF ISSUES RELATED TO SPECTRUM CHARGES AND
OTHER FINANCIAL CONDITIONS ...................................................................... 123
CHAPTER IV: ISSUES FOR CONSULTATION ....................................................... 196
ANNEXURES .................................................................................................... 209
LIST OF ACRONYMS ......................................................................................... 264CHAPTER I: INTRODUCTION
A. Evolution of Satellite Communications
1.1 In October 1945, Arthur C. Clarke, an English science fiction writer, published
a seminal article titled ‘Extra-Terrestrial Relays: Can Rocket Stations Give
Worldwide Radio Coverage?’ in the British magazine - Wireless World1. In the
article, Clarke laid the foundation for satellite communications. Clarke’s idea
was revolutionary. Clarke proposed the concept of communication satellites to
enable global radio and TV coverage. Remarkably, he performed precise
calculations showing that if a satellite orbited at approximately 35,786 km
from the Earth's surface, it would orbit in sync with the Earth’s rotation. Such
a satellite would appear stationary from any fixed point on Earth — what we
now call a geostationary orbit. He also pointed out that three such satellites,
placed 120 degrees apart above the equator in the geostationary orbit, could
provide global communications coverage.2
1.2 The journey from concept to reality began in October 1957, when the former
Soviet Union launched the first satellite, Sputnik 1.3 Sputnik 1 stayed in its
orbit for about three months. This historic event spurred significant
advancements in satellite technology. Clarke’s vision of satellite
communication moved closer to realization in July 1962 with the launch of
Telstar 1. Telstar 1 was the first satellite to transmit live television images
1 Source: https://spacelaw.uniandes.edu.co/images/d_arthur_clarke.pdf
2 Source: https://www.comsoc.org/node/19071
3 Source: https://www.nasa.gov/history/dawn-of-the-space-age/
1between Europe and North America.4 Telstar 1 was in a non-geostationary
orbit, so it worked only for short periods as it moved. The Clarke’s concept
finally became a reality in 1963 when NASA successfully launched Syncom-2,
the first geosynchronous satellite, proving that Clarke’s idea from nearly two
decades earlier was indeed achievable.5
1.3 Following the technological milestones in satellite communication, the U.S.
government passed the Communications Satellite Act in 1962. The Act paved
the way for the formation of INTELSAT - the international satellite
communications consortium. INTELSAT began in 1964 with 11 member
countries.6 In 1965, Intelsat-1 (nicknamed Early Bird), the first commercial
geostationary communications satellite, started providing regular telephone
service across the Atlantic Ocean7, fulfilling Clarke's vision. Over the years,
satellite technology advanced significantly, leading to greater capabilities in
global communications.
B. Development of Satellite Communications in India
1.4 With the live transmission of Tokyo Olympic Games across the Pacific by the
American Satellite ‘Syncom-3’ demonstrating the power of communication
satellites, Dr. Vikram Sarabhai, the founding father of Indian space
programme, quickly recognized the benefits of space technologies for India.
Dr. Sarabhai was convinced and envisioned that the resources in space have
the potential to address the real problems of man and society. To spearhead
4 Source: https://www.nasa.gov/history/telstar-opened-era-of-global-satellite-television/
5 Source: https://www.nasa.gov/image-article/first-geosynchronous-satellite/
6 Source: https://k2communications.net/the-intelsat-story/
7 Source: https://www.historyofinformation.com/detail.php?id=3152
2the space research activities, Indian National Committee for Space Research
(INCOSPAR) was set up in 1962 under the chairmanship of Dr. Sarabhai.
Subsequently, Indian Space Research Organisation (ISRO) was established in
August 1969, in place of INCOSPAR. The Government of India constituted the
Space Commission and established Department of Space (DoS) in June 1972
and brought ISRO under DoS in September 1972.8 In 1975, India launched
its first satellite, Aryabhata, primarily for scientific research.9 In 1983, the
Indian National Satellite (INSAT) system was established.10 It initiated a major
revolution in India’s communications sector. It contributed immensely to the
expansion of television, telephony, and meteorological services, marking a
critical phase in India’s satellite communication history. In the decades that
followed, India’s communication satellite program grew steadily, achieving
significant successes that strengthened national connectivity and positioned
the country as a key player in satellite communications.
C. Satellite Communication Network
1.5 A satellite used for telecommunications is often referred to as a
‘communication satellite’. In general, communication satellites serve as relay
stations in space, receiving signals transmitted from Earth, amplifying them,
and retransmitting them to other locations on the globe.
1.6 Satellite-based communication systems offer a unique ability to reach remote,
inaccessible or sparsely-populated areas – including regions of strategic
importance or socio-economic significance, where terrestrial mobile coverage
8 Source: https://www.isro.gov.in/genesis.html
9 Source: https://www.isro.gov.in/aryabhata_1.html
10 Source: https://www.isro.gov.in/CommunicatioSatellitenNew.html
3or fibre connectivity may be absent or extremely expensive to deploy. By
bypassing the need for large ground-infrastructure networks, such satellite
systems can help bridge the digital divide, extend telecommunication and
broadband services, and enhance national coverage. In the Indian context,
with its vast geography and varied terrain, satellite systems are especially
well-suited to extend connectivity into underserved areas.
1.7 A typical satellite communication system consists of space segment, control
segment and ground segment as outlined below:
(a) Space segment – One or more satellites in orbit.
(b) Control segment – Ground-based facilities responsible for satellite
command & control, payload monitoring and traffic/ resource
management onboard the satellite.
(c) Ground segment – Earth stations through which traffic is sent and
received. These earth stations are of three functional types:
(i) User stations: Earth stations providing direct access to the space
segment - for example handsets, very small aperture terminals
(VSATs).
(ii) Interface stations (gateways): Earth stations that interface the
satellite network with terrestrial networks, acting as gateways
between the space and terrestrial domains – often referred to as
gateway earth stations.
(iii) Service stations (hubs): Earth stations that collect or distribute
information from/ to user earth stations via the space segment,
often acting as central nodes in the network.
1.8 The following figure shows three key elements of a typical satellite
communication system (viz. satellite, gateway earth station, and user earth
station).
4Figure 1.1: Key Elements of Satellite Communication Systems
1.9 The gateway earth station acts as the bridge linking the satellite
communication network to the terrestrial communication network. It handles
conversion, routing, and coordination of traffic between the satellite and
terrestrial segments.
1.10 The trajectory of a satellite around Earth is known as orbit. The most common
orbits followed by communication satellites are Low Earth Orbit (LEO),
Medium Earth Orbit (MEO), and Geostationary Satellite Orbit (GSO). MEO and
LEO satellites collectively are also called Non-Geo Stationary Orbit (NGSO)
satellites.
1.11 GSO satellites are at about 36,000 kilometers above the Earth, a place where
they appear fixed in the sky when observed from the ground. They are
commonly used for communication, weather monitoring, Direct-To-Home
(DTH) television broadcasting, and internet provisioning. NGSO satellites at
5MEO altitudes are between 8,000 and 20,000 kilometers above the Earth and
LEO altitudes are between 400 to 2,000 kilometers above the Earth. Since
NGSO satellites move across the sky during their orbit around the Earth, NGSO
operators deploy a fleet of satellites, generally called ‘constellations’, to
provide continuous service from these altitudes. NGSO constellations intend
to cover the globe providing high-bandwidth connectivity and processing high
volumes of data with minimal delay. The following figure depicts the orbital
altitudes and coverage areas of GSO and NGSO satellites.
Figure 1.2: Schematic diagram of orbital altitudes and coverage
areas of satellites
1.12 The ITU publication titled ‘The Last-mile Internet Connectivity Solutions Guide
Sustainable connectivity options for unconnected sites 2020’, provides a
comparison of GEO, MEO and LEO characteristics. Some of the characteristics
are given in the following table:
6Table 1.1: Characteristics of GEO, MEO and LEO Satellites11
Number of
Satellite Orbital Latency
Altitude satellites to
category period (round-trip)
span globe
GEO 35,786 km 24 hours 477 ms 3-4
MEO 8,000 to 127 minutes to 27 to 477 ms 5 to 30
20,000 km 24 hours
LEO 400 to 88 minutes to 2 to 27 ms 100s or 1000s
2,000 km 127 minutes
1.13 As GSO satellites are at geostationary location and at long distances from the
Earth, the gateway earth stations of GSO satellites require a fixed antenna
and stable communication link to maintain a constant connection with the
satellite. In case of NGSO satellites, which are non-geostationary, the gateway
earth stations require precise tracking, rapid beamforming, and effective
interference management.
1.14 The conventional GSO satellites operate with a single wide beam spanning a
large area (say entire Indian territory). Therefore, for conventional GSO
satellites, a single gateway earth station can provide adequate coverage for a
region. On the other hand, NGSO satellites operate through much narrower
beams. For this reason, NGSO satellite systems need multiple beams to cover
a geographical area as compared to a single wide beam of conventional GSO
satellites. As a result, there may be a need to set up multiple gateway earth
stations to control a large number of beams in case of NGSO satellite systems.
11 Source: https://www.itu.int/dms_pub/itu-d/opb/tnd/D-TND-01-2020-PDF-E.pdf
71.15 Amongst satellite-based communication services, Fixed-Satellite Service (FSS)
and Mobile-Satellite Service (MSS) are the most prominent services. ITU’s
Radio Regulations 202412 provide the following definitions of the terms ‘FSS’
and ‘MSS’:
“1.21 fixed-satellite service: A radiocommunication service between earth
stations at given positions, when one or more satellites are used; the given
position may be a specified fixed point or any fixed point within specified
areas; in some cases this service includes satellite-to-satellite links, which may
also be operated in the inter-satellite service; the fixed-satellite service may
also include feeder links for other space radiocommunication services.”
“1.25 mobile-satellite service: A radiocommunication service: between mobile
earth stations and one or more space stations, or between space stations
used by this service; or between mobile earth stations by means of one or
more space stations. This service may also include feeder links necessary for
its operation.”
1.16 Simply put, FSS supports communications from one fixed-point to another
fixed-point, such as VSAT, Teleports, etc. FSS is used for providing
connectivity at fixed locations (like offices or remote sites).13 MSS supports
communications between mobile devices, such as satellite phones. MSS is
used for providing connectivity to mobile platforms (like ships, planes, or
handheld satellite phones).
12 Source: https://www.itu.int/hub/publication/r-reg-rr-2024/
13 As per the extant policy regime in India, user terminal stations on moving platforms are also permitted for provisioning of
connectivity subject to compliance to relevant TEC standard(s) and conditions mentioned therein.
Source: Unified License Agreement
81.17 FSS and MSS rely on carefully allocated frequency bands, each chosen to
balance coverage, capacity, and resilience against atmospheric effects. Lower
frequency bands14 such as L-band (1-2 GHz) and S-band (2- 4 GHz) are often
favoured for providing MSS due to their better propagation characteristics.
The higher frequency bands15 such as C-band (4-8 GHz), Ku-band (10-15 GHz)
and Ka-band (17-31 GHz) are often used for providing FSS; the higher bands
enable high-capacity fixed services but face challenges like rain fade.
According to European Space Agency16, because of satellites’ increased use,
number and size, congestion has become a serious issue in the lower
frequency bands. New technologies are being investigated so that higher
bands can be used. The higher frequency bands typically give access to wider
bandwidths.
D. Context for the Proposed Satellite Communication Network
Authorisation
1.18 In December 2023, the Indian Parliament enacted ‘the Telecommunications
Act, 2023’17. Section 3 of the Telecommunications Act, 2023 empowers the
Central Government to grant authorisations. Sub-section (1) and (2) of Section
3 are reproduced below:
“3 (1) Any person intending to—
(a) provide telecommunication services;
(b) establish, operate, maintain or expand telecommunication network; or
(c) possess radio equipment,
14 Lower frequencies suffer less from atmospheric attenuation (rain fade, clouds, etc.), making them more reliable for mobile
platforms.
15 Higher frequencies support wider bandwidths, enabling faster data rates.
16 Source: https://www.esa.int/Applications/Connectivity_and_Secure_Communications/Satellite_frequency_bands
17 Source: https://egazette.gov.in/WriteReadData/2023/250880.pdf
9shall obtain an authorisation from the Central Government, subject to such
terms and conditions, including fees or charges, as may be prescribed.
(2) The Central Government may while making rules under sub-section (1)
provide for different terms and conditions of authorisation for different types
of telecommunication services, telecommunication network or radio
equipment.”
1.19 After the enactment of the Telecommunications Act, 2023, DoT sent two
separate references under Section 11(1)(a) of the TRAI Act, 1997 for seeking
recommendations of TRAI with respect to authorisations under the
Telecommunications Act, 2023, as outlined below:
(a) Reference dated 21.06.2024: Through the reference dated 21.06.2024,
DoT requested TRAI to provide recommendations on terms and
conditions for authorisation to provide telecommunication services under
Section 3(1)(a) of the Telecommunications Act, 2023.
(b) Reference dated 26.07.2024: Through the reference dated 26.07.2024
(Annexure 1.1) DoT requested TRAI to provide recommendations on
terms and conditions for authorisation to establish, operate, maintain or
expand telecommunication network under Section 3(1)(b) of the
Telecommunications Act, 2023.
1.20 The relevant developments with respect to the afore-mentioned references
are outlined in the following sub-sections.
(1) Developments w.r.t. the DoT’s reference dated 21.06.2024
1.21 With respect to the DoT’s reference dated 21.06.2024, TRAI issued a
consultation paper dated 11.07.2024 for soliciting comments from
stakeholders. After a comprehensive consultation with stakeholders, TRAI, on
1018.09.2024, sent its recommendations on ‘the Framework for Service
Authorisations to be Granted Under the Telecommunications Act, 2023’18.
Through these recommendations, TRAI provided recommendations on a
range of service authorisations including ‘Satellite-based Telecommunication
Service Authorisation’.
1.22 Subsequently, DoT, through its back-reference dated 14.01.2025 to the TRAI’s
recommendations dated 18.09.2024, informed, inter-alia, that “[t]o enable
technology neutral and future ready service authorisation regime, the
Government is of the view that instead of having a separate authorisation for
satellite-based telecommunication services, the use of satellite technology/
media may be permitted to each type of authorised entity under the Main
Service Authorisations19 category.”
1.23 TRAI, in its response dated 28.02.202520 to the DoT’s back-reference dated
14.01.2025, informed that “[c]onsidering the specialized nature of the
satellite-based telecommunication services, to attract business entities to
enter the relatively underdeveloped satellite-based telecommunication service
segment in the country, and to promote and preserve the business focus of
18 TRAI’s recommendations dated 18.09.2024 on ‘the Framework for Service Authorisations to be Granted Under the
Telecommunications Act, 2023’ may be accessed at the following URL:
https://trai.gov.in/sites/default/files/2024-11/Recommendation_18092024.pdf
19 Through the recommendations on ‘the Framework for Service Authorisations to be Granted Under the Telecommunications
Act, 2023’, TRAI recommended, inter-alia, that the service authorisations to be granted under Section 3(1)(a) of the
Telecommunications Act, 2023 should be organized in the following manner:
(a) Main service authorisations,
(b) Miscellaneous service authorisations,
(c) Captive service authorisations.
Under the Main Service Authorisations, TRAI proposed the following service authorisations:
Unified Service Authorisation, Access Service Authorisation, Internet Service Authorisation, Long Distance Service
Authorisation, Satellite-Based Telecommunication Service Authorisation, and M2M WAN service authorisation.
20 Response of TRAI to the Back-Reference dated 14.01.2025 on the Recommendations of TRAI on the ‘Framework for Service
Authorisations to be Granted Under the Telecommunications Act, 2023’ may be accessed at the following URL:
https://trai.gov.in/sites/default/files/2025-02/Recommendation_28022025.pdf
11such entities, the Authority recommended a separate service authorisation for
satellite-based telecommunication service in the country with reasonably light
financial obligations including low entry fees.” Based on its analysis, TRAI
conveyed to DoT that it “does not agree with the DoT’s prima facie view
regarding removal of separate service authorisations for Satellite-based
Telecommunication Service and M2M WAN Service.”
1.24 Thereafter, DoT, on 05.09.2025, issued a draft21 of the Telecommunication
(Authorisation for Provision of Main Telecommunication Services) Rules, 2025
for public consultation. In the draft rules dated 05.09.2025, DoT did not
propose to include the Satellite-based Telecommunication Service
Authorisation under the main telecommunication services authorisation22.
Instead, DoT proposed to include a chapter on “Specific Conditions for
Provision of Telecommunication Services Using Satellite System”23, the
provisions of which would become applicable on any authorised entity
providing telecommunication service using satellite networks including non-
terrestrial networks and GMPCS networks.
(2) Developments w.r.t. the DoT’s reference dated 26.07.2024
1.25 Through the reference dated 26.07.2024, DoT requested TRAI to provide
recommendations on terms and conditions for the authorisation to establish,
operate, maintain, or expand telecommunication network under Section
3(1)(b) of the Telecommunications Act, 2023. DoT suggested that while
21 Source: https://egazette.gov.in/(S(ybiekan4u1zm4xfa3n3zccne))/ViewPDF.aspx
22 In the draft rules dated 05.09.2025, DoT has proposed that Main telecommunication services authorisation shall comprise of
the following sub-categories: (a) unified service authorisation; (b) access service authorisation; (c) internet service
authorisation; and (d) long distance service authorisation.
23 Chapter 7 of the draft rules dated 05.09.2025
12formulating recommendations, TRAI may also consider the recommendations
of TRAI, under consideration of the Government, like recommendations on
‘Licensing framework for establishing and operating Satellite Earth Station
Gateway (SESG)’ dated 29.11.202224 which primarily relates to establishing
telecommunication networks under Section 3(1)(b) of the
Telecommunications Act 2023, and would provide telecommunication network
as a service to authorised entities under Section 3(1)(a) of the
Telecommunications Act 2023 only.
1.26 Subsequently, through a supplementary reference dated 17.10.2024
(Annexure 1.2), DoT conveyed to TRAI that “keeping in view the increasing
use of NTN (Non terrestrial networks) including satellite communication
networks in provisioning of FSS (Fixed Satellite Services) including VSAT
services and MSS (Mobile Satellite Services), TRAI may consider an
authorisation for satellite communication network under Section 3(1)(b) of the
Telecommunications Act, 2023 alongwith the following:
a. Terms and conditions relating to such authorisation
b. Provision of assignment of spectrum for both feeder link as well as user
link under such authorisation
c. Service area of such authorisation.”
1.27 In this regard, TRAI issued a consultation paper dated 22.10.2024 for soliciting
comments from stakeholders. After a comprehensive consultation with
stakeholders, TRAI provided its recommendations dated 17.02.202525 on ‘the
24 TRAI’s recommendations on the ‘Licensing framework for establishing and operating Satellite Earth Station Gateway (SESG)’
dated 29.11.2022 may be accessed at the following URL:
https://trai.gov.in/sites/default/files/2024-09/Recommendation_29112022.pdf
25 Recommendations dated 17.02.2025: Recommendation of TRAI on the ‘Terms and Conditions of Network Authorisations to be
Granted Under the Telecommunications Act, 2023’ dated 17.02.2025
[URL: https://trai.gov.in/sites/default/files/2025-02/Recommendations_17022025.pdf]
13Terms and Conditions of Network Authorisations to be Granted Under the
Telecommunications Act, 2023’. The relevant points of the recommendations
dated 17.02.2025 are given below:
(a) TRAI recommended that the Central Government should introduce
Satellite Earth Station Gateway (SESG) Provider Authorisation26 under
Section 3(1)(b) of the Telecommunications Act, 2023.
(b) TRAI expressed a view that “at the principle level, authorised spectrum
should be granted to service authorised entities only and not to network
authorised entities.”
(c) About the satellite communication network authorisation suggested by
DoT, TRAI conducted a detailed analysis and expressed its considered
opinion that “the permissible options for the delivery of satellite-based
telecommunication services have been enabled through the Authority’s
recommendations dated 18.09.2024 in respect of Satellite-based
Telecommunication Service authorisation and the present
recommendations in respect of the SESG authorisation. Accordingly, the
Authority is of the view that “there is no need for introducing any
additional authorisation for satellite communication network under the
Telecommunications Act, 2023, at this stage”.
26 The salient recommendations of TRAI in respect of the SESG Provider Authorisation are given below:
(a) The Central Government should introduce Satellite Earth Station Gateway (SESG) Provider Authorisation under Section
3(1)(b) of the Telecommunications Act, 2023.
(b) Any entity intending to establish, operate, maintain, or expand satellite earth station gateway (SESG) in India should be
required to obtain SESG Provider Authorisation from the Central Government.
(c) Broad scope of the SESG Provider Authorisation: To provide its SESG infrastructure to the entities which are authorised
under Section 3(1)(a) of the Telecommunications Act, 2023 and which are permitted to use satellite media under their
scope of service
(d) The baseband equipment to be installed at SESGs should be owned by the eligible service authorised entity interworking
with the SESG Provider authorised entity. However, the SESG Provider authorised entity should be permitted to install the
baseband equipment at its SESGs on behalf of the eligible service authorised entities.
(e) The satellite spectrum (gateway-side spectrum as well as user-side spectrum) should be assigned only to the eligible
service authorised entities and not to SESG Provider authorised entities. However, for configuration and provisioning
purposes, the SESG Provider authorised entity should be permitted to utilize the spectrum of its partnering service
authorised entity on its SESGs. Such configuration and provisioning should be done on behalf of the partnering service
authorised entity, and the right to use of spectrum should remain with the partnering service authorised entity.
141.28 Subsequently, DoT, through its back-reference dated 03.07.2025 to the TRAI’s
recommendations dated 17.02.2025, informed, inter-alia, as below:
“4.2 …It is pertinent to note here that the Government has not accepted the
TRAI’s recommendations on the Satellite-based Telecommunication Service
Authorisation. Therefore, the primary basis on which TRAI concluded that
there is no need to introduce an additional authorisation for satellite
communication networks under Section 3(1)(b) of the Telecommunications
Act, 2023, is no longer valid. Further, SCN authorisation under section 3(1)
(b) will enable the relevant authorised entities under Section 3(1)(a), in mutual
commercial agreement with the SCN authorised entities, to provide
supplemental coverage from space using Mobile Satellite Service (MSS)
spectrum bands to the users in areas with limited or no terrestrial coverage.
…
Absence of such SCN authorisation would either leave a gap in the regulatory
framework for provisioning of telecommunication services in areas uncovered
through terrestrial network or it would require each authorised entity,
providing Unified service or Access service, and intending to provide
supplemental coverage services, to obtain the assignment of MSS spectrum
separately and establish parallel networks. Such duplicity would be capex and
opex inefficient.
…
4.6 Further, the Telecommunications Act, 2023 does not restrict spectrum
assignment solely to entities under Section 3(1)(a), and limiting it as such may
constrain future policy flexibility. Allowing the flexibility of obtaining spectrum
by authorised entity either under 3(1)(a) or 3(1)(b) (Service or Network) will
enable regulatory framework to meet the requirement of future network and
evolving technology in this space.
154.7 Therefore, the views of TRAI in respect of SCN authorisation and
spectrum assignment to entities authorised under Section 3(1)(b), as stated
above, need modification.
4.8 Hence, to avoid the regulatory gap - given that the Government has not
accepted the Satellite-based Telecommunication Service Authorisation under
Section 3(1)(a) - the Government proposes the introduction of a Satellite
Communication Network (SCN) Authorisation under Section 3(1)(b) and
requests TRAI to provide terms and conditions for Satellite Communication
Network (SCN) authorisation including provision of assignment of spectrum
for both feeder link as well as user link under such authorisation.”
1.29 TRAI, in its response dated 13.08.202527 to the DoT’s back-reference dated
03.07.2025, expressed “its concern on the non-acceptance of its
recommendations on the Satellite-based Telecommunication Service
Authorisation.” TRAI also stated that “as the Government has not accepted
the TRAI’s recommendations on the Satellite-based Telecommunication
Service Authorisation, a regulatory gap would indeed be created in the
ecosystem for satellite communications in the country.” With respect to the
satellite communication network authorisation suggested by DoT, TRAI
conveyed to DoT as below:
“2.131.7 In this regard, the Authority has decided to initiate a fresh process
of consultation with stakeholders to solicit views on terms and conditions for
Satellite Communication Network (SCN) authorisation, including the provision
of assignment of spectrum for both feeder link as well as user link under such
authorisation. Upon the conclusion of the consultation process, the Authority
would provide its recommendations on the matter to the Government.
27 Response dated 13.08.2025: Response of TRAI to the Back-Reference dated 03.07.2025 on the Recommendations of TRAI on
the ‘Terms and Conditions of Network Authorisations to be Granted Under the Telecommunications Act, 2023’
[URL: https://trai.gov.in/sites/default/files/2025-07/TRAI_Response_04072025.pdf]
162.131.8 In case upon the conclusion of the consultation process, the
Authority recommends that the spectrum for feeder link and/ or user link
should be assigned under SCN Authorisation, the Government may thereafter,
if deemed fit, seek the recommendations of the Authority on the terms and
conditions for the assignment of spectrum under SCN Authorisation.”
1.30 Subsequently, DoT, through a letter dated 29.08.2025 (Annexure 1.3),
requested TRAI to provide recommendations on the terms and conditions of
the proposed Satellite Communication Network (SCN) authorisation, alongwith
terms and conditions relating to the assignment of spectrum in a consolidated
form, covering all aspects at once.
1.31 In this regard, TRAI through a letter dated 22.09.2025 requested DoT to
clarify as to whether the assignment of spectrum to ‘Satellite Communication
Network’ is covered under the First Schedule of the Telecommunications Act,
2023; and provide information on frequency bands in which spectrum is
envisaged to be assigned to the entities holding the proposed SCN
authorisation.
1.32 In response, DoT through a letter dated 07.10.202528 (Annexure 1.4),
provided its clarification on the relevant aspects. An extract from the DoT’s
letter dated 07.10.2025 is given below:
“2. … it is submitted that, the First Schedule of The Telecommunications Act,
2023, is a list of entries based on use of the spectrum. Where the use of the
spectrum is covered within the scope of an entry in the First Schedule, the
assignment of such spectrum may be undertaken by administrative process.
28 Letter dated 07.10.2025: DoT’s clarification letter to a letter from TRAI seeking clarification with respect to the Reference dated
29.08.2025.
172.1 An entity holding a SCN (Satellite Communication Network) authorisation
seeks assignment of spectrum for use that falls within the scope of any of the
entries of the First Schedule, it can be assigned spectrum through
administrative method. Accordingly, an SCN Authorised Entity seeking to use
spectrum for In-flight Maritime Connectivity, may apply for administrative
assignment under Entry 14 of the First Schedule. An SCN Authorised Entity
seeking to use spectrum for the satellite-based services under Entry 16, such
as Very Small Aperture Terminal, Global Mobile Personal Communication by
Satellites, National Long Distance, International Long Distance, Mobile
Satellite Services in L & S bands, can apply for spectrum assignment under
Entry 16.
2.2 It may also be possible that a SCN Authorised Entity without seeking
spectrum may enter into sharing agreements with another authorised entity
availing of its satellite network (the "partnering entity"), to utilise the spectrum
assigned to such partnering entity for the limited purpose of providing the
service of its satellite-based networks.
3. … at present, spectrum assignments for different kind of telecommunication
services are being made in the L, C, Ku and Ka bands. Also, based on the TRAI
recommendations dated 09.05.2025, other frequency bands i.e. Q-band and
V-band are also being considered for different kind of Telecommunications
Services.”
E. The Present Consultation Paper
1.33 In this context, the present consultation paper has been prepared to solicit
comments from stakeholders on ‘the Framework for Satellite Communication
Network Authorisation, and Assignment of Spectrum to Satellite
Communication Network Providers’. Chapter I provides the background
information. Chapter II examines the issues related to the proposed Satellite
18Communication Network (SCN) Authorisation framework and assignment of
spectrum. Chapter III examines the financial conditions of the proposed SCN
Authorisation, and spectrum charges. Chapter IV summarizes the issues for
consultation.
19CHAPTER II: EXAMINATION OF ISSUES RELATED TO
AUTHORISATION FRAMEWORK AND ASSIGNMENT OF
SPECTRUM
2.1 This chapter begins with a brief description of the evolution of the policy and
regulatory framework for telecommunication services, in general and satellite-
based telecommunication services, in particular. Thereafter, the chapter
examines the issues related to the terms and conditions of the proposed
satellite communication network authorisation and provision of assignment of
spectrum under such authorisation.
A. Evolution of the telecom policy and regulatory framework
2.2 In India, the first telegraph29 was installed in 1851 under the British rule.
Three decades later, in 1881, the telephone was introduced in India. In 1885,
the Imperial Legislative Council enacted a legislation on telecommunications
namely the Indian Telegraph Act, 1885. The Indian Telegraph Act, 1885
accorded to the Central Government an exclusive privilege of establishing,
maintaining, and working telegraph in India. The Indian Telegraph Act, 1885
also empowered the Central Government to grant a license to any person to
establish, maintain or work a telegraph within any part of India30.
29 "telegraph" means any appliance, instrument, material or apparatus used or capable of use for transmission or reception of
signs, signals, writing, images and sounds or intelligence of any nature by wire, visual or other electro-magnetic emissions, Radio
waves or Hertzian waves, galvanic, electric or magnetic means.
Source: Indian Telegraph Act,1885
30 A relevant extract from the Indian Telegraph Act, 1885 is reproduced below:
“4. Exclusive privilege in respect of telegraphs, and power to grant licenses.— (1) Within India, the Central Government shall
have the exclusive privilege of establishing, maintaining and working telegraphs:
Provided that the Central Government may grant a license, on such conditions and in consideration of such payments as it thinks
fit, to any person to establish, maintain or work a telegraph within any part of India: …”
202.3 At the time of independence, all foreign telecommunication companies were
nationalised.31 From 1947 to early 1990s, the Indian telecom sector remained
a state monopoly.32 In July 1992, the Government of India announced the
opening of the sub-sector of value-added services to private investment for
eight services viz. Electronic Mail, Voice Mail, Data Services, Audio Text
Services, Video Text Services, Video Conferencing, Radio Paging, and Cellular
Mobile Telephone. In May 1994, the Government of India announced National
Telecom Policy (NTP) 1994 with an objective of “telecommunication for all
and telecommunication within the reach of all”. NTP 1994 marked a pivotal
step in India’s telecommunications reform, laying the groundwork for
subsequent liberalization and rapid sectoral growth. Among many other
services, Very Small Aperture Terminal (VSAT) Service was opened to private
sector under NTP 1994. VSAT Service started being licensed as a value-added
service in 1994 to VSAT Service Providers for serving Closed User Groups
(CUGs).33
31 With the nationalization of telecommunication companies, the Government created the Posts and Telegraphs Department, a
state-run monopoly.
32 The 1980s witnessed the first attempts at restructuring of the administration and operation of telecommunications in the
country. In 1984, the Posts & Telegraphs Department was bifurcated into two separate Departments, viz., the Department of
Posts (DoP) and the Department of Telecommunications (DoT). In 1986, Videsh Sanchar Nigam Limited (VSNL) and Mahanagar
Telephone Nigam Limited (MTNL) were incorporated as public sector enterprises wholly owned by the Government under the
DoT. MTNL was established to provide telecommunication services in Delhi and Mumbai, and VSNL was established to provide
all international telecommunication services.
33 Very Small Aperture Terminals (VSATs) could be described as earth stations that share satellite resources among a large
number of similar terminals. Individual VSAT terminals typically have small aperture sizes, transmit at relatively low equivalent
isotropically radiated power (e.i.r.p.) levels, and use relatively small equipment that allows flexible installation of a satellite
network earth station directly at a wide variety of user locations and platforms.
Source: https://www.itu.int/dms_pub/itu-r/opb/rep/r-rep-s.2278-2013-pdf-e.pdf
Very Small Aperture Terminal (VSAT) is one of the satellite communication technologies, which is very useful for remote and
inaccessible locations (rural areas, ships, coastal regions, hills, etc) where there is limited or no terrestrial connectivity.
The main advantages of VSAT technology are its rapid deployment with minimum training, scalability, lower operational costs,
and reliability of communication, in remote locations even in adverse situations.
Source: https://eservices.dot.gov.in/satellite-telecom-network-captive-vsat
The VSAT network comprises of a space segment and a ground segment, which is accessed by the end users. The space
segment consists of transponder space in satellites. The ground segment consists of earth stations, hub, control centre, and
212.4 In March 1997, by an Act of the Parliament namely, the Telecom Regulatory
Authority of India Act, 1997, the Telcom Regulatory Authority of India (TRAI)
was established to regulate the telecommunications services in the country.
Through the Act, TRAI was given a range of regulatory and recommendatory
functions apart from the function of settling disputes between service
providers.34
2.5 In March 1999, the Government of India announced a new policy framework
named ‘New Telecom Policy 1999’. It stated that the new policy framework
must focus on creating an environment to enable continued attraction of
investment in the sector and allow creation of communication infrastructure
by leveraging on technological development; towards this end, the new policy
framework would look at the telecom services sector as follows:
(a) Cellular Mobile Service Providers (CMSPs), Fixed Service Providers (FSPs)
and Cable Service Providers, collectively referred to as’ Access Providers’
(b) Radio Paging Service Providers
(c) Public Mobile Radio Trunking Services (PMRTS) Providers
(d) National Long Distance Operators (NLDOs)
VSATs of the group of end users. The VSATs may, depending upon technology choice, connect into a hub station or connect
with each other in a mesh pattern. The hub station is linked to the satellite transponder as a nodal mechanism.
Source: https://trai.gov.in/sites/default/files/2024-09/28_1_0.pdf
Closed User Group (CUG): VSAT CUG license enables private communication networks using VSATs for companies with
widespread locations, like banks, schools, and retail chains.
Source: https://preprodeservices.dot.gov.in/commercial-vsat-cug
34 In March 2000, the Indian Parliament amended the TRAI Act. The salient features of the amendment are as below:
(a) Establishment of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) for adjudicating disputes between
licensor and licensees, between two or more service providers, and between a service provider and a group of consumers,
and to hear and decide appeals against any direction, decision or order of TRAI under the Act
(b) Introduction of a clear distinction between the regulatory functions and recommendatory functions of TRAI
(c) Making it mandatory for the Central Government to seek TRAI9s recommendations with respect to the need and timing for
introduction of a new service provider and the terms and conditions of license to a service provider
(d) Inclusion of the regulatory function of laying down the standard of quality of service to be provided by the service providers
and ensuring quality of service
(e) Inclusion of the regulatory function of fixing the terms and conditions of interconnectivity between the service providers
(f) Inclusion of the recommendatory function on efficient management of available spectrum.
22(e) International Long Distance Operators (ILDOs)
(f) Other Service Providers
(g) Global Mobile Personal Communication by Satellite (GMPCS) Service
Providers
(h) V-SAT Based Service Providers
2.6 The first five telecom service providers, included in the new policy framework
of NTP 1999, were related to terrestrial telecommunication services35. The
remaining two service providers viz. GMPCS Service Providers and V-SAT
Based Service Providers were related to satellite-based telecommunication
services36. In NTP 1999, the Government expressed, inter-alia, as below with
respect to satellite-based telecommunication services:
(a) The Government has opened the GMPCS market in India and has issued
a provisional license.37 GMPCS Service Providers shall be free to provide
voice and non-voice messages, data service and information services.
The terms of the final license would need to be finalized in consultation
with TRAI. The appropriate entry fee/ revenue sharing structure would
be recommended by TRAI.
(b) VSAT Service Providers will be granted a separate license on a non-
exclusive basis for an initial period of 20 years. They would be required
to pay a one-time entry fee and licence fee based on a revenue share.
The appropriate level of entry fee and percentage of revenue share
arrangement would be recommended by TRAI.
35 The term “terrestrial telecommunication services” means the telecommunication services provided by using telecommunication
networks that operate on or near the Earth's surface, relying on land-based infrastructure to transmit and receive signals.
36 The term “satellite-based telecommunication services” means the telecommunication services provided by using artificial
satellites to transmit and receive signals.
37 The first license for GMPCS was issued in October 1998 to M/s Iridium India Telecom Limited provisionally on a non-exclusive
basis. Iridium commissioned its GMPCS service in India in February 1999.
232.7 Through NTP 1999, the Government also recognized the need for Universal
Service Obligation (USO) in telecom services sector and stated that “[t]he
resources for meeting the USO would be raised through a 'universal access
levy' which would be a percentage of the revenue earned by all the operators
under various licences. The percentage of revenue share towards universal
access levy would be decided by the Government in consultation with TRAI.”38
2.8 After the announcement of NTP 1999, DoT sent a reference to TRAI for
seeking recommendations on the quantum and structure of License Fee and
other terms and conditions of license agreement for the provision of GMPCS
service. In this regard, TRAI, on 15.11.1999, sent its recommendations on
License Fee and Terms & Conditions of the License Agreement for GMPCS
Service39 to DoT. The salient recommendations were as below:
(a) The Entry Fee for GMPCS Service should be Rs. 10 million.
(b) The GMPCS Service Licensee shall be required to commission its
Applicable systems and provide GMPCS Service within a period of one
year of the effective date of the License Agreement.
(c) Revenue share as annual license fee under the GMPCS Service License
should not exceed 5% of the Adjusted Gross Revenue (AGR).
(d) The GMPCS Service License shall be issued for an initial period of 20
years and would be extendable by additional period of 10 years
thereafter.
38 Source: https://trai.gov.in/sites/default/files/2024-10/New_Telecom_Policy%201999.pdf
39 TRAI’s recommendations dated 05.09.2022 may be accessed at the following URL:
https://trai.gov.in/sites/default/files/2024-09/RecommendationGMPCS15111999.pdf
242.9 In its response to DoT’s back-reference on TRAI’s recommendations dated
15.11.1999, TRAI recommended the following definition of GMPCS Service
Provider:
“GMPCS Service Provider means an Indian registered Company that has been
licensed under the license to set up and operate Gateways, network
operations and other terrestrial facilities to provide the GMPCS service (as
defined by ITU40) to the public within the boundaries of Indian Union.”
2.10 Based on the afore-mentioned recommendations, DoT, in 2001, finalized the
GMPCS policy and issued detailed guidelines and license agreement for the
provision of satellite telephone service in the country.
2.11 In May 1999, DoT sought recommendations on issue of fresh licenses for
VSAT Service Providers under NTP 1999. In this regard, TRAI, on 18.10.2000,
sent its recommendations on Fresh Licenses for VSAT Service41 to DoT. The
salient recommendations were as below:
(a) Entry Fee for VSAT license should be Rs. 3 million.
(b) There should be a minimum roll out obligation on VSAT licensee to
deploy five VSAT terminals along with the hub within one year of the
grant of license.
(c) License fee should be charged on the basis of per VSAT rather than as
a revenue share.
License Fee for VSAT service for 64 kbps:
40 As per ITU, “GMPCS is a personal communication system providing transnational, regional or global coverage from a
constellation of satellites accessible with small and easily transportable terminals. Whether the GMPCS satellite systems are
geostationary or non-geostationary, fixed or mobile, broadband or narrowband, global or regional, they are capable of
providing telecommunication services directly to end users. GMPCS services include two-way voice, fax, messaging, data and
even broadband multimedia”.
Source: https://www.itu.int/en/gmpcs/Pages/default.aspx
41 TRAI’s recommendations dated 18.10.2000 may be accessed at the following URL:
https://trai.gov.in/sites/default/files/2024-09/RecommendationGMPCS15111999.pdf
25(i) 1 to 500 VSATs: Rs. 20,000 per VSAT per annum
(ii) 501 to 1,000 VSATs: Rs. 15,000 per VSAT per annum
(iii) Above 1,000 VSATs: Rs. 10,000 per VSAT per annum
Surcharge on the license fee leviable per VSAT per annum:
(i) Above 64 kbps and upto 128 kbps: Rs. 10,000
(ii) Above 128 Kbps and upto 384 Kbps: Rs. 20,000
(iii) Above 384 Kbps and up to 512 Kbps: Rs. 50,000.
2.12 Based on TRAI’s recommendations dated 18.10.2000, DoT granted licenses
to applicants to establish, install, operate and maintain VSAT Closed Users
Group (CUG) Domestic Data Network service via INSAT Satellite System on
non-exclusive basis within territorial boundary of India. CUG VSAT licenses
were of two types viz. (a) Commercial CUG VSAT license, and (b) Captive CUG
VSAT license. A commercial CUG VSAT service licensee could offer the service
on commercial basis to its subscribers by setting up a number of CUGs. A
captive CUG VSAT licensee could setup only one CUG for its captive use.
2.13 In pursuance of the objectives of NTP 1999, DoT, through its letters dated
21.05.1999 and 13.10.1999 sought TRAI’s recommendations on, inter-alia,
the class of operators to fund the Universal Access Levy (UAL) and percentage
contribution from revenue of the operators. In this regard, TRAI, on
03.10.2001, sent its recommendations on Universal Service Obligations. TRAI
recommended a Universal Service Levy (USL) amounting to 5% of the
Adjusted Gross Revenue (AGR) of all telecom carriers or operators such as
Basic Service Operators (BSOs), National Long Distance Operators (NLDOs),
International Long Distance Operators (ILDOs), Cellular Mobile Service
26Providers (CMSPs) etc.42 After considering TRAI’s recommendations dated
03.10.2001, Universal Service Obligation Fund (USOF) was established
through the Indian Telegraph (Amendment) Act, 200343. The USO Levy
amounting to 5% of AGR was included in the License Fee.
2.14 Based on a request from DoT for providing recommendations on the terms
and conditions for the INSAT MSS (Mobile Satellite System) Reporting Service,
TRAI, on 19.11.2001, sent its recommendations on INSAT MSS Reporting
Service44. INSAT MSS Reporting Service is a one-way (transmit only) satellite-
based messaging service available through INSAT. Through the
recommendations dated 19.11.2001, TRAI recommended, inter-alia, as
below:
(a) INSAT MSS Reporting Service may be treated as a new service under the
broad definition of ‘Value Added Service’, considering the type of
communication, frequency spectrum, configuration of hub station
equipment and handset.
(b) As the service is new and the market is likely to take some time to pick
up, no entry fee be charged for this service and the license fee be kept
as 5% of the Adjusted Gross Revenue, which shall go towards the USO.
(c) To exclude non-serious players, a bank guarantee of Rs 2 lakh be charged
from the service provider to be encashed in case he fails to start the
service within six months of award of license.
42 Through the recommendations dated 03.10.2001, TRAI also recommended that “[n]o levy should be charged from pure value
added service providers such as ISPs, E-mail, Voice Mail service providers etc., who do not own facilities and thus are not in
the category of network operators and carriers.”
43 The amendment Act was deemed to have come into force on 01.04.2002.
44 TRAI’s recommendations dated 19.11.2001 may be accessed at the following URL:
https://trai.gov.in/sites/default/files/2024-09/RecomendationINSATMSS19112001.pdf
272.15 Based on the recommendations dated 19.11.2001, DoT introduced the INSAT
MSS-R License in the year 2002.
2.16 On 13.01.2005, TRAI sent its suo motu recommendations on Unified
Licensing. TRAI recommended that “Unified Licensing Regime should be
introduced in India. This is also in line with the prevalent international
practices, which is to move towards simplified Authorisation/ Converged
licenses. Unified Licensing regime would enable the provision of various
services, both existing and new, by the service providers without the need for
separate additional licenses, with the same media being used for different
services which would build economies of scale and scope. As a result, better
services would be made available to the consumers at cheaper price.” TRAI
also recommended a telecom service licensing framework as below:
“There shall be four categories of licenses:
▪ Unified License - All Public networks including switched networks
irrespective of media and technology capable of offering voice and/ or
non-voice (data services) including Internet Telephony, Cable Television
(TV), Direct To Home (DTH), TV & Radio Broadcasting shall be covered
under this category. Unified License implies that a customer can get all
types of telecom services, from a Unified License Operator. The operator
can use wireline or wireless media.
▪ Class License - All services including satellite services, which do not have
both way connectivity with Public Network, shall be covered under Class
license. This category excludes Radio Paging and Public Mobile Radio
Trunking Systems (PMRTS) Services and includes Niche Operators.
▪ Licensing through Authorisation - This category will cover the services
for provision of passive infrastructure and bandwidth services to service
provider(s), Radio Paging, PMRTS, Voice Mail, Audiotex, Video
Conferencing, Videotex, E-mail service, Unified Messaging Services,
28Tele-banking, Tele-medicine, Tele-education, Tele-trading, E-
commerce, Other Service Providers, as mentioned in NTP’99 and
Internet Services including existing restricted Internet Telephony
(Personal Computers (PC) to PC; within or outside India, PC in India to
Telephone outside India, IP based H.323/SIP Terminals connected
directly to ISP nodes to similar Terminals; within or outside India), but
not Internet Telephony in general.
▪ Standalone Broadcasting and Cable TV licence – This category shall
cover those service providers who wish to offer only broadcasting and/or
cable services.”
2.17 Based on a request from DoT to provide recommendations on allocation of
access spectrum and pricing, TRAI, through its recommendations on
Spectrum Management and Licensing Framework dated 11.05.2010,
recommended that “[a]ll future licences should be unified licences and that
spectrum be delinked from the licence.” In this regard, the Ministry of
Communications, Government of India, on 15.02.2012, issued a press
statement and conveyed the decisions taken by DoT after considering TRAI’s
recommendations dated 11.05.2010. A relevant extract from the press
statement dated 15.02.2012 is given below:
“All future licences will be Unified Licences and allocation of spectrum will be
delinked from the licence. Spectrum, if required, will have to be obtained
separately.
A final view on implementation of the Unified License Regime would be taken
after receipt of detailed Guidelines and Terms & Conditions from TRAI for
Unified Licence including migration path for all existing licence(s) to Unified
Licence.
29There will be uniform licence fee across all telecom licenses and service areas
which will progressively be made equal to 8% of the Adjusted Gross Revenue
(AGR) in two yearly steps starting from 2012-13.”
2.18 Meanwhile, DoT, through its letter dated 10.11.2011, requested TRAI to
recommend the Unified Licence guidelines including recommendations on
entry/ eligibility, PBG, FBG etc. In this regard, TRAI, on 16.04.2012, sent its
recommendations on Guidelines for Unified Licence/ Class Licence and
Migration of Existing Licences to DoT. The salient features of the
recommendations were as below:
(a) Unified License: Under Unified License, a licensee may provide access
service, internet service, NLD, ILD, PMRTS, radio paging, voice mail,
Audiotex, Videotex, Unified Messaging Service, resale of International
Private Leased Circuit (IPLC) and GMPCS service. A Unified License
holder may offer any/ all services covered under ‘Class License’ and
‘Licensing through authorisation’ but not vice versa.
(b) Class License: VSAT service and INSAT-MSS service will be covered
under Class License.
(c) Licensing through authorisation: Licensee shall be permitted to offer
Voice Mail Service, Audiotex, Videotex, Unified Messaging Service and
other value-added services within its licence area using the network of
Unified Licensee on mutually agreed terms and conditions. The Licensee
shall be permitted to install dark fibers, duct space and towers, subject
to the condition that these shall not be used for activities relating to
commercial telecom services.
2.19 On 31.05.2012, the Government of India announced a new policy framework
named ‘National Telecom Policy (NTP) 2012’. One of the objectives of NTP
302012 was “Strive to create One nation - One license” across services and
service areas.
2.20 After considering TRAI’s recommendations dated 16.04.2012, DoT, in 2013,
introduced the Unified Licensing regime. Under Unified Licensing regime, an
applicant could apply for Unified License alongwith authorisations for one or
more services listed under Unified License. In effect, the Unified Licensing
regime allowed any eligible entity to provide multiple services — such as
access services, internet service, national long-distance (NLD) service,
international long-distance (ILD) service etc. — under one consolidated
license, instead of holding separate licenses for each service. Notably, when
an entity obtained a Unified License, it did not automatically get authorization
for all telecommunication services listed under it. Instead, the Unified License
acted as a framework license within which, the operators could seek separate
authorizations for each service they want to provide.
2.21 As far as satellite-based telecommunication services are concerned, not only
GMPCS service, but also commercial CUG VSAT service, and INSAT MSS-R
service were brought under the Unified License regime.45 Besides, Chapter-V
(Operating Conditions) of the Unified License contained the following
provision on the use of satellite media:
30.11 In case of provision of services by the LICENSEE through the Satellite
media or use of satellite media through owned/leased satellite connectivity:-
45 The captive CUG VSAT services continued to be provided under the standalone Captive VSAT CUG license.
31(i) The Licensee shall abide by the prevalent Government guidelines, policy,
orders, regulation or direction on the subject like Satellite communication
policy, VSAT policy etc.
(ii) Before putting in operation the network for Satellite based services,
necessary clearances from INSAT Network Operations Control Center (NOCC)
on payment of prescribed charges will be taken by the Licensee. NOCC
instructions with regard to space segment access and other relevant
operational matters will have to be complied by the Licensee.
(iii) For use of space segment and setting up and to start operating the Earth
Station etc., Licensee shall directly coordinate with and obtain clearance from
Network Operations Control Centre (NOCC), apart from obtaining SACFA
clearance and clearance from other authorities.
(iv) Mandatory performance verification of HUB Station will be carried out by
NOCC or any other agency authorized by the Authority for this purpose on
payment of necessary testing charges by Licensee.
(v) For VSATs supplied or leased by the Licensee, a certificate from the
LICENSEE duly supported by the manufacturer certificate meeting the
mandatory performance requirements shall be submitted by the LICENSEE to
NOCC. Mandatory performance verification of VSATs will be carried out by
NOCC on selective basis on payment of necessary testing charges by Licensee.
(vi) The Licensee shall submit a monthly operational report to NOCC/Satellite
cell in DoT in both soft copy and hard copy.”
2.22 On 10.08.2017, DoT sent a reference to TRAI for seeking recommendations
on licensing terms and conditions for the provision of In-Flight Connectivity
for voice, data, and video services. In response, TRAI sent its
recommendations dated 18.01.2018 on In-Flight Connectivity (IFC)46 to DoT.
46 The recommendations dated 18.01.2018 on In-Flight Connectivity (IFC) may be accessed at the following URL:
32Through the recommendations dated 18.01.2018, TRAI recommended, inter-
alia, as below:
(a) Both, Internet, and Mobile Communication on Aircraft (MCA) service
should be permitted as In-Flight Connectivity (IFC) in the Indian
airspace.
(b) A separate category of “IFC Service Provider” should be created to
permit IFC services in Indian airspace for airlines registered in India.
(c) An IFC service provider should be permitted to provide IFC services,
after entering into an arrangement with Unified Licensee having
appropriate authorization.
(d) To promote the adoption of IFC services in Indian airspace, the IFC
service provider should be imposed a flat annual Licence Fee of token
amount of Rs. 1.
2.23 After considering TRAI’s recommendations dated 18.01.2018 on In-Flight
Connectivity, DoT issued the Flight and Maritime Connectivity Rules, 2018
dated 14.12.2018. Through the rules dated 14.12.2018, DoT notified rules for
the authorisation to provide “In Flight and Maritime Connectivity (IFMC)
service”. As per the rules, the IFMC service provider, shall establish, maintain,
and work telegraph to provide wireless voice or data or both type of telegraph
messages on ships within Indian territorial waters and on aircraft within or
above India or Indian territorial waters.47
https://trai.gov.in/sites/default/files/2024-09/Recommendation_IFC_19012018.pdf
47 The eligibility conditions for obtaining the authorisation of IFMC service is as below:
Eligibility.–
(1) A licensee shall be eligible to apply for authorisation to provide IFMC service if it –
(a) holds a license for access service or an ISP category A license; and
(b) holds an NLD license or a commercial VSAT CUG service license, and has satellite gateway earth station within the service
area of the license as specified in clause (a), in case connectivity through satellite is used.
(2) The following companies shall also be eligible to apply for authorisation to provide IFMC service by entering into commercial
agreements as referred to in sub-rule (5) and (6), namely:-
(a) any Indian airlines company or foreign airlines company having permission to enter Indian airspace by the Directorate
General of Civil Aviation;
332.24 Meanwhile, the Government of India issued a new policy framework named
‘National Digital Communication Policy (NDCP) 2018’. With respect to satellite
communications, NDCP 2018 has the following strategy under its Connect
India Mission:
“1.3 Strengthening Satellite Communication Technologies in India
(a) Review the regulatory regime for satellite communication technologies,
including: Revising licensing and regulatory conditions that limit the use
of satellite communications, such as speed barriers, band allocation, etc.
i. Simplifying compliance requirements for VSAT operators to ensure
faster roll out
ii. Expanding scope of permissible services for the effective utilisation
of High Throughput Satellite systems through appropriate licensing
mechanism.
(b) Optimise Satellite communications technologies in India, by:
i. Reviewing SATCOM policy for communication services, along with
Department of Space, to create a flexible, technology-neutral and
competitive regime, keeping in view international developments
and social and economic needs of the country
(b) any Indian shipping company or foreign shipping company whose vessels or ships call Indian ports or transit Indian
territorial waters and intend to carry out communication for non-GMDSS (Global Maritime Distress and Safety System) [routine]
or for commercial purpose; and
(c) any company incorporated under the Companies Act, 2013 (18 of 2013) or under any previous company law.
(3) A licensee referred to in sub-rule (1), may provide voice or data or both services in accordance with the scope of the
license, held by it.
(4) Data service may be provided by the IFMC service provider through Wi-Fi.
(5) For providing data service, the companies referred to in sub-rule (2), shall enter into a commercial agreement with at least
one licensee of – (a) access service or ISP category A; and (b) commercial VSAT CUG service or NLD service, having satellite
gateway earth station within the service area of partnering licensee as referred to in clause (a), in case connectivity through
satellite is used.
(6) For providing voice and data service, the companies referred to in sub-rule (2), shall enter into a commercial agreement
with at least one licensee of – (a) access service; and (b) commercial VSAT CUG service or NLD service, having satellite
gateway earth station within the service area of partnering licensee of access service, in case connectivity through satellite is
used.
Source: https://eservices.dot.gov.in/sites/default/files/circular-notifications/IFMC%2014.12.2018.pdf
34ii. Making available new spectrum bands (such as Ka Band) for
satellite based commercial communication services.
iii. Rationalizing satellite transponder, spectrum charges and charges
payable to WPC
iv. Assessing the bandwidth demands across various spectrum bands
used for satellite communications, in consultation with
stakeholders
v. Prioritising international engagement with ITU on spectrum
management issues, including satellite communications in India.
(c) Develop an ecosystem for satellite communications in India, with focus
on:
i. Streamlining administrative processes for assignment and
allocations, clearances and permissions related to satellite
communication systems
ii. Promoting local manufacturing and development of satellite
communications related infrastructure through appropriate policies
iii. Promoting participation of private players, with due regard to
national security and sovereignty.”
2.25 Based on the DoT’s reference dated 13.08.2019, TRAI, on 28.07.2020, sent
its recommendations on ‘Provision of Cellular Backhaul Connectivity via
Satellite Through VSAT Under Commercial VSAT CUG Service Authorization’48
to DoT. Through these recommendations, TRAI recommended, inter-alia, that
the Commercial VSAT CUG Service provider should be permitted to provide
backhaul connectivity for cellular mobile services through satellite using VSAT
48 The recommendations dated 28.07.2020 on ‘Provision of Cellular Backhaul Connectivity via Satellite Through VSAT Under
Commercial VSAT CUG Service Authorization’ may be accessed at the following URL:
https://trai.gov.in/sites/default/files/2024-09/Recommendations_28072020.pdf
35to the Access Service providers; they may also be permitted to provide
backhaul connectivity using VSAT to Access Service Providers for establishing
Wi-Fi hotspots.
2.26 Based on the DoT’s reference dated 23.11.2020, TRAI, on 26.08.2021, sent
its recommendations on Licensing Framework for Satellite-based connectivity
for Low Bit Rate Applications49. Through the recommendations dated
26.08.2021, TRAI recommended, inter-alia, as below:
(a) The GMPCS service authorization under Unified License permits the
licensee to provide voice and non-voice messages and data services.
Under the scope of data services, the licensee may provide satellite-
based data connectivity to the SIM-based IoT/ Aggregator devices.
Scope of GMPCS service authorization under Unified License may be
suitably amended to include provision of satellite-based low-bit-rate
connectivity for IoT devices.
(b) The Commercial VSAT CUG service authorization under Unified License
permits the licensee to provide data connectivity between various sites
scattered within territorial boundary of India. Under the scope, the
licensee may be permitted to provide data connectivity for IoT devices
also through satellite. Scope of Commercial VSAT CUG service
authorization under Unified License may be suitably amended to include
provision of satellite-based low bit-rate connectivity for IoT devices.
(c) The scope of the Captive VSAT CUG service license is to provide data
connectivity between various sites scattered throughout India using Very
Small Aperture Terminals. Under the scope, the licensee may be
49 The recommendations dated 26.08.2021, on Licensing Framework for Satellite-based connectivity for Low Bit Rate Applications
may be accessed at the following URL:
https://trai.gov.in/sites/default/files/2024-09/Recommendations_26082021.pdf
36permitted to use data connectivity for IoT devices also, through satellite.
Scope of Captive VSAT CUG service license may be suitably amended to
include provision of satellite-based low-bit-rate connectivity for IoT
devices to be used only for internal communication and non-commercial
purposes, i.e., for captive use only.
(d) The scope of INSAT MSS-R service authorization is to provide INSAT
Mobile Satellite System Reporting service, which is a one-way Satellite
based messaging service available through INSAT. As the service is not
in operation and many technological developments have taken place in
the field of satellite communication, DoT may consider closing this
authorization.
(e) The NLD service authorization under Unified License permits the licensee
to inter alia provide the Leased Circuit services using wireline/wireless
media, including satellite media. Scope of NLD service authorization may
be suitably amended to include provision of satellite-based low-bit-rate
connectivity for IoT devices.
2.27 After considering TRAI’s recommendations dated 26.08.2021, DoT, on
06.05.2022, amended the relevant licenses/ authorisations to permit satellite-
based connectivity for low bit rate applications, as outlined below:
(a) Amendment under GMPCS Service Authorisation: The licensee may also
provide satellite-based data connectivity to the IoT devices/ Aggregator
devices.
(b) Amendment under Commercial VSAT Service Authorisation: VSAT
terminal may also be used to aggregate the traffic from M2M/ IoT
devices/aggregator devices.
(c) Amendment under Captive VSAT Service Authorisation: VSAT terminal
may also be used to aggregate the traffic from M2M/ IoT devices as long
as the CUG nature of the network is not violated.
372.28 In October 2022, DoT, in its publication titled ‘Satellite Reforms 2022’, stated
that “[s]atellite based communication services can be provided within the
respective scope of the following licenses/ authorizations issued under Section
4 of the Indian Telegraph Act, 1885:
(i) Global Mobile Personal Communication by Satellite (GMPCS) Service
authorization under Unified License
(ii) VSAT CUG Service authorization under Unified License for commercial
service
(iii) In-Flight and Maritime Connectivity (IFMC) Service authorization
(iv) Captive VSAT CUG license
(v) National Long Distance (NLD) Service authorization under Unified
License.
Besides the above, satellite-based connectivity can also be provided under
other authorizations of the Unified License, viz. Access Service as per the
scope of the respective license.”
2.29 In December 2023, the Indian Parliament enacted the Telecommunications
Act, 2023’ (hereinafter, also referred to as the “Act”). The Act amends and
consolidates the law relating to development, expansion and operation of
telecommunication services and telecommunication networks, assignment of
spectrum, and for matters connected therewith or incidental thereto. A
relevant extract from Section 3 of the Telecommunications Act, 2023, which
grants the Central Government the power of authorisation, is reproduced
below:
“3 (1) Any person intending to —
(a) provide telecommunication services;
(b) establish, operate, maintain or expand telecommunication network; or
(c) possess radio equipment,
38shall obtain an authorisation from the Central Government, subject to such
terms and conditions, including fees or charges, as may be prescribed.
(2) The Central Government may while making rules under sub-section (1)
provide for different terms and conditions of authorisation for different types
of telecommunication services, telecommunication network or radio
equipment.
2.30 The relevant terms defined in Section 2 of the Telecommunications Act, 2023
are reproduced below:
(p) "telecommunication" means transmission, emission or reception of any
messages, by wire, radio, optical or other electro-magnetic systems, whether
or not such messages have been subjected to rearrangement, computation
or other processes by any means in the course of their transmission, emission
or reception;
(q) "telecommunication equipment" means any equipment, appliance,
instrument, device, radio station, radio equipment, material, apparatus, or
user equipment, that may be or is being used for telecommunication,
including software and intelligence integral to such telecommunication
equipment; and excludes such equipment as may be notified by the Central
Government;
(s) "telecommunication network" means a system or series of systems of
telecommunication equipment or infrastructure, including terrestrial or
satellite networks or submarine networks, or a combination of such networks,
used or intended to be used for providing telecommunication services, but
does not include such telecommunication equipment as notified by the Central
Government;
(t) "telecommunication service" means any service for telecommunication;
39(u) "user" means a natural or legal person using or requesting a
telecommunication service, but does not include person providing such
telecommunication service or telecommunication network.”
2.31 As outlined in Chapter I of this consultation paper, DoT, through two separate
references50, requested TRAI to provide recommendations on the terms and
conditions for the authorisations to (a) provide telecommunication services;
and (b) establish, operate, maintain or expand telecommunication network
under the Telecommunications Act, 2023. In this regard, after consultation
with stakeholders, TRAI sent the following recommendations to DoT:
(a) Recommendations dated 18.09.2024 on the Framework for Service
Authorisations to be Granted Under the Telecommunications Act, 2023;
and
(b) Recommendations dated 17.02.2025 on the Terms and Conditions of
Network Authorisations to be Granted Under the Telecommunications
Act, 2023.
2.32 After considering TRAI’s recommendations dated 18.09.2024 on the
Framework for Service Authorisations to be Granted Under the
Telecommunications Act, 2023, DoT, in September 2025, issued the following
draft rules under Section 3(1)(a) of the Telecommunications Act, 202351 for
seeking objections or suggestions of stakeholders:
(a) Draft of the Telecommunication (Authorisation for Provision of Main
Telecommunication Services) Rules, 2025 issued on 05.09.202552;
50 DoT’s reference dated 21.06.2024 on service authorisations, and DoT’s reference dated 26.07.2024 on network authorisations
51 Read with Section 56 (2)(a) of the Telecommunications Act, 2023
52 Source: Draft of the Telecommunication (Authorisation for Provision of Main Telecommunication Services) Rules, 2025
40(b) Draft of the Telecommunication (Authorisation for Provision of
Miscellaneous Telecommunication Services) Rules, 2025 issued on
09.09.202553; and
(c) Draft of the Telecommunication (Authorisation for Provision of Captive
Telecommunication Services) Rules, 2025 issued on 10.09.202554.
2.33 In the draft rules, DoT included the following authorisations under ‘Main’,
‘Miscellaneous’ and ‘Captive’ Telecommunication Services:
Main Miscellaneous Captive
Telecommunication Telecommunication Telecommunication
Services Services Services
Authorisations Authorisations Authorisations
Unified Service Public Mobile Radio Captive Mobile Radio
Authorisation Trunking Service Trunking Service
(PMRTS) Authorisation (CMRTS) Authorisation
Access Service Enterprise Captive Non-Public
Authorisation Communication Service Network (CNPN) Service
Authorisation Authorisation
Internet Service Machine to Machine Captive VSAT Service
Authorisation (M2M) Service Authorisation
Authorisation
Long Distance Service PM-WANI service Captive General Service
Authorisation authorisation Authorisation
53 Source: Draft of the Telecommunication (Authorisation for Provision of Miscellaneous Telecommunication Services) Rules,
2025
54 Source: Draft of the Telecommunication (Authorisation for Provision of Captive Telecommunication Services) Rules, 2025
41In-Flight and Maritime
Connectivity (IFMC)
service authorisation
Aeronautical Data
Communication Service
Authorisation
International SIM service
authorisation
2.34 The draft of the Telecommunication (Authorisation for Provision of Main
Telecommunication Services) Rules, 2025 provides that an authorisation for
main telecommunication services may be granted for providing relevant
services as a network service operator (NSO) or virtual network operator
(VNO).55 The draft rules also provide that a VNO may enter into mutual
agreements with one or more parent NSOs as specified in the following table:
Table 2.1: Permissible Agreements between NSOs with VNOs
S.
VNO NSO
No.
Authorisation for
1. Authorisation for Unified Service
Unified Service
Authorisation for Unified Service,
Authorisation for
2. Authorisation for Access Service, or
Access Service
License for Access Service
55 The draft of the Telecommunication (Authorisation for Provision of Main Telecommunication Services) Rules, 2025 provides
the following definitions of the terms ‘NSO’ and ‘VNO’:
“network service operator” or “NSO” means an authorised entity or licensee providing telecommunication service by
establishing, operating, maintaining, or expanding telecommunication network for the relevant telecommunication service;
“virtual network operator” or “VNO” means an authorised entity or licensee providing telecommunication service by entering
into mutual agreement with a parent NSO which may provide for: (a) connecting its telecommunication equipment or system
to the telecommunication network of such NSO, or (b) using the telecommunication network of such NSO;
42S.
VNO NSO
No.
Authorisation for Authorisation for Unified Service,
3. Wireline Access Authorisation for Access Service, or
Service License for Access Service
Authorisation for Unified Service,
Authorisation for Access Service,
Authorisation for
4. Authorisation for Internet Service,
Internet Service
License for Access Service, or
License for Internet Service
Authorisation for Authorisation for Unified Service,
5. Long Distance Authorisation for Long Distance Service, or
Service License for NLD or ILD Service
2.35 Under the draft of the Telecommunication (Authorisation for Provision of Main
Telecommunication Services) Rules, 2025, DoT included a chapter on ‘Specific
Conditions for Provision of Telecommunication Services Using Satellite
System’. The content of the said chapter has been included in para 2.51
below.
2.36 After considering TRAI’s recommendations dated 17.02.2025 on the Terms
and Conditions of Network Authorisations to be Granted Under the
Telecommunications Act, 2023, DoT, on 09.10.2025, issued the Draft of the
Telecommunications (Authorisation for Telecommunication Network) Rules,
2025 under Section 3(1)(b) of the Telecommunications Act, 2023 for seeking
objections or suggestions of stakeholders. In the draft rules, DoT included the
following authorisations:
(a) Infrastructure Provider (IP) authorisation,
(b) Digital Connectivity Infrastructure Provider (DCIP) authorisation,
(c) Internet Exchange Point (IXP) provider authorisation,
(d) Satellite Earth Station Gateway (SESG) provider authorisation,
43(e) Cloud-hosted Telecommunication Network (CTN) provider authorisation,
and
(f) Mobile Number Portability (MNP) provider authorisation.
2.37 An extract from the scope of authorisation under various services
authorisations and network authorisations proposed by DoT through the draft
rules is enclosed as Annexure 2.1.
B. Proposed Satellite Communication Network Authorisation
2.38 As outlined in Chapter I of this consultation paper, DoT has requested TRAI
to provide recommendations on the terms and conditions of Satellite
Communication Network (SCN) authorisation under Section 3(1)(b) of the
Telecommunications Act, 2023 including provision of assignment of spectrum
for both feeder link as well as user link under such authorisation. With respect
to the need for such an authorisation, DoT has conveyed, inter-alia, as below:
(a) Keeping in view the increasing use of NTN (Non terrestrial networks)
including satellite communication networks in provisioning of FSS (Fixed
Satellite Services) including VSAT services and MSS (Mobile Satellite
Services), TRAI may consider an authorisation for satellite
communication network under Section 3(1)(b) of the
Telecommunications Act, 2023.56
(b) SCN authorisation under section 3(1)(b) will enable the relevant
authorised entities under Section 3(1)(a), in mutual commercial
agreement with the SCN authorised entities, to provide supplemental
56 Conveyed by DoT through the supplementary reference dated 17.10.2024
44coverage from space using Mobile Satellite Service (MSS) spectrum
bands to the users in areas with limited or no terrestrial coverage. 57
2.39 Essentially, DoT has envisaged that the entities holding the proposed Satellite
Communication Network (SCN) authorisation under Section 3(1)(b) of the
Telecommunications Act, 2023 would provide SCN-as-a-Service (SCNaaS) to
the entities holding authorisations under Section 3(1)(a) of the
Telecommunications Act, 2023. In general, a satellite communication network
is required to be established for the provision of satellite-based
communication services. With the introduction of the SCN authorisation
proposed by DoT, service providers would be able to provide satellite-based
communication services by utilizing the satellite communication network
established by the SCN authorised entity.
2.40 At its core, a satellite communication network is a system that utilizes
satellites in space to enable communication. As outlined in Chapter I of this
consultation paper, a satellite communication network comprises three main
segments: the space segment, the ground segment, the user segment. The
following figure depicts the architecture of satellite communication networks.
57 Conveyed by DoT through the back-reference dated 03.07.2025 to TRAI’s recommendations dated 17.02.2025
45Figure 2.1: The architecture of Satellite Communication Networks58
2.41 The space segment contains one or more satellites and is the centrepiece of
the communication network. It is equipped with transponders, antennas, and
other subsystems necessary for signal reception, processing, and
retransmission. The satellite generally acts as a relay station, receiving signals
from user terminals, amplifying them, and retransmitting them back to the
ground. Satellites can be positioned in different orbits, depending on the
coverage and performance requirements of the network. The ground segment
includes the Earth stations59 and operational centres that monitor, control,
and manage the satellite operations. The user segment consists of the user
terminals, which are the devices used by end-users to communicate with the
satellite. These terminals can be fixed60 such as VSATs, or mobile such as
58 Source: https://spacerepublic.eu/satcom-architecture/
59 According to the International Telecommunication Union (ITU) Radio Regulations, an Earth Station is a station located on the
Earth's surface or within the major portion of the atmosphere, designed to communicate with space stations (satellites) or
with other earth stations via reflecting satellites
60 As per the extant policy regime in India, user terminal stations on moving platforms are also permitted for provisioning of
connectivity subject to compliance to relevant TEC standard(s) and conditions mentioned therein.
Source: Unified License Agreement
46satellite phones. User terminals transmit and receive signals to establish
communication links with the satellite.61
2.42 In short, a satellite communication network could be visualised as a careful
orchestration of satellite resources, gateway earth station, and satellite
spectrum. International Telecommunication Union (ITU), in its
recommendation No. ITU-R S.1711-162 has depicted two network topologies
of satellite communication networks viz. mesh topology, and star topology as
outlined below:
(a) Mesh topology: In mesh topology, any pair of earth stations can be
connected directly via satellite.63
(b) Star topology: In star topology, signals from various remote users
connect to a gateway earth station which in turn connects to terrestrial
network.
2.43 In the afore-mentioned recommendation, ITU has depicted the mesh and star
topologies through the following figures:
Community 1 Community N
1711-03
Figure 2.2: Mesh Topology
61 Source: https://spacerepublic.eu/satcom-architecture/
62 Source: https://www.itu.int/dms_pubrec/itu-r/rec/s/R-REC-S.1711-1-201001-I!!PDF-E.pdf
63 In mesh topology, earth stations can communicate without a gateway earth station, but gateways are still used when the
network must connect to external terrestrial systems.
47Community N
CCC NN
Community 1
CCC
Internet
backbone
1711-02
Figure 2.3: Star Topology
2.44 The star topology is the most used topology in satellite communication
networks. This topology makes use of a gateway earth station for making a
connection between two user earth stations. The gateway earth station also
acts as the bridge linking the space-based communication network to
terrestrial communication networks.
2.45 Prima facie, the satellite communication network authorisation, envisaged by
DoT, would enable an entity to perform, inter-alia, the following activities:
(a) The authorised entity may obtain the necessary satellite resources (such
as transponder bandwidth) from an authorised satellite operator64.
(b) The authorised entity may establish gateway earth station(s) to
communicate with the satellite.
(c) For establishing gateway links [for communication between gateway
earth stations and satellite(s)] and user links [for communication
between user earth stations and satellite(s)] in its satellite
64 The satellite operator should have obtained permission from IN-SPACe to enable provisioning of its capacity in India for
providing communication services. [URL: https://www.inspace.gov.in/inspace?id=inspace_authorizations]
48communication network, the authorised entity may seek assignment of
spectrum65 from the Central Government.
Alternatively, the authorised entity may enter into an agreement with a
service authorised entity, desirous of availing its satellite communication
network (“the partnering entity”) to utilize the spectrum assigned to such
partnering entity for the limited purpose of providing Satellite
Communication Network as a Service (SCNaaS) to the partnering entity.
(d) The authorised entity may provide SCNaaS to authorised service
providers on commercial terms. For this purpose, the authorised entity
may provide an interface to authorised service providers to enable them
to utilize its satellite communication network.
(e) Under the SCN authorisation, the authorised entity may not provide
telecommunication services directly to users66.
2.46 At present, in India, for the provision of satellite-based telecommunication
services, the service providers are required to deploy ground-based satellite
communication networks by themselves. Prima facie, the introduction of the
proposed satellite communication network under Section 3(1)(b) of the
Telecommunications Act, 2023 may obviate the need for establishing satellite
communication network by service providers. It would functionally delink the
service and network layers by allowing service providers to operate at the
65 A relevant extract of Section 4 of the Telecommunications Act, 2023 is given below:
4. (1) The Central Government, being the owner of the spectrum on behalf of the people, shall assign the spectrum in
accordance with this Act, and may notify a National Frequency Allocation Plan from time to time.
(2) Any person intending to use spectrum shall require an assignment from the Central Government.
(3) The Central Government may prescribe such terms and conditions as may be applicable, for such assignment of
spectrum, including the frequency range, methodology for pricing, price, fees and charges, payment mechanism, duration
and procedure for the same.
(4) The Central Government shall assign spectrum for telecommunication through auction except for entries listed in the
First Schedule for which assignment shall be done by administrative process.
66 The Telecommunications Act, 2023 defines the term “user” as below:
"user" means a natural or legal person using or requesting a telecommunication service but does not include person
providing such telecommunication service or telecommunication network.
49service layer without investing in or deploying their own satellite
communication networks.
2.47 It is worth noting that, based on TRAI’s recommendations dated 17.02.2025,
DoT has already included an authorisation for the establishment of gateway
earth stations [viz. Satellite Earth Station Gateway (SESG) Provider
authorisation] in the draft of the Telecommunications (Authorisation for
Telecommunication Network) Rules, 2025. In respect of SESG Provider
authorisation, these draft rules provide, inter-alia, as below:
(a) The scope of SESG provider authorisation comprises of establishing,
operating, maintaining, or expanding SESG for such satellite systems
which are authorised by the Department of Space or IN-SPACe, or any
other office so authorised by the Central Government for this purpose.
(b) The SESG Provider authorised entity may provide its SESG infrastructure
to entities authorised under sub-section (1) of section 3 of the
Telecommunications Act 2023 (“partnering entities”), to enable the use
of satellite systems for the purposes of the authorisation of such
partnering entity, in accordance with the mutual agreement with such
entities on a fair and non-discriminatory basis.
(c) The authorised entity holding the SESG provider authorisation may
utilize the spectrum of the partnering entity for the limited purpose of
configuration, while the right to use of spectrum shall remain with the
partnering entity.
2.48 It is noteworthy that the proposed Satellite Communication Network (SCN)
authorisation would, essentially, be a super-set of the proposed SESG Provider
authorisation. The entities holding the proposed SCN authorisation would be
permitted to not only establish gateway earth stations (permitted under the
scope of the proposed SESG Provider authorisation), but also seek the
50assignment of satellite spectrum from the Central Government (not permitted
under the scope of the proposed SESG authorisation).
2.49 The policy and regulatory framework for any new authorisation involves,
essentially, two sets of conditions – one involving the conditions for the grant
of authorisation to entities (such as eligibility conditions), and the other
involving the conditions governing the operation under the authorisation
(such as technical conditions, operating conditions, security conditions etc.).
Both sets of conditions would require to the prescribed for Satellite
Communication Network authorisation as well. Specifically, with respect to the
eligibility conditions, it is worth mentioning that DoT, through the draft dated
09.10.2025 of the Telecommunications (Authorisation for Telecommunication
Networks) Rules, 2025, proposed the following eligibility conditions for the
grant of SESG Provider authorisation:
“(1) An applicant seeking authorisation under these rules shall be a company
incorporated under the Companies Act.
(2) An applicant seeking SESG provider authorisation under these rules shall,
in addition to the requirement specified in sub-rule (1), also be either of the
following:
(a) a space segment provider, authorised by the Department of Space or IN-
SPACe, or any other office so authorised by the Central Government for this
purpose;
(b) a subsidiary of a space segment provider as specified in clause (a); or
(c) a person having agreement with a space segment provider as specified in
clause (a), for establishing, maintaining, operating, or expanding SESG in
respect of the satellite systems of the space segment provider in India.”
2.50 Apparently, the eligibility conditions for the grant of the proposed SCN
authorisation should be analogous to the eligibility conditions for the grant of
51the proposed SESG Provider authorisation (as proposed by DoT through the
draft rules dated 09.10.2025) with necessary modifications.
2.51 The Authority also notes that in the draft dated 05.09.2025 of the
Telecommunications (Authorisation for Provision of Main Telecommunication
Services) Rules, 2025, DoT has proposed a set of general conditions, financial
conditions, technical and operating conditions, and security conditions. Besides,
DoT proposed “specific conditions for provision of telecommunication services
using satellite system” under Chapter 7 of the draft rules. Chapter 7 of the draft
rules dated 05.09.2025 is reproduced below:
“Chapter 7: Specific Conditions for Provision of Telecommunication Services
Using Satellite System
62. Applicability of Chapter 7
This chapter shall apply to an authorised entity providing telecommunication
service using satellite networks including non-terrestrial networks and GMPCS
networks, and all such authorised entities shall comply with the conditions
specified in this chapter, as well as other terms and conditions of such
authorisation as provided under these rules.
63. Provision of telecommunication services through satellite systems
(1) An authorised entity intending to provide telecommunication service
using satellite systems, shall apply for permission of the Central Government,
in the form and manner, as specified on the portal.
(2) An authorised entity making an application under sub-rule (1) shall:
(a) own the relevant satellite or space segment capacity; or
(b) enter into an agreement with a space segment provider authorised by
the Department of Space or INSPACe, or any other office so authorised by the
Central Government for this purpose, for leasing such satellite or space
segment capacity; and-
52(c) ensure that such agreement entered into under clause (b) has a
provision obligating the space segment provider to report any incident such as:
(i) unauthorised satellite signal that it may detect originating or terminating
within India; and
(ii) unauthorised access from India of any satellite that may be under its
control or operation which is being used to provide service outside India;
to the authorised entity and in-turn, the authorised entity shall immediately
report such incidents to the Central Government.
(3) The information along with supporting documents to be provided by an
authorised entity in the application made under sub-rule (1) shall include:
(a) details of the satellite system, the earth station gateway for each such
satellite system and the associated telecommunication network, along with
their location details;
(b) satellite or space segment capacity;
(c) where such capacity is leased from a space segment provider, a certified
true copy of such agreement; and
(d) any other information as may be required by the Central Government.
(4) The Central Government may, subject to its assessment of the
application and security vetting, if required, by the appropriate authority
responsible for satellite network clearance, grant permission, subject to terms
and conditions as it may specify.
(5) An authorised entity may use one or more permitted satellite systems,
subject to compliance with the condition that the satellite earth station gateway
for each such satellite system and the associated telecommunication network
is located in India.
(6) An authorised entity shall inform the Central Government of any changes
that may occur to the agreements specified under clause (b) of sub-rule (2),
and submit the revised copy of such agreement, within fifteen days of such
change.
53(7) An authorised entity shall, prior to undertaking any change in the
permitted satellite system, including change in frequency band, technology,
number of satellites, orbits or any other configuration related to ground and
space segments, apply to the Central Government for its prior written approval,
in the form and manner as specified on the portal.
(8) The Central Government may, on assessment of the application under
sub-rule (7), grant its written approval to such authorised entity.
64. Technical and operating conditions
(1) An authorised entity permitted to use satellite systems under rule 63
shall comply with the following technical and operating conditions:
(a) ensure that all traffic on the satellite network originating from or
terminating on the user terminals located in India, shall pass through an
authorised entity’s satellite earth station gateway and associated
telecommunication network located in India;
(b) ensure that no traffic originating from or terminating at a user terminal
located in India is routed via satellite earth station gateways located outside
India either directly or through inter satellite communication links, including
during failure of satellite earth station gateway in India or as part of
telecommunication network optimization;
(c) ensure that the user traffic shall not be mirrored by an authorised entity
to any satellite system or server located outside India through inter satellite
communication links or through any other means;
(d) provide real time traffic monitoring facility to ensure the compliance of
clause (a) to (c) above;
(e) ensure that no direct communication shall take place between two or
more user terminals through one or more satellites, without routing the user
traffic through satellite earth station gateway;
54(f) provide details relating to frequency plan to the Central Government, in
the form and manner as specified on the portal, and operate the satellite
network as per the frequency plan approved by the Central Government;
(g) provide to the Central Government, in the form and manner as specified
on the portal, self-certified details of the antenna parameters along with
radiation pattern results, for validation of the same;
(h) provide any information of and conduct tests, for interference
monitoring, and to take necessary steps, as directed by the Central
Government, for its mitigation; and
(i) the VSAT or any other FSS terminal used for providing backhaul link to
a base station or connectivity to an internet node or any other
telecommunication equipment, shall be located in the service area of an
authorised entity having such base station or internet node or any other
telecommunication equipment:
Provided that, the corresponding satellite earth station gateway may be located
anywhere in India and the connecting link from this satellite earth station
gateway to the core telecommunication network of such authorised entity using
such backhaul link or connectivity may be established as per the applicable
rules.
(2) An authorised entity may, subject to the prior written approval of the
Central Government, for which an application may be submitted in the form
and manner, and subject to such terms and conditions, as may be specified on
the portal:
(a) use its satellite earth station gateway established in India for providing
telecommunication services to users located outside India, subject to: (i)
obtaining all clearances (by whatever name called) as may be required to
provide such telecommunication services in the relevant jurisdiction where the
user is located, and (ii) compliance with such directions as the Central
Government may issue, from time to time; or
55(b) enter into arrangements with entities providing telecommunication
services, in areas outside India, after obtaining all clearances (by whatever
name called) as may be required to provide such telecommunication services
in the relevant jurisdiction where the user is located, for enabling use of the
authorised entity’s satellite earth station gateway established in India for uplink
and downlink of signals to and from satellites, subject to compliance with such
directions as the Central Government may issue, from time to time.
(3) The Central Government may, subject to its assessment of the
application made under sub-rule (2), and security vetting, if required, by the
appropriate authority responsible for satellite network clearance, grant
permission as requested by the authorised entity, subject to terms and
conditions as it may specify, including the following:
(a) the telecommunication traffic between the satellite earth station
gateway established in India and foreign telecommunication network, serving
the users located outside national service area, shall be confined to only the
equipment comprising the satellite earth station gateway, and shall not to be
transmitted into or received from a telecommunication network or user terminal
located in India; and
(b) the telecommunication traffic between the satellite earth station
gateway established in India and foreign telecommunication network, serving
the users located outside national service area, shall be routed through
authorised ILD gateway.
(4) The authorised entity shall indemnify the Central Government against
any and all claims that may arise from the implementation of the arrangements
covered under sub-rule (2).
65. Rollout Obligations
(1) An authorised entity, for provision of telecommunication service, may
either establish its own satellite earth station gateway or use the satellite earth
station gateway established by other authorised entities that are eligible for
56sharing such satellite earth station gateways under the terms of their respective
authorisations.
(2) An authorised entity shall rollout the telecommunication network using
satellite systems and assigned spectrum, within twelve months from the date
of assignment of such spectrum, as required for providing telecommunication
services to users.
(3) An authorised entity shall register with the Central Government, in the
form and manner as may be specified, for verification of the compliance of
rollout obligations, as per the test schedule test procedure (TSTP) specified by
the Central Government.
(4) On successful verification under sub-rule (3), the date of registration
with the Central Government shall be treated as the date of compliance of the
rollout obligations.
(5) In case of failure upon verification under sub-rule (3), an authorised
entity shall re-register, after necessary corrections, and in such cases, the date
of re- registration with the Central Government, on successful verification, shall
be treated as the date of compliance of the rollout obligation.
(6) Any failure to comply with the rollout obligations shall be treated as
breach of terms and conditions of the authorisation and shall be dealt as per
the Telecommunications (Adjudication and Appeal) Rules, 2025:
Provided that if the rollout obligations are complied with within thirty days of
the expiry of the due date for complying with such obligations, the Central
Government shall consider the same as fulfilment of rollout obligation, without
treating it as breach of terms and conditions of the authorisation.
(7) In case of failure to comply with the rollout obligations, in addition to
imposition of civil penalty as per the Telecommunications (Adjudication and
Appeal) Rules, 2025, the spectrum assignment for satellite systems, may be
withdrawn in accordance with sub-section (2) of section 7 of the Act.
66. Security conditions
57(1) The operation, maintenance and control facility for the satellite earth
station gateway, user terminals and associated telecommunication network,
shall be located in India.
(2) An authorised entity shall ensure that the permitted satellite systems be
used for providing telecommunication services for which it has been authorised
and such satellite systems are not used for any unauthorised activities including
surveillance and electronic warfare, or in a manner that may jeopardize the
sovereignty and security of India.
(3) An authorised entity shall ensure that in addition to the Target Intercept
List (TIL) based interception and monitoring, geographic location-based
interception and monitoring is also possible.
(4) An authorised entity shall ensure that a user, registered outside India
and using a user terminal of the permitted satellite system, shall register such
user terminal with the authorised entity when operating in India.
(5) An authorised entity shall ensure that any access to its
telecommunication services to users shall be provided only after registering
their user terminals on Equipment Identity Register (EIR) of the authorised
entity:
Provided that a user terminal, brought from outside India, shall be registered
on such EIR only after verifying the customs clearance obtained by the user in
respect of such user terminal.
(6) An authorised entity shall monitor the access to and use of its satellite
system, and immediately report to the Central Government, in the form and
manner as specified on the portal, any occurrence of an attempt to access and
operate a user terminal not registered under sub-rule (5), along with the
information about such user terminal and its location.
(7) The Central Government may separately notify suitable mechanism for
online co- ordination on a regular basis between the air, land and sea customs
and an authorised entity for exchange of information in respect of user
58terminals of satellite systems legally brought into the country which would
facilitate the authorised entity in identification and segregation of user
terminals of satellite systems clandestinely brought into India, to prevent their
access to the satellite system.
(8) An authorised entity shall monitor the operations of user terminals of
satellite systems within India, in the manner as specified by the Central
Government or the relevant authorised agency, and shall upon directions by
the Central Government, provide details relating to the identity and location of
such user terminals.
(9) An authorised entity shall ensure that no location spoofing device,
whether hardware or software, be incorporated with the user terminals to hide
the actual location of the user terminals and put in place a mechanism for
identification and reporting of any such device in its telecommunication
network.
(10) An authorised entity shall bind stationary type Fixed Satellite Service
(FSS) user terminals to the geolocation of the premises of the user, including
in respect of any relocation.
(11) An authorised entity shall ensure that no user relocates the stationary
type FSS user terminal except with the prior written approval from such
authorised entity.
(12) An authorised entity shall discontinue the provision of
telecommunication services to a user who attempts to, or relocates its FSS user
terminal, without its prior written approval.
(13) An authorised entity shall ensure that the telecommunication services of
any user terminal, either in idle mode or in use, are discontinued when such
user terminal enters into the areas restricted under sub-rule (2) of rule 38.
(14) An authorised entity shall ensure compliance with the directions and
timelines issued by the Central Government in respect of provision of Indian
navigation satellite system-based positioning system in its user terminals.
59(15) An authorised entity shall develop and submit to the Central
Government, in the manner as may be specified, a time-bound action plan
aiming to achieve, within a period of five years from the date of commercial
launch of services, indigenisation and procurement of at least twenty per cent
of the value of the goods, required for the ground segment of satellite network,
from India.
(16) An authorised entity shall submit annual implementation plans pursuant
to the action plan specified under sub-rule (15).
2.52 Prima facie, many of the technical and operating conditions, roll-out conditions,
security conditions, etc. included by DoT in the Chapter 7 of the draft rules
dated 05.09.2025 (which relate to network) should also be made applicable on
the proposed SCN authorisation with necessary modifications.
2.53 Specifically, with respect to the security conditions, it is noteworthy that DoT,
on 05.05.2025, issued an office memorandum (OM) on the subject -
“Instructions related to security aspects in Chapter XII of the UL Agreement for
the provision of GMPCS service”. Through the said OM, DoT imposed additional
security conditions (other than the existing security conditions) on the providers
of GMPCS service. A copy of DoT’s OM dated 05.05.2025 is enclosed as
Annexure 2.2. The additional security conditions relate, inter-alia, to gateway,
lawful interception facility, interference, etc. Apparently, some of the conditions
included by DoT in the OM dated 05.05.2025 could be relevant for SCN
authorised entities as well.
2.54 As mentioned earlier in this chapter, DoT, in the draft Rules for Main
Telecommunication Services dated 05.09.2025, has proposed two types of
authorisations for main telecommunication services viz. Network Service
Operator (NSO) or Virtual Network Operator (VNO). An NSO provides
60telecommunication service by establishing, operating, maintaining, or
expanding telecommunication network for the relevant telecommunication
service, while a VNO provides telecommunication service by entering into a
mutual agreement with a parent NSO.
2.55 As brought out earlier, the entities holding the proposed SCN authorisation
would establish, maintain, operate and expand a satellite communication
network to provide SCNaaS to service provider entities [i.e. entities authorised
under section 3(1)(a) of the Telecommunications Act, 2023]; the service
provider entity would provide services to its users by utilizing the SCN of the
proposed SCN authorised entity. There could be a scenario where a VNO
authorised to provide a telecommunication service [parented to an NSO
authorised to provide the relevant service] might require the SCNaaS from the
proposed SCN authorised entity for the delivery of services as per the scope of
its authorisation. For example, a VNO (Internet Service) which has parented
itself to an NSO (Internet Service) for obtaining upstream internet bandwidth
might prefer to utilize the SCN established by the proposed SCN authorised
entity for delivering internet services to its users in remote and far-flung areas.
Prima facie, in case VNOs are also permitted to utilize SCNs of the proposed
SCN authorised entities, it may enable several use cases.
2.56 In this context, the Authority solicits the views of stakeholders on the following
sets of questions:
Issues for Consultation:
Q1. What should be the eligibility conditions, area of operation,
validity period of authorisation and the scope of the proposed
Satellite Communication Network (SCN) authorisation under
61Section 3(1)(b) of the Telecommunications Act, 2023? Kindly
provide a detailed response with justification.
Q2. What should be the terms and conditions (general, technical,
operating, security related etc.) that should be made applicable
for the proposed Satellite Communication Network
authorisation? Kindly provide a detailed response with
justification.
Q3. Which type of authorised entities should be permitted to seek
Satellite Communication Network as a Service (SCNaaS) from
the entities holding the proposed Satellite Communication
Network authorisation? Whether virtual network operators
(VNOs) should also be permitted to seek SCNaaS? Kindly
provide a detailed response with justification.
2.57 As outlined in Chapter I, the gateway earth station acts as the bridge linking
the satellite communication network to the terrestrial communication
network. A gateway earth station receives signals from satellite(s), processes
them through a chain of radio frequency (RF) equipment, intermediate
frequency (IF) equipment and baseband equipment, and routes them into
terrestrial networks, enabling broadband, voice, and data services for end-
users. The baseband equipment (also referred to as “baseband system”) is
the critical pivot point where satellite signals become usable
telecommunication services. The baseband equipment performs modulation,
demodulation and error correction of baseband signal, manages the scheme
for accessing the satellite and network resources, the scheme for addressing
users (through IP addresses, telephone numbers etc.) and service profile of
users (user specific service plans, quality of service parameters etc.), controls
62the user traffic (Mbps), and quantum of frequency spectrum in use, and
monitors integrity and security of user traffic. In short, baseband equipment
provides control, visibility, and management of the satellite communication
services being rendered to end users.
2.58 Through the recommendations dated 17.02.2025 on ‘the Terms and
Conditions of Network Authorisations to be Granted Under the
Telecommunications Act, 2023’, read with ‘the Response dated 13.08.2025 to
the DoT’s back-reference dated 03.07.2025 on the recommendations dated
17.02.2025’, TRAI recommended, inter-alia, as below with respect to the
installation of baseband equipment at satellite earth station gateway:
“The baseband equipment to be installed at the SESG should ordinarily be
owned by the eligible service authorised entity interworking with the SESG
Provider authorised entity. However, the SESG Provider authorised entity
should be permitted to install the baseband equipment at its SESG on behalf
of the eligible service authorised entity:
Provided that the baseband equipment to be installed at the SESG may be
permitted to be owned by the SESG authorised entity as well if the control,
visibility, and management of the satellite communication services being
rendered to end users remains with the service authorised entity.”
2.59 After considering the TRAI’s recommendations dated 17.02.2025 on ‘the Terms
and Conditions of Network Authorisations to be Granted Under the
Telecommunications Act, 2023’, read with ‘the Response dated 13.08.2025 to the
DoT’s back-reference dated 03.07.2025 on the recommendations dated
17.02.2025’, DoT has issued the draft dated 09.10.2025 of the
Telecommunications (Authorisation for Telecommunication Networks) Rules,
2025 for seeking objections or suggestions of stakeholders. In the draft rules
dated 09.10.2025, DoT has proposed the following condition in respect of
63installation of baseband equipment at satellite earth station gateway under
the proposed ‘Satellite Earth Station Gateway (SESG) Provider Authorisation:
“The authorised entity holding the SESG provider authorisation establishing,
operating, maintaining, or expanding the baseband systems … shall extend
control, visibility, resource allocation and management of the
telecommunication services, being provisioned using satellite system to users,
to the partnering entity on mutually agreed terms and conditions.”
2.60 Apparently, a similar provision in respect of the installation of baseband
equipment on gateway earth stations could be made applicable on SCN
authorised entities as well. In this context, the Authority solicits inputs of
stakeholders on the following question:
Issue for Consultation:
Q4. Whether the SCN authorised entity establishing, operating,
maintaining, or expanding the baseband system alongwith SCN
should be mandated to extend control, visibility, resource
allocation and management of the telecommunication services,
being provisioned using SCN to users, to the partnering entity
on mutually agreed terms and conditions? Please provide a
detailed response with justification.
2.61 In the year 2020, the Government of India introduced space reforms, allowing
greater participation of non-government entities (NGEs) in space activities and
ensuring a level playing field. To provide regulatory clarity and foster a thriving
64space ecosystem, the Government issued Indian Space Policy-202367. Para
5.1 of the Indian Space Policy-2023 states that IN-SPACe shall act as the
single window agency for the authorisation of space activities by government
entities as well as NGEs, subject to relevant Government directives, keeping
in mind safety, national security, international obligations and/or foreign
policy considerations.
2.62 In May 2024, the IN-SPACe issued ‘Norms, Guidelines and Procedures for
Implementation of Indian Space Policy-2023 in respect of Authorization of
Space Activities (NGP)’68. The relevant extract of the Chapter IX of the NGP is
reproduced below:
“
(a) Authorization from IN-SPACe shall be required for establishment and/ or
operations of the following category of ground stations:
i. Satellite Control Centre (SCC)
ii. Telemetry, Tracking and Command (TT&C)
iii. Mission Control Centre (MCC)
iv. Remote Sensing Data reception station
v. Ground stations for supporting operations of the space-based
services such as Space Situational Awareness (SSA), astronomical,
space science or navigation missions, etc.
vi. Any other category, as decided by IN-SPACe.
(b) Applicant shall obtain the requisite clearance/ approval/ license from the
relevant Government department(s)/ ministries, as applicable and
necessary for operationalization of such ground station(s), after obtaining
IN-SPACe Authorization.
67 https://www.isro.gov.in/media_isro/pdf/IndianSpacePolicy2023.pdf
68 https://www.inspace.gov.in/sys_attachment.do?sys_id=5d532e37877102503b0f0d060cbb35cf
65(c) IN-SPACe Authorization is not required for setting up of gateways or hubs
supporting satellite communication services such as Direct-to-Home
(DTH), TV Uplink, Digital Satellite News Gathering Service (DSNG), Very
Small Aperture Terminal (VSATs), broadband, Inflight and Maritime
connectivity (IFMC), etc. Establishment and operations of such gateways/
hubs including those required for supporting the operations of the high
throughput GSO or NGSO satellites/ constellations shall be governed by
the prevailing licensing/ approvals process by the respective government
departments/ ministries. …” (Emphasis supplied)
2.63 In this context, it requires to be deliberated as to whether any provisions are
still required to be included in the terms and conditions of the proposed
Satellite Communication Provider authorisation considering the policy/ Act in
the Space sector. Accordingly, the Authority solicits the views of stakeholders
on the following question:
Issue for Consultation:
Q5. What provisions should be included in the terms and conditions
of Satellite Communication Network (SCN) authorisation
considering the policy/ Act in the Space sector? Kindly provide
a detailed response with justification.
2.64 Worldwide, in many countries, regulators have prescribed reference
agreements for ensuring effective interconnection between various service
providers engaged in the delivery of telecommunication services through
public switched telephone network (PSTN) and public land mobile network
(PLMN). In India, in the year 2002, TRAI issued the Telecommunication
Interconnection (Reference Interconnect Offer) Regulation, 2002. As per the
66said regulation, any telecom service provider, which is enjoying Significant
Market Power (SMP) status, is required to submit its proposed Reference
Interconnect Offer (RIO), describing, inter-alia, the technical and commercial
conditions for interconnection based on the model RIO as annexed to the
regulation to the Authority for approval and then to publish the approved RIO
on its website. Such RIO, thereafter, forms the basis of all interconnection
agreements to be entered into by/ and with the issuer of the RIO.
2.65 Besides, through the International Telecommunication Access to Essential
Facilities at Cable Landing Stations Regulations, 2007, TRAI has mandated
that every owner of cable landing station shall, in respect of its each cable
landing station, submit to the Authority, a document containing the terms and
conditions of Access Facilitation and Co-location facilities including landing
facilities for submarine cables at its cable landing stations for specified
international submarine cable capacity (“Cable Landing Station-Reference
Interconnect Offer”) in accordance with the provisions of the regulations for
approval of Authority. Every owner of a cable landing station shall publish, on
its website and in such other manner as the Authority may specify, within
fifteen days from the date of approval of the Cable Landing Station-Reference
Interconnect Offer by the Authority, the Cable Landing Station-Reference
Interconnect Offer so approved by the Authority.
2.66 Generally, interconnection between any two networks is mutually profitable if
the networks are vertically related. On the other hand, when two networks
offer substitute services, i.e., they are horizontally related, a network operator
has the incentive to foreclose or marginalize its opponent network through
various methods including high interconnection fees. Such a conduct may
result in scant supply or high prices of services, to the detriment of consumers.
In such situations, regulators often mandate the network operators to publish
67a regulator-approved reference interconnection offer (RIO) on their websites,
which forms the basis of all interconnection agreements with other network
operators.
2.67 In this context, it requires to be deliberated as to whether there is a need for
mandating a reference agreement between the entities holding the proposed
Satellite Communication Network authorisation and the entities holding
service authorisations under the Telecommunications Act, 2023 (which are
desirous of availing SCNaaS). Accordingly, the Authority solicits the views of
stakeholders on the following question:
Issue for Consultation:
Q6. Whether there is any need for mandating a reference
agreement between the entities holding the proposed Satellite
Communication Network authorisation and the authorised
entities providing telecommunication service? If yes, what
should be the salient features of the reference agreement
between such entities? Kindly provide a detailed response with
justification.
2.68 On 10.11.2025, the Authority issued a consultation paper69 on ‘Review of existing
TRAI Regulations on Interconnection matters’. In the consultation paper dated
10.11.2025, the Authority included a section to examine the issues with respect
to “Interconnection framework for satellite-based telecommunications
69 Source: https://trai.gov.in/sites/default/files/2025-11/CP_10112025.pdf
68services”70. Through the consultation paper dated 10.11.2025, the Authority
solicited inputs from stakeholders on, inter-alia, the following question:
Q34. What should be the interconnection framework for satellite-based
telecommunications networks with other telecom networks? Further, whether
the interconnection frameworks for MSS and FSS satellite-based
telecommunications networks should be distinct? Please provide your response
along with end-to-end diagrammatic representation and justification in respect
of the following:
a. Satellite - Satellite network interconnection
b. Satellite - PLMN interconnection
c. Satellite - PSTN interconnection”
2.69 The Authority is at present examining the comments/ inputs received from the
stakeholders on the issues raised through the consultation paper dated
10.11.2025 on ‘Review of existing TRAI Regulations on Interconnection matters’.
70 A relevant extract from the consultation paper dated 10.11.2025 on ‘Review of existing TRAI Regulations on Interconnection
matters’ is reproduced below:
“2.303. The question of whether an interconnection framework should be established for satellite-based telecom services
arises amidst the growing importance of satellite technologies in extending telecommunication coverage to remote and
underserved areas, needs to be discussed. Satellite based networks provide vital connectivity where terrestrial
infrastructure, including PLMN and PSTN, may not be feasible or cost-effective. As such, integrating these satellite services
within the broader telecom ecosystem, including seamless interconnection with existing PLMN and PSTN networks,
including voice and SMS traffic interoperability across mobile and landline networks, may also need examination.
2.304. Further, it needs to be assessed that whether separate interconnection framework is required for Mobile Satellite Service
(MSS) and Fixed Satellite Service (FSS), or the existing interconnection framework would be sufficient to meet the requirements
of satellite-based telecommunications networks. In case, a separate regulatory framework is required for these interconnections,
the key technical requirements may include specifying the nature and location of Points of Interconnect (POIs), which involve
satellite earth station gateways and their interconnection with other satellite networks, PLMN and PSTN. Regulatory considerations
could address interconnection charges, interconnection usage charges, quality of service guarantees, and terms and conditions
of interconnection agreements, ensuring effective interoperability among satellite, PLMN, and PSTN operators.
2.305. One may argue that since MSS-based telecommunications network are largely similar to the PLMN and as FSS-based
telecommunications network are similar to the PSTN, hence no separate interconnection framework for the satellite-based
telecommunications network may be required. Therefore, it has to be examined whether the interconnection framework for PLMN
and PSTN can be adopted for satellite-based telecommunications networks.
2.306. Satellite-based telecommunications network would likely have a national footprint with certain limited number of gateways.
The connectivity with the satellite-based telecommunications network is extended through these gateways. The interconnection
of satellite-based telecommunications network with PLMN and PSTN, for which POIs are existing at LSA and below LSA level
respectively, needs to be examined.”
69In this background, the Authority solicits the views of stakeholders on the
following set of questions:
Issues for Consultation:
Q7. With respect to the interconnection with the proposed Satellite
Communication Network Authorised Entities, whether there are
any other issues in addition to those raised in TRAI’s
consultation paper on ‘Review of existing TRAI Regulations on
Interconnection matters’ dated 10.11.2025, which require to be
addressed in this consultation process? Please provide a
detailed response with justification.
Q8. Any other inputs or suggestions relevant to the proposed
Satellite Communication Network authorisation may kindly
provided with detailed justification.
C. Assignment of Spectrum for the Satellite Communication
Network Authorisation
2.70 This section begins with a description of the provisions of the
Telecommunications Act, 2023 related to the assignment of spectrum. Then,
it recapitulates the salient points related to the assignment of spectrum to the
proposed SCN authorised entities emerging from the communications
between DoT and TRAI. Subsequently, it provides a brief description of the
use of spectrum in a typical satellite communication network. Thereafter, it
70proceeds to identify the specific issues related to the usage of spectrum under
the proposed SCN authorisation for consultation with stakeholders.
(1) Provisions related to the assignment of spectrum in the
Telecommunications Act, 2023
2.71 Section 4 of the Telecommunications Act, 2023 grants the power of
assignment of spectrum to the Central Government. Section 4 of the Act is
reproduced below:
“4. (1) The Central Government, being the owner of the spectrum on behalf
of the people, shall assign the spectrum in accordance with this Act, and may
notify a National Frequency Allocation Plan from time to time.
(2) Any person intending to use spectrum shall require an assignment from
the Central Government.
(3) The Central Government may prescribe such terms and conditions as may
be applicable, for such assignment of spectrum, including the frequency
range, methodology for pricing, price, fees and charges, payment mechanism,
duration and procedure for the same.
(4) The Central Government shall assign spectrum for telecommunication
through auction except for entries listed in the First Schedule for which
assignment shall be done by administrative process.
Explanation.— For the purposes of this sub-section,—
(a) "administrative process" means assignment of spectrum without holding
an auction;
(b) "auction" means a bid process for assignment of spectrum.
(5) (a) The Central Government may, by notification, amend the First Schedule
for assignment of spectrum—
(i) in order to serve public interest; or
(ii) in order to perform government function; or
71(iii) in cases where auction of spectrum is not the preferred mode of
assignment due to technical or economic reasons.
(b) The notification referred to in clause (a) shall be laid before each House
of Parliament.
(6) The Central Government, if it determines that it is necessary in the public
interest so to do, may exempt,—
(a) from the requirement of assignment under sub-section (2), in such manner
as may be prescribed; and
(b) by notification, specific usages within specified frequencies and
parameters, from the requirements of sub-section (2).
(7) Any exemption with respect to use of spectrum granted under the Indian
Telegraph Act, 1885 and the Indian Wireless Telegraphy Act, 1933 prior to
the appointed day, shall continue under this Act, unless otherwise notified by
the Central Government.
(8) Any spectrum assigned through the administrative process prior to the
appointed day, shall continue to be valid on the terms and conditions on which
it had been assigned, for a period of five years from the appointed day, or the
date of expiry of such assignment, whichever is earlier.”
2.72 The First Schedule, mentioned in sub-section 4 of Section 4 of the Act is
reproduced below:
“THE FIRST SCHEDULE
…
ASSIGNMENT OF SPECTRUM THROUGH ADMINISTRATIVE PROCESS
1. National security and defence.
2. Law enforcement and crime prevention.
3. Public broadcasting services.
4. Disaster management, safeguarding life and property.
725. Promoting scientific research, resource development, and exploration.
6. Safety and operation of roads, railways, metro, regional rail, inland
waterways, airports, ports, pipelines, shipping, and other transport systems.
7. Conservation of natural resources and wildlife.
8. Meteorological department and weather forecasting.
9. Internationally recognised dedicated bands for amateur stations,
navigation, telemetry, and other like usages.
10. Use by Central Government, State Governments, or their entities or other
authorised entities for safety and operations of mines, ports and oil
exploration and such other activities where the use of spectrum is primarily
for supporting the safety and operations.
11. Public Mobile Radio Trunking Services.
12. Radio backhaul for telecommunication services.
Explanation.—The term "radio backhaul" shall mean the use of radio
frequency only to interconnect telecommunication equipment, other than the
customer equipment in telecommunication networks.
13. Community Radio Stations.
14. In-flight and maritime connectivity.
15. Space research and application, launch vehicle operations and ground
station for satellite control.
16. Certain satellite-based services such as: Teleports, Television channels,
Direct To Home, Headend In The Sky, Digital Satellite News Gathering, Very
Small Aperture Terminal, Global Mobile Personal Communication by Satellites,
National Long Distance, International Long Distance, Mobile Satellite Service
in L and S bands.
17. Use by Central Government, State Governments or their authorised
agencies for telecommunication services.
18. Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam
Limited (MTNL).
7319. Testing, trial, experimental, demonstration purposes for enabling
implementation of new technologies, including for creation of one or more
Regulatory Sandboxes.”
2.73 While Section 4 of the Telecommunications Act, 2023 deals with the aspects
related to assignment of spectrum, Section 5, 6, 7, and 8 of the
Telecommunications Act, 2023 deal with the aspects related to refarming and
harmonization, technology neutral use of spectrum, optimal utilization of
spectrum and establishment of monitoring and enforcement mechanism
respectively. These sections are reproduced below:
“5. Re-farming and harmonisation.—The Central Government may, to enable
more efficient use of spectrum, re-farm or harmonise any frequency range
assigned under section 4, subject to such terms and conditions, as may be
prescribed.
Explanation.—For the purposes of this section,—
(a) “harmonisation” means rearrangement of a frequency range;
(b) “re-farming” means repurposing of a frequency range for a different use,
other than that for which it is used by an existing assignee.
6. Technologically neutral use of spectrum.—The Central Government may
enable the utilisation of the spectrum in a flexible, liberalised and
technologically neutral manner, subject to such terms and conditions,
including applicable fees and charges, as may be prescribed.
7. Optimal utilisation of spectrum.—(1) The Central Government may, to
promote optimal use of the available spectrum, assign a particular part of a
spectrum that has already been assigned to an entity, known as the primary
assignee, to one or more additional entities, known as the secondary
74assignees, where such secondary assignment does not cause harmful
interference in the use of the relevant part of the spectrum by the primary
assignee, subject to such terms and conditions as may be prescribed.
(2) The Central Government may, notwithstanding anything contained in any
other law for the time being in force, after providing a reasonable opportunity
of being heard to the assignee concerned, determines that any assigned
spectrum has remained unutilised for insufficient reasons for such period as
may be prescribed, terminate such assignment, or a part of such assignment,
or prescribe further terms and conditions relating to spectrum utilisation.
8. Establishment of monitoring and enforcement mechanism.— (1) The
Central Government may establish by notification, such monitoring and
enforcement mechanism as it may deem fit to ensure adherence to terms and
conditions of spectrum utilisation and enable interference-free use of the
assigned spectrum.
(2) The Central Government may permit the sharing, trading, leasing and
surrender of assigned spectrum, subject to the terms and conditions, including
applicable fees or charges, as may be prescribed.”
(2) The aspects related to the assignment of spectrum to the
proposed SCN authorised entities emerging from the
communication between DoT and TRAI
2.74 DoT, through its supplementary reference dated 17.10.2024, conveyed to
TRAI that “keeping in view the increasing use of NTN (Non terrestrial
networks) including satellite communication networks in provisioning of FSS
(Fixed Satellite Services) including VSAT services and MSS (Mobile Satellite
Services), TRAI may consider an authorisation for satellite communication
75network under Section 3(1)(b) of the Telecommunications Act, 2023
alongwith the following:
d. Terms and conditions relating to such authorisation
e. Provision of assignment of spectrum for both feeder link as well as user
link under such authorisation
f. Service area of such authorisation.”
2.75 In this regard, after following a comprehensive consultation with
stakeholders, TRAI, provided its recommendations dated 17.02.202571 on ‘the
Terms and Conditions of Network Authorisations to be Granted Under the
Telecommunications Act, 2023’. About the satellite communication network
authorisation suggested by DoT, TRAI conducted a detailed analysis and
expressed its considered opinion that “the permissible options for the delivery
of satellite-based telecommunication services have been enabled through the
Authority’s recommendations dated 18.09.2024 in respect of Satellite-based
Telecommunication Service authorisation and the present recommendations
in respect of the SESG authorisation. Accordingly, the Authority is of the view
that “there is no need for introducing any additional authorisation for satellite
communication network under the Telecommunications Act, 2023, at this
stage”.
2.76 Subsequently, DoT, through its back-reference dated 03.07.2025 to the
TRAI’s recommendations dated 17.02.2025, stated that “given that the
Government has not accepted the Satellite-based Telecommunication Service
Authorisation under Section 3(1)(a) - the Government proposes the
71 Recommendations dated 17.02.2025: Recommendation of TRAI on the ‘Terms and Conditions of Network Authorisations to be
Granted Under the Telecommunications Act, 2023’ dated 17.02.2025 [URL: https://trai.gov.in/sites/default/files/2025-
02/Recommendations_17022025.pdf]
76introduction of a Satellite Communication Network (SCN) Authorisation under
Section 3(1)(b) and requests TRAI to provide terms and conditions for
Satellite Communication Network (SCN) authorisation including provision of
assignment of spectrum for both feeder link as well as user link under such
authorisation.”
2.77 Thereafter, TRAI, in its response dated 13.08.202572 to the DoT’s back-
reference dated 03.07.2025, conveyed, inter-alia, as below:
“2.131.7 In this regard, the Authority has decided to initiate a fresh process
of consultation with stakeholders to solicit views on terms and conditions for
Satellite Communication Network (SCN) authorisation, including the provision
of assignment of spectrum for both feeder link as well as user link under such
authorisation. Upon the conclusion of the consultation process, the Authority
would provide its recommendations on the matter to the Government.
2.131.8 In case upon the conclusion of the consultation process, the
Authority recommends that the spectrum for feeder link and/ or user link
should be assigned under SCN Authorisation, the Government may thereafter,
if deemed fit, seek the recommendations of the Authority on the terms and
conditions for the assignment of spectrum under SCN Authorisation.”
2.78 Subsequently, DoT, through a letter dated 29.08.2025, requested TRAI to
provide recommendations on the terms and conditions of the proposed
Satellite Communication Network (SCN) Authorisation, alongwith terms and
conditions relating to the assignment of spectrum in a consolidated form,
covering all aspects at once.
72 The response of TRAI to the Back-Reference dated 03.07.2025 on the Recommendations of TRAI on the ‘Terms and Conditions
of Network Authorisations to be Granted Under the Telecommunications Act, 2023’ is available at the following URL:
https://trai.gov.in/sites/default/files/2025-07/TRAI_Response_04072025.pdf]
772.79 In this regard, TRAI, through its letter dated 22.09.2025, requested DoT to
clarify as to whether the assignment of spectrum to ‘Satellite Communication
Network’ is covered under the First Schedule of the Telecommunications Act,
2023; and provide information on frequency bands in which spectrum is
envisaged to be assigned to entities holding the proposed SCN authorisation.
2.80 In response, DoT through its letter dated 07.10.2025, provided its
clarification. A relevant extract from the DoT’s letter dated 07.10.2025 is given
below:
“2. With reference to para 7, it is submitted that, the First Schedule of The
Telecommunications Act, 2023, is a list of entries based on use of the
spectrum. Where the use of the spectrum is covered within the scope of an
entry in the First Schedule, the assignment of such spectrum may be
undertaken by administrative process.
2.1 An entity holding a SCN (Satellite Communication Network) authorisation
seeks assignment of spectrum for use that falls within the scope of any of the
entries of the First Schedule, it can be assigned spectrum through
administrative method. Accordingly, an SCN Authorised Entity seeking to use
spectrum for In-flight Maritime Connectivity, may apply for administrative
assignment under Entry 14 of the First Schedule. An SCN Authorised Entity
seeking to use spectrum for the satellite-based services under Entry 16, such
as Very Small Aperture Terminal, Global Mobile Personal Communication by
Satellites, National Long Distance, International Long Distance, Mobile
Satellite Services in L & S bands, can apply for spectrum assignment under
Entry 16.
2.2 It may also be possible that a SCN Authorised Entity without seeking
spectrum may enter into sharing agreements with another authorised entity
availing of its satellite network (the "partnering entity"), to utilise the spectrum
78assigned to such partnering entity for the limited purpose of providing the
service of its satellite-based networks.
3. With reference to para 8, at present, spectrum assignments for different
kind of telecommunication services are being made in the L, C, Ku and Ka
bands. Also, based on the TRAI recommendations dated 09.05.2025, other
frequency bands i.e. Q-band and V-band are also being considered for
different kind of Telecommunications Services.”
2.81 In short, DoT has envisaged that an entity holding the proposed SCN
authorisation would have the following options for accessing spectrum:
(a) The SCN authorised entity may seek the assignment of spectrum under
the provisions of Section 4 of the Telecommunications Act, 2023 from
the Central Government. If an entity holding the proposed SCN
authorisation seeks the assignment of spectrum for any usage that falls
within the scope of any of the entries of the First Schedule of the
Telecommunications Act, 2023, it can be assigned spectrum through
administrative method.
(b) The SCN authorised entity may enter into an agreement/ arrangement
with a service authorised entity, desirous of availing its satellite
communication network (“the partnering entity”), to utilize the spectrum
assigned to such partnering entity - for the limited purpose of providing
Satellite Communication Network as a Service (SCNaaS) to the
partnering entity. [At present, there is no policy framework for enabling
such agreements/ arrangements.]
(3) Use of Spectrum in a Typical Satellite Communication Network
2.82 Satellite communication is essentially a form of wireless communication,
which uses radio waves. A typical satellite communication network relies on
79two major types of links viz. user link, and gateway link. A brief description of
user link and gateway link is given below:
(a) User link: The user link is the communication path between the end-user
terminal (such as VSAT, satellite phone etc.) and the satellite.
(b) Gateway link: The gateway link73 is the communication path between a
gateway earth station and the satellite. Unlike the user link, which
directly connects individual subscribers to the satellite, the gateway link
connects the satellite to the core network infrastructure of the service
provider. It carries aggregated traffic (internet, telephony, TV signals,
etc.) from the operator’s terrestrial network to the satellite and vice
versa.
2.83 In Mobile Satellite Service (MSS), the communication path between a gateway
earth station and the satellite is referred to as “feeder link”74. In satellite
communication industry parlance, the term “gateway link” is often used
interchangeably with the term “feeder link”. In this consultation paper, for
convenience, both the gateway link (in case of FSS) and the feeder link (in
case of MSS) will be referred to as ‘feeder link’.
2.84 In a typical satellite communication network, established for delivering bi-
directional telecommunication services (such as voice telephony, internet
access etc.), both feeder link and user link are configured in duplex mode so
that data can flow to the satellite and from the satellite at the same time. This
is, generally, achieved by using different frequency bands for uplink and
73 In case of Mobile Satellite Service (MSS), the communication path between a gateway earth station and the satellite is called
“feeder link”.
74 As per the ITU-Radio Regulations, the term ‘feeder link’ has been defined as below:
“feeder link: A radio link from an earth station at a given location to a space station, or vice versa, conveying information for a
space radiocommunication service other than for the fixed-satellite service. The given location may be at a specified fixed point,
or at any fixed point within specified areas.”
80downlink to avoid interference. The terms ‘uplink’ and ‘downlink’ in the context
of satellite communication are outlined below:
(c) Uplink: Uplink is the transmission path of signals from an Earth station
to the satellite. Direction: Earth → Satellite.
(d) Downlink: Downlink is the transmission path of signals from the satellite
to an Earth station. Direction: Satellite → Earth.
2.85 Thus, satellite communication networks used for the delivery of bi-directional
telecommunication services require frequency spectrum for establishing four
types of links viz.
(a) User link (uplink)
(b) User link (downlink)
(c) Feeder link (uplink)
(d) Feeder link (downlink).
2.86 The following figure depicts the afore-mentioned links in a typical satellite
communication network:
Satellite
Feeder link (UL) User link (DL)
User link (UL)
Feeder link (DL)
Gateway User Terminals
Figure 2.4: Main Communication Links in a Typical Satellite
Communication Network
812.87 Amongst satellite-based communication services, Fixed-Satellite Services
(FSS) and Mobile-Satellite Services (MSS) are the most prominent services.
FSS supports communications from one fixed-point to another fixed-point,
such as VSAT, Teleports, etc. MSS supports communications between mobile
devices, such as satellite phones. The definitions of these services, as
provided by ITU’s Radio Regulations 202475, are given below:
“1.21 fixed-satellite service: A radiocommunication service between earth
stations at given positions, when one or more satellites are used; the given
position may be a specified fixed point or any fixed point within specified
areas; in some cases this service includes satellite-to-satellite links, which may
also be operated in the inter-satellite service; the fixed-satellite service may
also include feeder links for other space radiocommunication services.”
“1.25 mobile-satellite service: A radiocommunication service: between mobile
earth stations and one or more space stations, or between space stations
used by this service; or between mobile earth stations by means of one or
more space stations. This service may also include feeder links necessary for
its operation.”
2.88 Both types of satellite-based telecommunication services (FSS and MSS)
involve user links and feeder links, and thereby require spectrum in suitable
frequency bands for each type of links. Feeder links are fixed in nature and
therefore fall under FSS category. On the other hand, type of user terminals
determines as to whether the service is FSS or MSS – if the user terminal is
75 Source: https://www.itu.int/hub/publication/r-reg-rr-2024/
82fixed76, the service falls under the FSS category; else if the user terminal is
mobile, the service falls under the MSS category.
2.89 FSS and MSS rely on carefully allocated frequency bands, each chosen to
balance coverage, capacity, and resilience against atmospheric effects. Lower
frequency bands77 such as L-band (1-2 GHz) and S-band (2-4 GHz) are often
favoured for providing MSS due to their better propagation characteristics.
The higher frequency bands78 such as C-band (4-8 GHz), Ku-band (10-15
GHz) and Ka-band (17-31 GHz) are often used for providing FSS; the higher
bands enable high-capacity fixed services but face challenges like rain fade.
2.90 Both types of satellite-based telecommunication services (FSS and MSS) can
be provided by using GSO satellites or NGSO (MEO/ LEO) satellites depending
on the applications. Often GSO satellites are chosen for stable services in a
wide area, while NGSO satellites are chosen for low-latency services.
2.91 At this stage, it would be worthwhile to recapitulate (a) the extant practice
with respect to the assignment of spectrum for the provision of satellite-based
telecommunication services, and (b) the recent recommendations of TRAI on
the matter. The following section provides a summary of these aspects.
2.92 Prior to the enactment of the Telecommunications Act, 2023, the Central
Government had been assigning the spectrum in C-band, Ku-band and Ka-
76 As per the extant policy regime in India, user terminal stations on moving platforms are also permitted for provisioning of
connectivity subject to compliance to relevant TEC standard(s) and conditions mentioned therein.
Source: Unified License Agreement
77 Lower frequencies suffer less from atmospheric attenuation (rain fade, clouds, etc.), making them more reliable for mobile
platforms.
78 Higher frequencies support wider bandwidths, enabling faster data rates.
83band for the provision of GSO-based FSS (mainly for VSAT-based CUG
applications). Further, for the provision of GSO-based MSS, the Central
Government has assigned the spectrum in L-band (for user link) and C-band
(for feeder link). At present, the State-owned company - BSNL provides GSO-
based MSS by using INMARSAT (currently, a subsidiary of VIASAT Inc.) in
India. The services, inter-alia, cover government, aviation, and maritime
sectors.
2.93 After the enactment of the Telecommunications Act, 2023, DoT sent a
reference dated 11.07.2024 to TRAI on the subject- ‘Seeking TRAI
recommendations on terms and conditions of spectrum assignment including
spectrum pricing for certain satellite-based commercial communication
services’. Through the reference dated 11.07.2024, DoT expressed that
“[k]eeping in view the provisions of Section 4 and the First Schedule of the
Telecommunications Act-2023, in terms of Section 11(1)(a) of TRAI Act 1997,
TRAI is requested to provide its recommendations on terms and conditions of
spectrum assignment including spectrum pricing while accounting for level
playing field with terrestrial access services for the following satellite-based
communication services:
i. NGSO based Fixed Satellite Services providing data communication and
Internet services. In its recommendations, TRAI may take into account
services provided by GSO-based satellite communication service
providers.
ii. GSO/ NGSO based Mobile Satellite Services providing voice, text, data,
and internet services.”
2.94 With respect to DoT’s reference dated 11.07.2024, TRAI, after stakeholders’
consultation, sent its recommendations on ‘Terms and Conditions for the
84Assignment of Spectrum for Certain Satellite-Based Commercial
Communication Services’ dated 09.05.202579.
2.95 Subsequently, DoT, through a back-reference dated 12.11.2025, shared its
views on TRAI’s recommendations dated 09.05.2025 and requested TRAI to
provide its reconsidered recommendations with respect to a few
recommendations/ sub-recommendations. After a careful consideration of
DoT’s views on the matter, TRAI provided its response on 08.12.202580 to
DoT’s back-reference dated 12.11.2025. At present, TRAI’s recommendations
dated 09.05.2025 and TRAI’s response dated 08.12.2025 are under
examination of DoT.
2.96 Salient points of the TRAI’s recommendations dated 09.05.2025 (read with
the TRAI’s response dated 08.12.2025 to DoT’s back-reference dated
12.11.2025) are given below:
(a) For assigning frequency spectrum for user links and feeder links for
NGSO-based FSS for data communication and Internet service,
frequency spectrum in Ku band, Ka band, and Q/V band should be
considered.
(b) For assigning frequency spectrum for GSO/ NGSO-based MSS for
providing voice, text, data communication and Internet service, the
following frequency bands should be considered:
(i) L band and S band for user links; and
(ii) C band, Ku band, Ka band and Q/V band for feeder links.
79 TRAI’s recommendations dated 09.05.2025 may be accessed at the following URL:
https://trai.gov.in/sites/default/files/2025-05/PR_No.36of2025.pdf’
80 TRAI’s response dated 08.12.2025 is available at the following URL:
https://trai.gov.in/sites/default/files/2025-12/Recommendation_08122025_0.pdf
85(c) Frequency spectrum should be assigned for NGSO-based FSS and GSO/
NGSO-based MSS for a period of up to five years. However, considering
the market conditions, the Government may extend it for a further
period of up to two years.
(d) Terms and conditions including prices for the spectrum assignment for
NGSO-based FSS and GSO/ NGSO-based MSS, recommended through
these recommendations, should remain valid for a period of five years
from the date of notification of the policy regime by the Central
Government, further extendable by a period of upto two years.
(e) Any revision in the terms and conditions including prices for the
spectrum assignment for NGSO based FSS and GSO/ NGSO based MSS,
notified by the Central Government after a period of five years from the
date of notification of the policy regime recommended through these
recommendations, should become applicable to all authorised entities
including the existing entities.
(f) To control interference, the relevant provisions of ITU-RR should be
made applicable to the authorised entities, and other entities which
have been authorised by the Central Government.
(g) The frequency spectrum identified by the Central Government for
satellite-based telecommunication services in the higher frequency
bands such as C, Ku, Ka, and Q/V bands that are assigned on a shared
basis, should be assigned with a condition that each Authorised Entity
and all other entities which have been authorized by the Central
Government to use such shared frequency spectrum, will coordinate
among themselves in good faith.
(h) The Government, with the help of Telecom Engineering Center (TEC),
should examine the need for prescribing the framework for sharing of
spectrum. The framework may include conditions on the maximum
equivalent power flux density (EPFD) etc. With a view to nudging the
86satellite operators to coordinate among themselves in good faith at the
earliest, the Government may also consider introducing a provision for
splitting of spectrum as a last resort in line with the provision created
by FCC in its ‘Spectrum Sharing Rules for Non-Geostationary Orbit,
Fixed-Satellite Service Systems’ in case two or more NGSO-based FSS
satellite systems fail to complete coordination.
(i) For establishment and operation of satellite earth station gateways, the
authorised entities should be mandated to coordinate among
themselves in good faith.
(j) The DoT, with the help of TEC, should carry out a study to assess the
requirement for prescribing coordination distance between two satellite
earth station gateways (GSO-NGSO and NGSO-NSGO) operating on the
same frequencies. If required, necessary guidelines may be issued.
(k) In the frequency range(s) already identified for IMT such as 42.5-43.5
GHz, the satellite earth station gateways should be permitted to be
established at uninhabited or remote locations on case-to-case basis,
where there is a less likelihood of IMT services to come up.
(l) With a view to mitigate the risk of scarcity of gateway sites, Satellite
Earth Station Gateway(s) should be installed and commissioned within
12 months from the date of permission granted to the authorised
entities by the Central Government for the establishment of the Satellite
Earth Station Gateway(s):
Provided that if the satellite earth station gateway is installed and
commissioned by the Authorised Entity within thirty days of the expiry
of the due date for complying with such obligations, the Central
Government should consider the same as fulfilment of the obligation,
without treating it as a breach of terms and conditions of the
authorisation.
87(m) The entities authorised to provide satellite-based telecommunication
services should be permitted to surrender the right to use frequency
spectrum assigned to them before the expiry of the validity period. For
this purpose, broad terms and conditions have been recommended.
(n) There should be a defined timeline, not exceeding 30 days from the
date of application, within which the frequency spectrum should be
assigned to an Authorised Entity for the provision of satellite-based
communication services, provided that the in-principle clearance of
satellite network has been given by the Central Government. In case of
any objection, the same may be communicated to the concerned
Authorised Entity within such window of 30 days from the date of
application, for necessary action.
(o) Spectrum charges should be levied as:
GSO-based FSS 4% of Adjusted Gross Revenue, subject
to a minimum annual spectrum charge
of Rs. 3,500 per MHz.
NGSO-based FSS 4% of Adjusted Gross Revenue
Plus
an additional charge of Rs. 500 per
subscriber per annum in urban areas,
while exempting the rural and remote
areas from this additional charge
Subject to a minimum annual spectrum
charge of Rs. 3,500 per MHz
GSO/ NGSO-based MSS 4% of Adjusted Gross Revenue, subject
to a minimum annual spectrum charge
of Rs. 3,500 per MHz
88(p) Payment terms for spectrum charges:
(i) AGR-based spectrum charges should be paid in accordance with
the schedule of payment as finalised by DoT after the consultation
process on the draft dated 05.09.2025 of the Telecommunications
(Authorisation for Provision of Main Telecommunication Services)
Rules, 2025.
(ii) Minimum spectrum charges should be paid in advance at the time
of assignment of spectrum and at the beginning of every year. The
quarterly/annual adjustment of payment dues shall be made with
the minimum spectrum charge for the particular year only.
(iii) Per subscriber charges should be paid by NGSO-based FSS service
providers on a quarterly basis equal to 125xN , where N refers to
u u
the total number of subscribers in urban areas at the end of the
previous quarter.
(q) The Government may consider providing a subsidy for NGSO-based FSS
user terminals to the targeted user segments in unserved/ underserved
regions of rural and remote areas.
2.97 It may be noted that in line with the DoT’s request81 through the reference
dated 11.07.2024, TRAI provided its recommendations on both GSO and
NGSO-based MSS; with respect to FSS, TRAI’s recommendations were mainly
81 The relevant paragraph of the DoT’s reference dated 11.07.2024 is reproduced below:
“4. Keeping in view the provisions of Section 4 and the First Schedule of the Telecommunications Act-2023, in terms of Section
11(1)(a) of TRAI Act 1997, TRAI is requested to provide its recommendations on terms and conditions of spectrum assignment
including spectrum pricing while accounting for level playing field with terrestrial access services for the following satellite-
based communication services:
i. NGSO based Fixed Satellite Services providing data communication and Internet services. In its recommendations, TRAI
may take into account services provided by GSO-based satellite communication service providers.
ii. GSO/ NGSO based Mobile Satellite Services providing voice, text, data, and internet services.”
89focussed on NGSO-based FSS; as far as GSO-based FSS82 is concerned, TRAI
provided its recommendations on spectrum charges only.
(4) Examination of the matter related to the usage of spectrum
under the proposed SCN authorisation
2.98 Through satellite communication networks, the telecommunication services
involving bi-directional communication (voice, text, data and internet) can be
provided under two categories - Fixed Satellite Service (FSS) and Mobile
Satellite Service (MSS).83 The type of user terminals determines as to whether
the service is FSS or MSS. In general, the service falls under FSS category if
the user terminal is fixed84. If the user terminal is mobile, the service falls
under MSS category. In India, at present, the allocation of spectrum for both
FSS and MSS is governed by National Frequency Allocation Plan (NFAP)
2025.85
82 While seeking recommendations on NGSO based FSS, DoT expressed that “[i]n its recommendations, TRAI may take into
account services provided by GSO-based satellite communication service providers.”
83 ITU’s Radio Regulations 2024 provide the following definitions of the terms ‘FSS’ and ‘MSS’:
“1.21 fixed-satellite service: A radiocommunication service between earth stations at given positions, when one or more
satellites are used; the given position may be a specified fixed point or any fixed point within specified areas; in some cases
this service includes satellite-to-satellite links, which may also be operated in the inter-satellite service; the fixed-satellite
service may also include feeder links for other space radiocommunication services.”
“1.25 mobile-satellite service: A radiocommunication service: between mobile earth stations and one or more space stations,
or between space stations used by this service; or between mobile earth stations by means of one or more space stations.
This service may also include feeder links necessary for its operation.”
Source: https://www.itu.int/hub/publication/r-reg-rr-2024/
84 As per the extant policy regime in India, user terminal stations on moving platforms are also permitted for provisioning of
connectivity subject to compliance to relevant TEC standard(s) and conditions mentioned therein. Source: Unified License
Agreement
85 The Radio Regulations (Edition of 2024) of International Telecommunication Union (ITU) is the foundational text used for
drawing up the NFAP-2025.
Source: https://www.dot.gov.in/static/uploads/2026/02/b110cdc386d3a4e41c8483d7ffd7c410.pdf
902.99 Until a few years ago, Mobile Satellite Service (MSS) could be accessed only
on specialized devices86 often referred to as “satellite phones”. However,
today, MSS satellites can also transmit to and receive from ordinary
smartphones. This means one can communicate using ordinary consumer
mobile phones via satellites. This development represents the evolution of
MSS into mainstream consumer connectivity, moving beyond specialized
satellite phones toward seamless integration with everyday mobile devices.
When MSS is consumed on cellular mobile handsets, it is often referred to
direct-to-device (D2D) service via satellite. In general, D2D service via satellite
is primarily designed to fill coverage gaps in remote areas, oceans, or during
emergencies, making global connectivity more resilient and accessible.
2.100 In many parts of the world, D2D service via satellite has already become
operational. The D2D service via satellite has also been formally recognized
by 3rd Generation Partnership Project (3GPP) through the inclusion of non-
terrestrial networks (NTNs)87 in mobile broadband standards88. Considering
these developments in the use of NTN, TRAI, in its recommendations dated
18.09.2024 on the Framework for Service Authorisations to be Granted Under
the Telecommunications Act, 2023, noted that “with the technological
developments taking place it is now possible for the Access Service providers
86 The traditional satellite phones had specialized hardware and appearance as outlined below:
(a) Prominent Antennas: Early and traditional satphones are instantly recognizable by their large, often retractable or external
antenna systems, necessary to catch signals from satellites hundreds or thousands of miles away.
(b) Ruggedized Design: They were designed for extreme conditions, built to be water-, shock-, and dust-resistant for explorers,
sailors, and military personnel.
(c) Size and Weight: Early models were significantly larger and heavier than contemporary mobile phones, often compared to
"bricks" or luggage, though they have since become more portable.
87 As per 3GPP, non-terrestrial networks (NTN) are networks or segments of networks that use either Uncrewed Aircraft Systems
(UAS) operating typically between 8 and 50 km altitudes, including High Altitude Platforms (HAPs) or satellites in different
constellations to carry a transmission equipment relay node or a base station.
Source: https://www.3gpp.org/technologies/ntn-overview
88 3rd Generation Partnership Project (3GPP) has included NTNs in its mobile broadband standards. These standards define a
technical framework for the interoperability between terrestrial and non-terrestrial systems.
The integration of non-terrestrial networks with terrestrial networks by 3GPP is, essentially, aimed at providing ubiquitous
connectivity.
91to deliver the mobile services through Non-Terrestrial Networks (NTNs). It will
complement the terrestrial networks in those areas where the terrestrial
networks have not reached.” Accordingly, the Authority, through the
recommendations dated 18.09.2024, recommended that “for providing the
service, use of Non-Terrestrial Network (NTN) shall be permitted to the Access
Service authorised entity and Unified Service authorised entity.” DoT has
accepted this recommendation and through the draft Telecommunications
(Authorisation for Provision of Main Telecommunication Services) Rules, 2025,
DoT has proposed the following provisions under Unified Service authorisation
and Access Service authorisation:
(a) Provision under Unified Service authorisation: An authorised entity
holding a unified service authorisation may provide the
telecommunication services specified under sub-rule (2) or sub-rule (3),
as the case may be, through wireline or wireless terrestrial networks,
satellite networks including non-terrestrial networks and GMPCS
networks, or submarine networks.
(b) Provision under Access Service authorisation: An authorised entity
holding an access service authorisation may provide the
telecommunication services specified under sub-rule (2) or sub-rule (3),
as the case may be, through wireline or wireless terrestrial networks,
satellite networks including non-terrestrial networks and GMPCS
network, or submarine networks.
2.101 As mentioned above, while seeking recommendations from TRAI, DoT,
through its letter dated 17.10.2024 conveyed, inter-alia, that “keeping in view
the increasing use of NTN (Non terrestrial networks) including satellite
communication networks in provisioning of FSS (Fixed Satellite Services)
including VSAT services and MSS (Mobile Satellite Services), TRAI may
92consider an authorisation for satellite communication network under Section
3(1)(b) of the Telecommunications Act, 2023….” Further, DoT, in its back-
reference dated 03.07.2025 to the TRAI’s recommendations dated
17.02.2025, mentioned about the use of NTN by Unified service or Access
service to provide supplemental coverage services from space.
2.102 As outlined above, D2D service via satellite is, essentially, a form of Mobile
Satellite Service (MSS). It can be delivered by using the spectrum in frequency
bands identified for MSS (such as L-band and S-band), or frequency bands
identified for IMT (such as 600 MHz band, 700 MHz band, 800 MHz band, 900
MHz band, etc.). Hereinafter, the frequency bands identified for IMT shall also
be referred to as “IMT frequency bands”. Further, the spectrum in IMT
frequency bands shall also be referred to as “IMT spectrum”. For permitting
D2D service via satellite by using IMT spectrum, it would normally be
necessary that MSS allocations are formally made in IMT frequency bands
under ITU Radio Regulations, and/ or in National Frequency Allocation Plan
(NFAP). As yet, ITU Radio Regulations have not included MSS allocations in
IMT frequency bands. In the next Word Radiocommunication Conference
(WRC) which will be organized by ITU in November 2027 at Shanghai, the
agenda item 1.1389 will “consider studies on possible new allocations to the
mobile-satellite service for direct connectivity between space stations and
International Mobile Telecommunications (IMT) user equipment to
complement terrestrial IMT network coverage, in accordance with Resolution
253 (WRC-23)”.90
89 Source: https://www.itu.int/en/ITU-R/study-groups/rcpm/Pages/wrc-27-studies.aspx
90 Resolution 253 of WRC-2023 included the following studies:
(a) studies on possible allocations to the MSS in the frequency range between 694/698 MHz and 2.7 GHz, taking into account
the IMT frequency arrangements addressed in the most recent version of Recommendation ITU-R M.1036;
(b) studies on spectrum requirements and on technical, operational and regulatory matters related to the implementation of
the mobile-satellite service for direct connectivity to the IMT user equipment to complement the terrestrial IMT network
coverage,
932.103 In short, WRC-27 will consider new allocations to MSS in IMT frequency bands
in the ITU-Radio Regulations under the agenda item 1.13, as a means of
providing a spectrum management framework for D2D service via satellite by
using the spectrum in IMT frequency bands. Having said that, Article 4.4 of
ITU-Radio Regulations provides that “Administrations of the Member States
shall not assign to a station any frequency in derogation of either the Table
of Frequency Allocations in this Chapter or the other provisions of these
Regulations, except on the express condition that such a station, when using
such a frequency assignment, shall not cause harmful interference to, and
shall not claim protection from harmful interference caused by, a station
operating in accordance with the provisions of the Constitution, the
Convention and these Regulations.”. Therefore, in case it is decided to permit
D2D service via satellite using the spectrum in IMT frequency bands before
ITU makes such an allocation after WRC-27, a satellite system operating in
IMT frequency bands for which there is no allocation in the ITU-Radio
Regulations may do so under the ‘no-interference, no-protection’ provisions
of Article 4.4 of the ITU-Radio Regulations.
2.104 While the matter relating to the use of spectrum in IMT frequency bands for
D2D service via satellite would be decided in WRC-27, some of the countries
such as Australia, Canada, New Zealand, United Kingdom (UK), and United
States of America (USA) have already developed national regulatory
frameworks for enabling D2D service via satellite - under various
(c) studies on sharing and compatibility between incumbent services, including in adjacent frequency bands, ensuring the
protection of incumbent services in accordance with the Radio Regulations;
(d) study on possible technical and operational measures to ensure that the stations in the MSS do not cause harmful
interference to, or claim protection from, stations operating in the mobile service.
94nomenclatures – in select FDD91 bands of IMT in their respective countries.92
In general, these regulatory frameworks permit a commercial partnership
between a terrestrial cellular mobile operator and a satellite operator, under
which, the satellite operator facilitates the terrestrial cellular mobile operator
to provide D2D service via satellite to consumers, especially in remote,
unserved, and underserved areas. The aim of such partnerships is to enable
ubiquitous mobile connectivity to the subscribers of terrestrial mobile
operators. A brief description of the regulatory framework for D2D service via
satellite by the telecom regulators in the USA, Canada, Australia, New
Zealand, and UK is given below:
(a) USA: In 2024, the Federal Communications Commission (FCC), USA,
established a regulatory framework for Supplemental Coverage from
Space (SCS) to enable partnerships between satellite operators and
terrestrial mobile operators to offer ubiquitous connectivity directly to
consumer handsets using spectrum previously allocated only to
terrestrial mobile service.93 In order to allow satellite communications on
the spectrum previously allocated only to terrestrial mobile services, the
FCC modified the US Table of Frequency Allocations to authorize
secondary Mobile Satellite Service (MSS) operations in certain frequency
bands [600 MHz band, 700 MHz band, 800 MHz band, 1850-1915 MHz
and 1930-1995 MHz, and 1915-1920 MHz and 1995-2000 MHz]94. In
91 FDD is an acronym of frequency division duplexing.
92 The European Commission (EC) based on the opinion of Radio Spectrum Policy Group (RSPG) has given a mandate to the
European Conference of Postal and Telecommunications Administrations (CEPT) to study the feasibility and develop
harmonised technical conditions for the use of EU-harmonised frequency bands for the terrestrial provision of electronic
communications services (ECS) also by satellite systems providing Direct-to-Device-IMT (D2D-IMT) connectivity.
Source: https://cept.org/files/1412/ECC(25)059_Annex1_Mandate%20to%20the%20CEPT%20on%20D2D-IMT%20in%20EU-
harmonised%20ECS%20bands.pdf
93 Source: https://docs.fcc.gov/public/attachments/DOC-400678A1.pdf
94 These bands make use of the frequency division duplexing (FDD) scheme in USA.
95these frequency bands, the FCC authorized SCS only where one or more
terrestrial mobile operators, together holding all licenses of the relevant
frequency channel throughout a defined geographically independent
area (GIA)95, lease access to their spectrum rights to a participating
satellite operator. Under the FCC’s SCS framework, satellite operators
and terrestrial mobile operators providing SCS must comply with the
existing satellite and terrestrial rules to avoid harmful interference into
radio astronomy and related services. FCC also prescribed an entry
criteria that satellite operators must meet to operate satellites in the SCS
bands.
(b) Canada: In 2025, the Innovation, Science and Economic Development
(ISED), Canada, established its regulatory framework for Supplemental
Mobile Coverage by Satellite (SMCS) by leveraging satellite technology
to supplement terrestrial mobile networks.96 ISED modified the Canadian
Table of Frequency Allocation (CTFA) to add a new secondary MSS
allocation for the provision of SMCS on a no-protection, no-interference
basis in 600 MHz band, 700 MHz band, 800 MHz band, 1850-1915 MHz
paired with 1930-1995 MHz, 1710-1755 MHz paired with 2110-2155
MHz, and 1755-1780 MHz paired with 2155-2180 MHz).
(c) Australia: In 2024, the Australian Communications and Media Authority
(ACMA) issued a regulatory guidance for the operation of IMT satellite
95 GIAs in USA: (1) the contiguous United States (CONUS); (2) Alaska; (3) Hawaii; (4) American Samoa; (5) Puerto Rico/U.S.
Virgin Islands; and (6) Guam/Northern Mariana Islands
96 Innovation, Science and Economic Development Canada, “Decision on a Policy, Licensing and Technical Framework for
Supplemental Mobile Coverage by Satellite,” SMSE-001-25, February 2025
The decision is available at the following URL:
https://ised-isde.canada.ca/site/spectrum-management-telecommunications/en/learn-more/key-
documents/consultations/decision-policy-licensing-and-technical-framework-supplemental-mobile-coverage-satellite
96direct-to-mobile (D2M) service.97 The salient points of the regulatory
guidance for IMT satellite D2M service issued by ACMA are given below:
(a) IMT satellite D2M services must operate through collaboration
between a satellite operator, and an existing terrestrial IMT licenses
(i.e. a mobile network operator already holding spectrum rights).
(b) IMT satellite D2M services are practical only under Australia-wide
spectrum licenses. Suitable spectrum bands identified are 700 MHz
band, 800 MHz band, 850/ 900 MHz band, and 2.5 GHz band. These
frequency bands are already licensed to mobile network operators
and support frequency division duplexing (FDD), which is critical
for IMT satellite D2M operations.
(c) Satellite operators and partnering IMT licensees are responsible for
due diligence in ensuring coexistence with other spectrum users,
and minimization of interference, especially outside spectrum-
licensed areas.
(d) New Zealand: In New Zealand, Direct-to-Device (D2D) services can be
provided in existing mobile frequency bands under the management
rights framework administered by Ministry of Business, Innovation and
Employment (MBIE). Under this approach, operators are expected to
cooperate and coordinate with each other and with adjacent spectrum
users to manage and prevent potential interference issues98.
97 Australian Communications and Media Authority, “Regulatory Guide: Operation of an IMT Satellite Direct-to-Mobile Service,”
September 2024
The regulatory guide is available at the following URL:
https://www.acma.gov.au/sites/default/files/2025-
05/Regulatory%20guide_Operation%20of%20an%20IMT%20satellite%20direct-to-mobile%20service_0.pdf
98 Source: https://www.rsm.govt.nz/licensing/direct-to-device-licensing
97(e) UK: In February 2026, Ofcom, UK introduced the Wireless Telegraphy
(Direct to Device Satellite Communications) (Exemption) Regulations
202699. The purpose of these regulations is to enable mobile phones to
connect directly to satellites using spectrum already licensed to mobile
network operators (MNOs). This allows users to access connectivity in
areas without terrestrial mobile coverage and during network outages.
These regulations exempt mobile handsets and SIM-enabled devices
from needing individual wireless licences when connecting to authorised
satellite Direct-to-Device (D2D) services. To enable the implementation
of the authorisation framework, Ofcom decided to allow D2D operation
in all frequency division duplex (FDD) and supplementary downlink
(SDL) mobile spectrum bands below 3 GHz. However, Ofcom mentioned
that some bands, including 1.4 GHz and 2.1 GHz would require further
technical analysis and may require consultation prior to authorisation100.
According to Ofcom’s framework, mobile network operators (MNOs)
must apply for a variation of their wireless telegraphy licence to provide
D2D service via satellite. Once a licence variation is approved, the
relevant frequencies are added to the exemption regulations. The
framework also prescribes that the wireless telegraphy apparatus must
not cause or contribute to any undue interference to any wireless
telegraphy, and the wireless telegraphy apparatus must not be airborne.
Further, Ofcom has prescribed band-specific power limits for D2D
satellite unwanted emissions in mobile downlink spectrum.
99 Source:https://www.ofcom.org.uk/siteassets/resources/documents/consultations/category-1-10-weeks/consultation-
enabling-satellite-direct-to-device-services-in-mobile-spectrum-bands/main-documents/statement-the-final-regulations-for-
the-authorisation-of-satellite-direct-to-device-services.pdf
100 https://www.ofcom.org.uk/siteassets/resources/documents/consultations/category-1-10-weeks/consultation-enabling-
satellite-direct-to-device-services-in-mobile-spectrum-bands/main-documents/dec2025/statement---enabling-satellite-direct-
to-device-connectivity-in-mobile-spectrum-bands.pdf
982.105 India exhibits immense geographical diversity. Broadly, it comprises five
regions – (a) the great mountain range, (b) the Indo-Gangetic plains, (c) the
desert region, (d) the southern Deccan peninsula, and (e) the islands. The
Indo-Gangetic plains, and a large part of the southern Deccan peninsula are
fertile and agriculturally productive. The great mountain range has rugged
terrain and high altitude. The desert region is arid with sparse settlements.
From the perspective of population density, the Indo-Gangetic plains and
most part of the southern Deccan peninsula exhibit high population densities;
in comparison, the great mountain range, the desert region, and the islands
have lower population densities. For the sake of convenience, hereinafter, in
the present consultation paper, the great mountain range, the desert region,
and the islands will also be referred to as “remote areas”.
2.106 Even after three decades since the launch of cellular mobile services in India,
the terrestrial coverage of cellular mobile service providers in the rural and
remote areas of the country has not been able to match expectations. Due to
techno-commercial considerations, cellular mobile service providers do not
find it attractive to deploy terrestrial mobile networks in many parts of such
regions. Department of Telecommunications, Ministry of Communications,
Government of India, through the Digital Bharat Nidhi (earlier known as
Universal Service Obligation Fund), supports, inter-alia, universal service
through promoting access to and delivery of telecommunication services in
underserved rural, remote and urban areas.101 It is a continuing effort and is
101 In India, the Indian Telegraph (Amendment) Act, 2003 giving statutory status to the Universal Service Obligation Fund (USOF),
was passed by the parliament in December 2003. The Universal Service Obligation (USO) Fund was established with the
fundamental objective of providing access to "Basic" telegraph services to people in remote and rural areas at affordable and
reasonable prices. Subsequently, the Indian Telegraph (Amendment) Act, 2006 was notified on 29.12.2006 to repeal the
term "Basic" wherein the scope of USO Fund was widened to provide access to telegraph services (including mobile services,
broadband connectivity, and ICT infrastructure creation) in rural and remote areas. As per the information available on the
USOF website, USOF has completed several schemes/ projects such as (a) rural wireline broadband scheme, (b) Amarnath
project, (c) sanchar shakti project, (d) village public telephone project, (e) mobile infrastructure scheme, (f) rural community
phone project, (g) rural direct exchange lines project, (h) solar mobile charging facilities project, (i) mobile tower project.
99essentially a work-in-progress.102 As on date, some parts of rural and remote
areas continue to remain unserved or underserved. In this context, the two
variants of D2D service viz. (a) D2D service via satellite by using MSS
spectrum, and (b) D2D service via satellite by using IMT spectrum may
potentially act as enablers of ubiquitous connectivity in the country,
particularly in such rural and remote areas.
2.107 For convenience, in the present consultation process, the two service types
viz. ‘MSS’ and ‘D2D service via satellite by using MSS spectrum’ would be dealt
up separately. The service type ‘MSS’ would mean the provision of MSS on
specialized satellite phones, while ‘D2D service via satellite by using MSS
spectrum’ would mean the provision of MSS on ordinary cellular mobile
devices.
2.108 While Fixed Satellite Service (FSS) and Mobile Satellite Service (MSS) remain
the mainstream radiocommunication services which are provided via satellite,
considering the potential usefulness of the D2D service via satellite in
providing ubiquitous connectivity in the country, it requires to be deliberated
as to whether the SCNs established by the proposed SCN authorised entities
should also be permitted to be used for providing D2D service via satellite by
using MSS spectrum, and D2D service via satellite by using IMT spectrum. As
spectrum management including interference management related issues
pertaining to D2D service via satellite by using IMT spectrum would be
decided in WRC-27 under Agenda Item 1.13, one may argue that instead of
permitting this service at this stage itself, the matter of permitting D2D service
via satellite by using IMT spectrum should be examined after considering the
102 The focus of the schemes and projects of DBN (USOF) has been mostly to provide telecommunication services in inhabited
uncovered villages.
100outcome of WRC-27. A contrary view could be that considering the global
practices (many countries have already permitted the D2D service via satellite
by using IMT spectrum), and the usefulness of this service in providing
ubiquitous connectivity, this service should be enabled without delay in India;
in any case the ITU regulations including those related to cross-border
interference management emanating from WRC-27 can be made applicable
on the D2D service via satellite by using IMT spectrum in India, prospectively.
One could also argue that in case an enabling policy framework for the D2D
service via satellite by using IMT spectrum is developed at the country level
expeditiously, India could also join a select group of countries which have
launched D2D service via satellite using IMT spectrum, and thereby begin
reaping the benefits of this new service.
2.109 In this context, the Authority solicits inputs of stakeholders on the following
set of questions:
Issues for Consultation:
Q9. Which of the following services should be permitted to be
provided by using the SCNs established by the proposed SCN
authorised entities:
(a) Fixed Satellite Service (FSS);
(b) Mobile Satellite Service (MSS);
(c) Direct-to-Device (D2D) Service via satellite by using MSS
spectrum;
(d) Direct-to-Device (D2D) Service via satellite by using IMT
spectrum?
Kindly provide a detailed response with justification.
101Q10. Whether D2D Service via satellite by using IMT spectrum
should be permitted at this stage itself, or should this matter
be examined after considering the outcome of WRC-2027?
Kindly provide a detailed response with justification.
2.110 With respect to the usage of spectrum under the proposed SCN authorisation,
the Authority has taken note of the following aspects:
(a) A typical satellite communication network requires spectrum in two
major types of links viz. feeder link and user link. For delivering bi-
directional telecommunication services (such as voice telephony,
internet access etc.), both feeder link and user link are configured in
duplex mode so that data can flow to the satellite and from the satellite
at the same time. This is, generally, achieved by using different
frequency bands for uplink and downlink to avoid interference.
Satellite
Feeder link (UL)
User link (DL)
User link (UL)
Feeder link (DL)
Gateway User Terminals
Figure 2.5: Main Communication Links in Satellite
Communication Networks
(b) DoT has envisaged that an entity holding the proposed SCN
authorisation would have the following options for accessing spectrum:
102(i) Option#1: The SCN authorised entity may seek the assignment of
spectrum under the provisions of Section 4 of the
Telecommunications Act, 2023 from the Central Government.
(ii) Option#2: The SCN authorised entity may enter into an agreement
with a service authorised entity (“partnering entity”) to utilize the
spectrum assigned to such partnering entity.
(c) Potentially, Option#1 and Option#2 as mentioned above, could be
applied on the feeder link, and the user link separately. For instance, the
SCN authorised entity may prefer to seek assignment of satellite
spectrum for the feeder link from the Central Government (i.e. Option#1
for the feeder link) and enter into an agreement with the partnering
entity for utilizing the spectrum for the user link held by the partnering
entity (i.e. Option#2 for the user link).
2.111 Based on the above, for the usage of spectrum by the proposed SCN
authorised entities, prima facie, there could be four combinations from the
standpoint of holding spectrum for the feeder link, and the user link on SCNs,
as outlined below:
Combination Spectrum for the feeder Spectrum for the user
No. link held by - link held by -
1 SCN authorised entity SCN authorised entity
Partnering entity
2 SCN authorised entity
(service provider)
Partnering entity
3 SCN authorised entity
(service provider)
Partnering entity Partnering entity
4
(service provider) (service provider)
1032.112 At this stage, it requires to be deliberated as to which of the afore-mentioned
combinations should be permitted at the SCNs established by the proposed
SCN authorised entities. One may argue in support of the assignment of
spectrum to the proposed SCN authorised entities for the feeder link only from
the perspective that SCN authorised entities would deploy gateway earth
station(s) only and would not serve end users directly. The supporters of the
assignment of spectrum for both the feeder link as well as the user link could
argue that the proposed SCN authorisation would serve its intended purpose
only if SCN authorised entities are made eligible to seek assignment of
spectrum for both the feeder link as well as the user link - only then the
service authorised entities, intending to provide satellite-based
communication services, would be able to focus on provisioning of services
without themselves establishing a satellite communication network or
acquiring satellite spectrum from the Central Government.
2.113 In this context, the Authority solicits inputs from stakeholders on the following
question:
104Issue for Consultation:
Q11. From the perspective of holding spectrum for the feeder link
and the user link on SCNs, which of the following combinations
should be permitted at the SCNs established by the proposed
SCN authorised entities:
Combination Spectrum for the feeder Spectrum for the
No. link held by - user link held by -
SCN authorised
1 SCN authorised entity
entity
Partnering entity
2 SCN authorised entity
(service provider)
Partnering entity SCN authorised
3
(service provider) entity
Partnering entity Partnering entity
4
(service provider) (service provider)
Kindly provide a detailed response with justification.
2.114 As mentioned above, the type of user terminals determines as to whether the
service is FSS or MSS. In general, if the user terminal is fixed103, the service
falls under the FSS category; if the user terminal is mobile, the service falls
under the MSS category. As a special case of MSS, if the user terminal is an
ordinary cellular mobile device (smartphone etc.), the service would fall under
the category of D2D service via satellite.
103 As per the extant policy regime in India, user terminal stations on moving platforms are also permitted for provisioning of
connectivity subject to compliance to relevant TEC standard(s) and conditions mentioned therein. Source: Unified License
Agreement
1052.115 As far as the usage of spectrum in the user link of SCNs is concerned, the
following scenarios would apply:
(a) If the SCN established by the proposed SCN authorised entity is to be
used for providing FSS, the FSS spectrum would be used in the user link
of the SCN.
(b) If the SCN established by the proposed SCN authorised entity is to be
used for providing MSS, the MSS spectrum would be used in the user
link of the SCN.
(c) If the SCN established by the proposed SCN authorised entity is to be
used for providing D2D service via satellite by using MSS spectrum, the
MSS spectrum would be used in the user link of the SCN.
(d) If the SCN established by the proposed SCN authorised entity is to be
used for providing D2D service via satellite by using IMT spectrum, the
IMT spectrum would be used in the user link of the SCN.
2.116 In the present consultation process, FSS spectrum would mean the spectrum
in the frequency bands allocated for FSS; MSS spectrum would mean the
spectrum in the frequency bands allocated for MSS.
2.117 As far as the feeder link is concerned, the feeder link for both FSS and MSS
uses FSS spectrum. Accordingly, FSS spectrum would be used in the feeder
link of SCNs regardless of whether the SCNs established by the proposed SCN
authorised entities are to be used for providing FSS or MSS.104 As D2D service
104 In the ITU-Radio Regulations, several frequency bands allocated for FSS such as 5091 - 5150 MHz, 5150 - 5250 MHz, 6700 –
7075 MHz, 15.43 – 15.63 GHz, 19.3 - 19.7 GHz, and 29.1 - 29.5 GHz have specifically been identified for feeder links of the
non-geostationary satellites in MSS.
Source: Footnotes 5.444A, 5.447A, 5.458B, 5.511A, 5.523B, and 5.541A of the ITU-Radio Regulations
As per the ITU-Radio Regulations, the term ‘feeder link’ has been defined as below:
“feeder link: A radio link from an earth station at a given location to a space station, or vice versa, conveying information for
a space radiocommunication service other than for the fixed-satellite service. The given location may be at a specified fixed
point, or at any fixed point within specified areas.”
106via satellite using MSS spectrum, and D2D service via satellite using IMT
spectrum are, essentially, variants of MSS, FSS spectrum would be used in
the feeder link of the SCN in such cases also.
2.118 The following table lists the type of spectrum to be used in SCNs in the feeder
link and the user link of SCNs for various service types:
Type of service to be
Type of spectrum to be used in SCN
provided to the end
In the feeder link In the user link
users by using SCNs
FSS FSS FSS
MSS FSS MSS
D2D service via satellite
FSS MSS
using MSS spectrum
D2D service via satellite
FSS IMT spectrum
using IMT spectrum
spectrumspectrum
2.119 In short, three types of frequency spectrum could be used in SCNs established
by the proposed SCN authorised entities:
(a) FSS spectrum
(b) MSS spectrum
(c) IMT spectrum
2.120 As outlined above, prior to the enactment of the Telecommunications Act,
2023, the Central Government was assigning the spectrum in C-band, Ku-
band and Ka-band for the provision of GSO-based FSS (mainly for VSAT-based
107CUG applications). Further, for the provision of GSO-based MSS, the Central
Government was assigning the spectrum in L-band (for the user link) and C-
band (for the feeder link).
2.121 After the enactment of the Telecommunications Act, 2023, DoT sent a
reference dated 11.07.2024 to TRAI. Through the reference dated
11.07.2024, DoT expressed that “[k]eeping in view the provisions of Section
4 and the First Schedule of the Telecommunications Act-2023, in terms of
Section 11(1)(a) of TRAI Act 1997, TRAI is requested to provide its
recommendations on terms and conditions of spectrum assignment including
spectrum pricing while accounting for level playing field with terrestrial access
services for the following satellite-based communication services:
i. NGSO based Fixed Satellite Services providing data communication and
Internet services. In its recommendations, TRAI may take into account
services provided by GSO-based satellite communication service
providers.
ii. GSO/ NGSO based Mobile Satellite Services providing voice, text, data,
and internet services.”
2.122 With respect to DoT’s reference dated 11.07.2024, TRAI sent its
recommendations on ‘Terms and Conditions for the Assignment of Spectrum
for Certain Satellite-Based Commercial Communication Services’ dated
09.05.2025105. In line with the DoT’s request106 through the reference dated
105 TRAI’s recommendations dated 09.05.2025 may be accessed at the following URL:
https://trai.gov.in/sites/default/files/2025-05/PR_No.36of2025.pdf
106 The relevant paragraph of the DoT’s reference dated 11.07.2024 is reproduced below:
“4. Keeping in view the provisions of Section 4 and the First Schedule of the Telecommunications Act-2023, in terms of
Section 11(1)(a) of TRAI Act 1997, TRAI is requested to provide its recommendations on terms and conditions of spectrum
assignment including spectrum pricing while accounting for level playing field with terrestrial access services for the following
satellite-based communication services:
iii. NGSO based Fixed Satellite Services providing data communication and Internet services. In its recommendations, TRAI
may take into account services provided by GSO-based satellite communication service providers.
10811.07.2024, TRAI provided its recommendations on both GSO-based MSS,
and NGSO-based MSS; with respect to FSS, the recommendations were
mainly focussed on NGSO-based FSS. As far as GSO-based FSS107 is
concerned, TRAI provided its recommendations on spectrum charges only; a
policy framework for the assignment of spectrum for GSO-based FSS already
existed.
2.123 As far as the assignment of IMT spectrum is concerned, the Central
Government has, since the year 2012, been assigning IMT spectrum through
the process of auction to access service providers only. Recently, on
24.02.2026, TRAI, through the recommendations on ‘the Auction of Radio
Frequency Spectrum in the Frequency Bands Identified for International
Mobile Telecommunications (IMT)’, has recommended to the Central
Government that the eligibility condition for the participation in the
forthcoming auction for IMT should be the authorisation to provide access
service.
2.124 With respect to the issue relating to the assignment of spectrum to any SCN
authorised entity for the feeder link and/ or the user link of its SCN, it would
require to be deliberated as to which type of spectrum may be assigned to it.
Prima facie, FSS spectrum and MSS spectrum may potentially be assigned to
the SCN authorised entity. As far as IMT spectrum is concerned, it is
noteworthy that, at present, the cellular mobile telephone service, which is
provided through IMT spectrum is the flagship service of telecom service
sector. The cellular mobile telephone service is consumed by a vast mass of
iv. GSO/ NGSO based Mobile Satellite Services providing voice, text, data, and internet services.”
107 While seeking recommendations on NGSO based FSS, DoT expressed that “[i]n its recommendations, TRAI may take into
account services provided by GSO-based satellite communication service providers.”
109population108 on ordinary cellular mobile devices (such as smartphones). For
the provision of cellular mobile telephone service in India, an entity must
obtain access service authorisation under Unified License. As per the extant
policy regime in the country, the Central Government assigns IMT spectrum
to only those entities which are authorised to provide access service; upon
acquiring IMT spectrum, such entities are required to fulfil roll-out obligations
also. Based on these considerations, it could be argued that, for the purpose
of provisioning D2D service via satellite by using IMT spectrum to end users
through SCN, it might not be appropriate to make the proposed SCN
authorised entities eligible to seek the assignment of IMT spectrum from the
Central Government.
2.125 In case it is decided to make the proposed SCN authorised entities eligible for
seeking the assignment of FSS spectrum and/ or MSS spectrum from the
Central Government, a policy and regulatory framework for the assignment of
FSS spectrum and/ or MSS spectrum to the proposed SCN authorised entities
may require to be established.
2.126 As mentioned above, DoT, through its letter dated 07.10.2025, has stated,
inter-alia, that “if an entity holding a SCN (Satellite Communication Network)
authorisation seeks assignment of spectrum for use that falls within the scope
of any of the entries of the First Schedule, it can be assigned spectrum
through administrative method.” Accordingly, it would be necessary to
ascertain the intended usage before assigning FSS spectrum and/ or MSS
spectrum to SCN authorised entities. As the end users would belong to service
authorised entities and not SCN authorised entities, it could be argued that
108 As on 31st January 2026, there were 1,250.89 million cellular mobile telephone subscribers in the country.
Source: https://trai.gov.in/sites/default/files/2026-03/PR_No.39of2026.pdf
110prior to assigning FSS spectrum and/ or MSS spectrum to SCN authorised
entities, the information on service authorised entity(ies) and the intended
usage of the spectrum by them is obtained from SCN authorised entities.
Prima facie, the eligibility criteria for seeking FSS spectrum and/ or MSS
spectrum by SCN authorised entities on administrative basis would be the
end-usage of the spectrum by the service authorised entities (which seek
SCNaaS from SCN authorised entity) should fall in one of items under
Schedule I of the Telecommunications Act, 2023.
2.127 In this context, the Authority solicits inputs from stakeholders on the following
set of questions:
Issues for Consultation:
Q12. Which of the following types of spectrum should be assigned
to the proposed SCN authorised entities:
(a) Spectrum in the frequency bands allocated for FSS
(b) Spectrum in the frequency bands allocated for MSS
(c) Any other?
Kindly provide a detailed response with justification.
Q13. What should be the broad policy and regulatory framework for
the assignment of FSS spectrum and/ or MSS spectrum to the
proposed SCN authorised entities? Specifically, -
(a) NGSO-based FSS and GSO/ NGSO-based MSS: Whether in
respect of NGSO-based FSS and GSO/ NGSO-based MSS,
TRAI’s recommendations dated 09.05.2025 on ‘Terms and
Conditions for the Assignment of Spectrum for Certain
Satellite-Based Commercial Communication Services’ to
DoT (read with the TRAI’s response dated 08.12.2025 to
111DoT’s back-reference dated 12.11.2025) should be made
applicable to SCN authorised entities with necessary
modifications? If yes, what modifications would be
required in the terms and conditions for the assignment
of spectrum for NGSO-based FSS and GSO/ NGSO-based
MSS? If no, what should be the terms and conditions for
this purpose?
(b) GSO-based FSS: Whether the terms and conditions for the
assignment of spectrum to SCN authorised entities for
GSO-based FSS should be analogous to those
recommended by TRAI for NGSO-based FSS and GSO/
NGSO-based MSS through its recommendations on ‘Terms
and Conditions for the Assignment of Spectrum for
Certain Satellite-Based Commercial Communication
Services’ dated 09.05.2025 (read with the TRAI’s
response dated 08.12.2025 to DoT’s back-reference dated
12.11.2025) with necessary modifications? If yes, what
modifications would be required for GSO-based FSS? If
no, what should be the terms and conditions for this
purpose?
Kindly provide a detailed response with justification.
Q14. What should be the eligibility conditions for seeking
administrative assignment of FSS spectrum and/or MSS
spectrum by the proposed SCN authorised entities? Kindly
provide a detailed response with justification.
Q15. Whether there are any other inputs or suggestions relevant to
the assignment of FSS spectrum and/ or MSS spectrum to the
112entities holding the proposed SCN authorisation? Kindly
provide a detailed response with justification.
2.128 For the sake of convenience, the table, under para 2.111 above, which depicts
four possible combinations for holding spectrum for the feeder link and the
user link at SCNs is being reproduced below:
Combination Spectrum for the feeder Spectrum for the user
No. link held by - link held by -
1 SCN authorised entity SCN authorised entity
Partnering entity
2 SCN authorised entity
(service provider)
Partnering entity
3 SCN authorised entity
(service provider)
Partnering entity Partnering entity
4
(service provider) (service provider)
2.129 In case based on the present consultation process, it is decided to permit any
of the combination No. 2, 3 and 4 mentioned above under the proposed SCN
authorisation, an SCN authorised entity would require to enter into an
agreement/ arrangement with a service authorised entity (“partnering entity”)
to utilize the spectrum assigned to such partnering entity; using the spectrum
of the partnering entity, the SCN authorised entity would provide SCNaaS to
the partnering entity only. Apparently, it would be necessary to establish a
policy and regulatory framework for enabling such an agreement/
arrangement between SCN authorised entities and service authorised entities.
2.130 Prima facie, the policy and regulatory framework for this purpose would be
somewhat nuanced in case of D2D service via satellite (as compared to the
113policy and regulatory framework for FSS and MSS). Accordingly, the policy
and regulatory framework for the D2D service via satellite would be taken up
in the subsequent section.
2.131 In this context, the Authority solicits the views of stakeholders on the following
questions:
Issues for Consultation:
Q16. In case it is decided to permit the proposed SCN authorised
entity to utilize the FSS spectrum and/ or MSS spectrum
assigned to a service authorised entity (“partnering entity”)
for the purpose of providing SCNaaS to the partnering entity -
whether there is a need to establish a policy and regulatory
framework for enabling the SCN authorised entity to enter into
an agreement/ arrangement with the partnering entity to
utilize FSS spectrum and/ or MSS spectrum assigned to such
partnering entity for the purpose of providing SCNaaS to the
partnering entity?
(i) If yes, what should be the terms and conditions under
such a framework?
(ii) If no, in what manner such agreements/ arrangements
should be enabled and regulated?
Kindly provide a detailed response with justification.
Q17. Whether there are any other inputs or suggestions relevant to
the agreement/ arrangement between the proposed SCN
authorised entities and service authorised entities
(“partnering entities”) to utilize the FSS spectrum and/ or MSS
114spectrum assigned to such partnering entities? Kindly provide
a detailed response with justification.
2.132 In case, based on the present consultation process, it is decided to permit
‘D2D service via satellite by using MSS spectrum’ through the SCNs
established by the proposed SCN authorised entities, a policy and regulatory
framework for this purpose may require to be established. Specifically, the
regulatory restrictions applicable on the use of satellite phones may have to
be made applicable on ordinary cellular mobile devices (such as smartphones
etc.) as well. An eco-system related issue may also arise with respect to
making available cellular mobile devices equipped with chipsets and antennas
capable of satellite connectivity.
2.133 In this context, the Authority solicits inputs from stakeholders on the following
question:
Issue for Consultation:
Q18. In case it is decided to permit D2D service via satellite by using
the spectrum in the frequency bands allocated for MSS such as
L-band and S-band, whether there is a need to establish a
policy and regulatory framework for enabling and regulating
such a service? If yes, kindly suggest a broad framework for
this purpose and the key terms and conditions to be included
under such a framework? Kindly provide a detailed response
with justification.
2.134 The use of IMT spectrum for satellite-based D2D service introduces both
interference and regulatory challenges. Therefore, in case, based on the
115present consultation process, it is decided to permit ‘D2D service via satellite
by using IMT spectrum’ through the SCNs established by the proposed SCN
authorised entities, several aspects including those related to spectrum
management and interference management would require to be examined.
In this regard, it would be essential to establish a robust mechanism for
interference management and to enable cooperation among operators to
ensure harmonious spectrum usage. Besides, it would also require to be
ascertained as to which frequency bands (whether FDD bands, TDD bands,
or both type of bands) should be permitted to be used for this purpose.
2.135 At present, for the provision of Access Service109, the country has been divided
into 22 licensed service areas (LSAs) - 19 Telecom Circles and three Metro
Areas (Delhi, Mumbai and Kolkata).110 In other words, the licensed service
area for Access Service is at Metro Area/ Telecom Circle level. The Central
Government assigns the access spectrum111 (IMT spectrum) to access service
providers (ASPs) through auction – separately in each of the 22 LSAs. As a
result, any specific frequency range of IMT spectrum may not necessarily be
assigned to a particular ASP in each of the 22 LSAs. For example, the
frequency block of 1710.1-1730.1 MHz paired with 1805.1-1825.1 MHz [20
109 As per the extant Unified License Agreement, “ACCESS SERVICES (AS) means telecommunication service provided to
subscribers by means of a telecommunication system for the conveyance of voice or non-voice messages through wired or
wireless telegraphy on the network of the Access Service Provider. The subscriber shall have identity indicated by a number
or any other address approved by the Licensor. The subscriber shall be registered and authenticated by the network of Access
Service Provider. Access Service does not cover broadcasting of any voice or non-voice messages. However, Cell Broadcast is
permitted only to the subscribers of the service. Scope of Service provided under the Access Service Authorization shall be
governed by the terms and conditions as provided in Chapter VIII.“
110 Apart from the three Metro Areas, there are following 19 Telecom Circles in India for the provision of Access Service:
Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh,
Maharashtra, North East, Odisha, Punjab, Rajasthan, Tamilnadu, Uttar Pradesh (East), Uttar Pradesh (West), and West Bengal
111 As per the extant Unified License Agreement, “ACCESS SPECTRUM means the Radio Frequency Spectrum allotted for use
to carry voice or non-voice messages from subscriber terminal to the Base Station/designated point of aggregation.”
At present, the Central Government assigns the Access Spectrum through auction in frequency bands identified for IMT in the
National Frequency Allocation Plan (NFAP).
116MHz paired spectrum] is held by three different ASPs in Punjab LSA, Rajasthan
LSA and Gujarat LSA.
2.136 The licensed service area for satellite-based telecommunication services (such
Commercial VSAT CUG service) is, at present, at the national level. Under the
extant policy regime, the Central Government has been assigning the FSS
spectrum and MSS spectrum to satellite-based telecommunication service
providers on pan-India basis. Considering the nature of satellite
communication networks, prima facie, it would be appropriate to keep the
service area of SCN authorisation at the national level.
2.137 In case, D2D service via satellite by using IMT spectrum is permitted in the
country, an issue may arise with respect to interference management not only
at the national borders (with the neighbouring countries) but also at the
borders of telecom circles/ metro areas. The issue of interference management
at the borders of telecom circles/ metro areas would arise in case the partnering
entity of the SCN authorised entity holds the relevant IMT frequency channel
(i.e. the IMT frequency channel of the partnering entity to which SCN
authorised entity intends to utilize at its SCN for the purpose of SCNaaS) in only
a few LSAs and not at the national level; in the remaining LSAs, other ASPs
hold the relevant frequency channel.
2.138 This issue came up for deliberation in other countries as well. With a view to
address the concern of interference management within the country arising out
of the provisioning of D2D service via satellite by using IMT spectrum, the FCC
in USA and ACMA in Australia have devised enabling regulatory mechanism/
guidance as outlined below:
117(a) USA: In the year 2023, the FCC, USA issued the Notice of Proposed
Rulemaking (NPRM) in the matter of ‘Single Network Future:
Supplemental Coverage from Space’ for public comment.112 In the NPRM
on Supplemental Coverage from Space (SCS), the FCC stated, inter-alia,
that “[i]n this Notice of Proposed Rulemaking (Notice), we propose a
novel framework for SCS that would provide coverage to a terrestrial
mobile service licensee’s subscribers operating in underserved and/or
unserved areas within a terrestrial mobile service licensee’s license area,
only through a collaboration between an existing NGSO operator and a
terrestrial mobile service licensee, involving transmissions between space
stations and mobile end-user devices on spectrum that is currently
allocated and licensed exclusively on a terrestrial basis. Specifically, given
the complexity of this undertaking, and particularly due to technical
considerations, we confine our initial proposal to spectrum and locations
where (1) there is only a single terrestrial entity that holds, either directly
or indirectly, all co-channel licenses for the relevant frequencies in a given
geographically independent area (GIA), such as CONUS; and (2) there are
no primary, non-flexible-use legacy incumbent operations (whether
federal or nonfederal) in the band. As discussed below, we also seek
comment on potentially extending our proposed framework to a range of
alternative licensing scenarios that do not currently meet our proposed
entry criteria, including instances where multiple co-channel terrestrial
licensees are authorized in a given GIA.” After the public consultation on
the matter, the FCC issued its report and order dated 22.02.2024 on
Single Network Future: Supplemental Coverage from Space 113. Through
112 Source: https://docs.fcc.gov/public/attachments/FCC-23-22A1.pdf
113 Source: https://docs.fcc.gov/public/attachments/DOC-400678A1.pdf
118the report and order dated 22.02.2024, the FCC stated that “we authorize
SCS only where one or more terrestrial licensees—together holding all
licenses on the relevant channel throughout a defined geographically
independent area—lease access to their spectrum rights to a participating
satellite operator, whose part 25 license reflects these frequencies and
the geographically independent area in which they will offer SCS.”
(b) Australia: Through the regulatory guide on ‘Operation of an IMT satellite
direct-to-mobile service’ (September 2024)114, ACMA stated that“[g]iven
the broad coverage provided by satellite services, our view is that
operation of an IMT satellite direct-to-mobile service in Australia is only
practical where there is an Australia-wide spectrum licence. In these
bands, a satellite operator providing an IMT satellite direct-to-mobile
service for all practical purposes will only need to coordinate with a single
licensee responsible for managing coordination of services within the
licensed band across Australia. This means that there are no geographic
boundary issues to manage or multiple licensees for the satellite operator
to consider.”
2.139 In the context of LSA-wise assignment of IMT spectrum to access service
providers in India, a question arises as to what regulatory framework should
be established for ensuring interference free operation of D2D service via
satellite by using IMT spectrum within the country. One may take a
conservative approach and argue that the SCNs established by SCN
authorised entities should be permitted to be used to provide D2D service via
satellite by using IMT spectrum only if a single partnering entity (access
114 Source: https://www.acma.gov.au/publications/2024-09/guide/regulatory-guide-operation-imt-satellite-direct-mobile-service
119service provider) holds the relevant IMT frequency channel in all the 22 LSAs
of the country and agrees to permit the usage of its IMT frequency channel
by the SCN authorised entity at its SCN for the purpose of providing SCNaaS.
On the other hand, one may contend that the SCNs established by SCN
authorised entities should be permitted to be used to provide D2D service via
satellite by using IMT spectrum if one or more access service providers –
together holding the assignment of the relevant IMT frequency channel across
all 22 licensed service areas of the country – agree to permit the usage of
their IMT frequency channel by the SCN authorised entity at its SCN for the
purpose of providing SCNaaS.
2.140 In this context, the Authority solicits inputs from stakeholders on the following
question:
Issue for Consultation:
Q19. In case with a view to enable D2D service via satellite using
IMT spectrum, it is decided to permit the proposed SCN
authorised entity to utilize IMT spectrum assigned to a service
authorised entity (“partnering entity”) for the purpose of
providing SCNaaS to the partnering entity, -
(a) whether there is a need to establish a policy and
regulatory framework for enabling the SCN authorised
entity to enter into an agreement/ arrangement with the
partnering entity to utilize IMT spectrum assigned to
such partnering entity for the purpose of providing
SCNaaS to the partnering entity? If yes, what should be
the terms and conditions under such a framework? If no,
120in what manner such arrangements should be enabled
and regulated?
(b) Which frequency bands identified for IMT should be
considered for this purpose? Specifically, whether only
FDD-based frequency bands should be considered?
(c) For the frequency bands identified for IMT where D2D is
decided to be permitted, whether the National
Frequency Allocation Plan (NFAP) should be modified to
include MSS on a secondary basis? If yes, kindly furnish
your suggestion for the proposed modification(s).
(d) To mitigate the issues related to cross-border
interference, whether any other condition in addition to
Article 4.4 of the ITU-Radio Regulations is required to be
made applicable?
(e) What regulatory framework should be established for
ensuring interference-free operation of D2D service via
satellite by using IMT spectrum within the country?
Specifically, which of the following methods should be
followed:
(i) The SCNs established by SCN authorised entities
should be permitted to be used to provide D2D
service via satellite by using IMT spectrum only if a
single partnering entity (access service provider)
holds the relevant IMT frequency channel in all the
22 LSAs of the country and agrees to permit the
usage of its IMT frequency channel by the SCN
authorised entity at its SCN for the purpose of
providing SCNaaS; or
121(ii) The SCNs established by SCN authorised entities
should be permitted to be used to provide D2D
service via satellite by using IMT spectrum if one or
more access service providers – together holding
the assignment of the relevant IMT frequency
channel across all 22 licensed service areas of the
country – agree to allow the usage of their IMT
frequency channel by the SCN authorised entity at
its SCN for the purpose of providing SCNaaS; or
(iii) Any other method?
Kindly provide a detailed response with justification.
Q20. Whether there are any other inputs or suggestions with
respect to the delivery of D2D services via satellite through
SCNs established by the proposed SCN authorised entities?
Kindly provide a detailed response with justification.
Q21. Any other inputs or suggestions related to the use of spectrum
on SCNs established by the proposed SCN authorised entities
may be submitted with proper explanation and justification.
2.141 The following chapter examines the issues related to financial conditions and
spectrum charges applicable under the proposed SCN authorisation.
122CHAPTER III: EXAMINATION OF ISSUES RELATED TO
SPECTRUM CHARGES AND OTHER FINANCIAL CONDITIONS
A. Background
3.1. Department of Telecommunications (DoT) vide its letter dated 17.10.2024
requested the Authority to consider an authorisation for Satellite
Communication Network under Section 3(1)(b) of the Telecommunications Act
2023 along with the following aspects:
(a) Terms and conditions relating to such authorisation;
(b) Provision of assignment of spectrum for both feeder link as well as user
link under such authorisation; and
(c) Service area of such authorisation.
3.2. In the said letter dated 17.10.2024, DoT has envisaged that the authorisation
for satellite communication network under Section 3(1)(b) of the
Telecommunications Act 2023 may be used to provide services to entities
authorised under Section 3(1)(a) of the Telecommunications Act, 2023.
3.3. The Authority in its recommendations dated 18.09.2024 on ‘Framework for
Service Authorisations to be granted under the Telecommunications Act, 2023’
provided recommendations on a range of service authorisations, including
‘Satellite-based Telecommunication Service Authorisation’. In the said
recommendation, the Authority examined the existing licensing framework for
provision of satellite-based communication services under the Unified License
regime. As mentioned in the said Recommendations, under the Unified
License, two separate authorisations existed for the provision of satellite-based
communication services, namely Global Mobile Personal Communication by
123Satellite (GMPCS) authorisation and Commercial VSAT Closed User Group
(CUG) authorisation. The GMPCS authorisation permits the authorised entity
to provide, inter alia, satellite-based telephony services and data services,
including public telecommunication services such as public telephony and
public Internet services. The Commercial VSAT CUG authorisation permits the
authorised entity to provide satellite-based data connectivity between various
sites of a user within the territorial boundary of India, i.e., connectivity within
a Closed User Group (CUG), as well as backhaul connectivity to access service
providers. Further, under the scope of the VSAT CUG authorisation, an
authorised entity may, after obtaining an Internet Service Provider (ISP)
license, use the same hub station and VSAT (remote station) infrastructure to
provide Internet services to subscribers; in such cases, the VSAT remote
station may function as a distribution point to provide Internet services to
multiple independent subscribers. The services permitted under the two
authorisations are largely mutually exclusive.
In this regard, the Authority recommended that the scope of the existing
GMPCS service authorisation and Commercial VSAT CUG service authorisation
should be merged into a single authorisation, namely ‘Satellite-based
Telecommunication Service Authorisation’, under the Telecommunications Act,
2023.
3.4. The Authority had also provided its Recommendations dated 17.02.2025 titled
“Terms and Conditions of Network Authorisations to be Granted Under the
Telecommunications Act, 2023”, in which recommendations regarding the
Satellite Earth Station Gateway (SESG) authorisation were also dealt. The
SESG authorised entities were placed under Section 3(1)(b) of the
Telecommunications Act, 2023. The broad scope of the SESG Provider
Authorisation was to provide SESG infrastructure to the entities authorised
124under Section 3(1)(a) of the Telecommunications Act, 2023 and permitted to
use satellite media within the scope of their services. The baseband equipment
to be installed at SESGs was to be owned by the eligible Service Authorised
entity interworking with the SESG Provider authorised entity. However, the
SESG Provider authorised entity was permitted to install the baseband
equipment at its SESGs on behalf of the eligible service authorised entities.
The satellite spectrum (gateway-side spectrum as well as user-side spectrum)
was to be assigned only to the eligible service authorised entities and not to
SESG Provider authorised entities. However, for configuration and provisioning
purposes, the SESG Provider authorised entity was permitted to utilise the
spectrum of its partnering Service Authorised entity on its SESGs. Such
configuration and provisioning were to be carried out on behalf of the
partnering Service Authorised entity, while the right to use the spectrum was
to remain with the partnering Service Authorised entity. The SESG Provider
authorised entity was also permitted to connect its SESGs with its Points of
Presence (PoPs) in India through an optical fibre cable (OFC) system.
3.5. In this regard, the Authority, in its Recommendations on the ‘Terms and
Conditions of Network Authorisations to be Granted Under the
Telecommunications Act, 2023 dated 17.02.2025’, also concluded that
‘Satellite-based Telecommunication Service Authorisation’ as recommended by
the Authority in its recommendation dated 18.09.2024 and the ‘Satellite Earth
Station Gateway (SESG) Authorisation’ as recommended by the Authority in
present recommendations dated 17.02.2025, adequately covered the
permissible options for the delivery of satellite-based telecommunication
services. Accordingly, TRAI stated that “there is no need for introducing any
additional authorisation for satellite communication network under the
Telecommunications Act, 2023, at this stage”. Further, TRAI also stated that
125at the principle level, authorised spectrum should be granted to service
authorised entities only and not to network authorised entities.
3.6. Subsequently, a back reference dated 03.07.2025 was received from DoT on
Recommendations on the Terms and Conditions of Network Authorisations to
be Granted Under the Telecommunications Act, 2023. This inter-alia stated the
following:
“ 4.6 Further, the Telecommunication Act,2023 does not restrict spectrum
assignment solely to entities under section 3(1)(a), and limiting it as such may
constrain future policy flexibility. Allowing the flexibility of obtaining spectrum
by authorised entity either under 3(1)(a) or 3(1)(b) (Service or Network) will
enable regulatory framework to meet the requirement of future network and
evolving technology in this space.
….
4.8 Hence, to avoid the regulatory gap - given that the Government has not
accepted the Satellite-based Telecommunication Service Authorisation under
Section 3(1) (a) - the Government proposes the introduction of a Satellite
Communication Network (SCN) Authorisation under Section 3(1)(b) and
requests TRAI to provide terms and conditions for Satellite Communication
Network (SCN) authorisation including provision of assignment of spectrum for
both feeder link as well as user link under such authorisation.”
3.7. In response to the above, the Authority is of the view that a fresh process of
consultation should be initiated to solicit views of stakeholders on terms and
conditions for Satellite Communication Network (SCN) authorised entities,
including the options of assignment of spectrum for both feeder link or
gateway link (uplink and downlink) as well as user link (uplink and downlink)
under such authorisation as discussed in Chapter II above.
1263.8. Further, DoT vide its letter dated 29.08.2025, requested TRAI to provide its
recommendations under Section 11(1) (a) of the TRAI Act, 1997 on the terms
and conditions for Satellite Communication Network (SCN) authorisation
including provision of assignment of spectrum for both feeder link as well as
user link under such authorisation and service area under such authorisation.
3.9. With respect to the DoT letter dated 29.08.2025, the Authority in a letter dated
22.09.2025 requested DoT to clarify as to whether the assignment of spectrum
to ‘Satellite Communication Network’ is covered under the First Schedule for
the Telecommunications Act, 2023. DoT through the Letter dated 07.10.2025
clarified that an SCN Authorised entity can be assigned spectrum through
administrative method provided the use of spectrum falls within the scope of
any of the entries of the First Schedule.
3.10. Further, based on the information provided by the DoT in the letter dated
07.10.2025 and subsequent discussions in Chapter II, the Satellite
Communication Network Authorisation, envisaged by DoT, could enable an
entity to perform, inter-alia, the following activities:
(a) The authorised entity may obtain the necessary satellite resources (such
as transponder bandwidth) from an authorised satellite operator115.
(b) The authorised entity may establish gateway earth station(s) to
communicate with the satellite.
(c) For establishing feeder links [for communication between gateway earth
stations and satellite(s)] and/ or user links [for communication between
user earth stations and satellite(s)] in its satellite communication
network, the authorised entity may seek assignment of spectrum116 from
115 The satellite operator should have obtained permission from IN-SPACe to enable provisioning of its capacity in India for
providing communication services. [URL: https://www.inspace.gov.in/inspace?id=inspace_authorizations]
116 A relevant extract of Section 4 of the Telecommunications Act, 2023 is given below:
127the Central Government. Alternatively, the authorised entity may enter
into an agreement with a Service Authorised entity, desirous of availing
its satellite communication network (“the partnering entity”) to utilize
the spectrum assigned to such partnering entity for the limited purpose
of providing Satellite Communication Network as a Service (SCNaaS) to
the partnering entity.
(d) The authorised entity may provide SCNaaS to authorised service
providers on commercial terms. For this purpose, the authorised entity
may provide an interface to authorised service providers to enable them
to utilize its satellite communication network.
(e) Under the SCN authorisation, the authorised entity may not provide
telecommunication services directly to users.
3.11. The various options or modes of operations discussed under Chapter II,
specifically at Para 2.110-2.112, including agreements between an SCN
Authorised entity and a Service Authorised entity for provisioning of SCNaaS
to the Service Authorised entity, towards providing satellite-based
communications service viz. FSS or MSS or D2D to the end user by the Service
Authorised entity, will inform the discussion on financial conditions for SCN
authorised entities. The discussion about financial conditions in subsequent
paragraphs pertains to the following categories:
4. (1) The Central Government, being the owner of the spectrum on behalf of the people, shall assign the spectrum in
accordance with this Act, and may notify a National Frequency Allocation Plan from time to time.
(2) Any person intending to use spectrum shall require an assignment from the Central Government.
(3) The Central Government may prescribe such terms and conditions as may be applicable, for such assignment of spectrum,
including the frequency range, methodology for pricing, price, fees and charges, payment mechanism, duration and procedure
for the same.
(4) The Central Government shall assign spectrum for telecommunication through auction except for entries listed in the First
Schedule for which assignment shall be done by administrative process.
128(a) Regulation and treatment of charges transacted between SCN
Authorised entity & Service Authorised entity under service
agreements for provision of SCNaaS by SCN entity to Service entity;
(b) Definition of GR/ApGR/AGR;
(c) Spectrum Charges and payment terms & conditions; and
(d) Other financial conditions including Minimum Equity & Networth
requirements, Entry Fees, Authorisation Fees and payment terms &
conditions, Application processing Fees, Bank Guarantees for SCN
authorisation.
The following section discusses terms & conditions of overall service
agreements between an SCN Authorised entity and a Service Authorised entity,
including the transacted charges between the two, as well as the possible
arrangements for utilisation of spectrum.
B. Service agreements including spectrum utilisation
arrangements between the SCN authorised entities under
section 3(1)(b) and Service authorised entities under
section 3(1)(a)
3.12. In line with the discussion in Chapter II, the proposed SCN Authorised entity
would provide SCNaaS to a Service Authorised entity for the further
provisioning of satellite-based communication services, such as FSS or MSS or
D2D, to end users. As outlined in Chapter II, D2D satellite service is envisaged
as a supplemental coverage service, particularly aimed at remote and far-flung
areas to enable universal connectivity. Furthermore, two variants of D2D
service may be possible, namely:
(a) D2D service via satellite by using MSS spectrum, and
(b) D2D service via satellite by using IMT spectrum.
129In Chapter II, it has been clarified that the service type ‘MSS’ would mean the
provision of MSS on specialized satellite phones, while ‘D2D service via satellite
by using MSS spectrum’ would mean the provision of MSS on ordinary cellular
mobile devices. Essentially, D2D service could be possible using either MSS
Spectrum or IMT spectrum in the User link, with Feeder link being provided
through FSS spectrum.
Q9 and Q10 in Chapter II deal with whether the SCN Authorised entity can use
its network to provide SCNaaS to a Service Authorised entity for further
provisioning of FSS, MSS, D2D services, and whether D2D Service via satellite
by using IMT spectrum should be permitted at this stage itself, or should this
matter be examined after considering the outcome of WRC-2027.
3.13. Based on discussion at Para 2.110 to 2.112, there are the following options for
spectrum utilisation by a SCN Authorised entity for provisioning SCNaaS to a
Service Authorised entity. Q11 in Chapter II also seeks stakeholders’
comments on which or all the options for spectrum assignment & utilisation
should be allowed for the SCNs operated by the SCN Authorised entities. These
options are not mutually exclusive, and these modes of operation could be
existing simultaneously:
Option 1 (Combination 1 of Para 2.111 for provision of FSS/MSS):
The SCN Authorised entity may seek assignment of satellite spectrum under
the provisions of Section 4 of the Telecommunications Act, 2023 from the
Central Government. If an entity holding the proposed SCN authorisation seeks
the assignment of satellite spectrum for any usage that falls within the scope
of any of the entries of the First Schedule of the Telecommunications Act,
2023, it can be assigned such spectrum through administrative method. Under
this scenario of operation, the assignment covers satellite spectrum for both
130feeder link and user link to the SCN Authorised entity for providing SCNaaS to
a Service Authorised entity under Section 3(1)(a). Thus, in this mode of
operation, there is no agreement with the Service Authorised entity for the
purpose of utilisation of satellite spectrum, and the arrangement between the
two only covers provisioning of SCNaaS.
Option 2 (Combination 2 of Para 2.111 for provision of FSS/MSS):
The SCN Authorised entity may be depending on the Service Authorised entity
as a partner to bring in the satellite spectrum required for either the user link
or the feeder link. Under this Option 2, the SCN Authorised entity may prefer
to seek assignment of satellite spectrum for feeder link from the Central
Government, and enter into an agreement with the partnering entity for
utilizing the satellite spectrum for user link held by the partnering entity. Under
this scenario of operation, the satellite spectrum assigned to the partnering
entity is utilised for user link, for provisioning SCNaaS to the partnering entity
under Section 3(1)(a). Thus, in this mode of operation, there is an
arrangement with the Service Authorised entity (partnering entity) for the
purpose of utilisation of satellite spectrum assigned to the partnering entity for
the user link, as well as an overall agreement for provisioning of SCNaaS to
the Service Authorised entity.
Option 3 (Combination 3 of Para 2.111 for provision of FSS/MSS):
Under this option, the SCN Authorised entity may prefer to seek assignment
of satellite spectrum for user Link from the Central Government, and enter into
an agreement with the partnering entity for utilizing the satellite spectrum for
feeder link held by the partnering entity. Under this scenario of operation, the
satellite spectrum assigned to the partnering entity is utilised for the feeder
link, for provisioning SCNaaS to the partnering entity under Section 3(1)(a).
Thus, in this mode of operation, there is an arrangement with the Service
131Authorised entity (partnering entity) for the purpose of utilisation of satellite
spectrum assigned to the partnering entity for the feeder link as well as an
overall agreement for provisioning of SCNaaS to the Service Authorised entity.
Option 4 (Combination 4 of Para 2.111 for provision of FSS/MSS):
The SCN Authorised entity may not seek assignment of satellite spectrum for
any of the links from the Central Government, but enters into an agreement
with a Service Authorised entity (“partnering entity”) under Section 3(1)(a)
intending to avail its satellite communication network, and utilize the satellite
spectrum assigned to such partnering entity for the limited purpose of
providing Satellite Communication Network as a Service (SCNaaS) to the
partnering entity. Under this scenario of operation, the satellite spectrum
assigned to the partnering entity is utilised for both feeder link and user link
to provide SCNaaS to the partnering entity under Section 3(1)(a). Thus, in this
mode of operation, there is an arrangement with the Service Authorised entity
(partnering entity) for the purpose of utilisation of satellite spectrum assigned
to the partnering entity, in both user link and feeder link, as well as an overall
agreement for provisioning of SCNaaS to the Service Authorised entity.
Option 5 (For provision of D2D service using MSS/ IMT Spectrum in
the User Link): As discussed in Chapter II, the Authority is examining the
suitability of recommending the permission to provide satellite based Direct-
to-device (D2D) communications services. The same has been discussed to be
provided using MSS spectrum and/ or IMT spectrum.
1325a (For provision of D2D service using MSS spectrum in the user
link): In this scenario, the SCN Authorised entity may enter an arrangement
with a Service Authorised entity for the purpose of provisioning of SCNaaS to
the service entity, for further provisioning of D2D service by the Service
Authorised entity. Here, the feeder link would utilise satellite spectrum in FSS
bands, assigned to either the SCN Authorised entity or the service entity, as
the case may be. The user link would utilise MSS spectrum (L & S bands),
which again could be assigned to either the SCN Authorised entity or the
service entity, for enabling provision of D2D satellite-based communication
services to the end user. Thus, under this scenario, there is an arrangement
between the SCN authorised entity & Service authorised entity to provide
SCNaaS, which may or may not include provisions for utilising spectrum
assigned to the service entity. The spectrum assignment and utilisation
scenario could be similar to any of the options discussed at Options 1 to 4
above.
5b (For provision of D2D service using IMT spectrum in the User
Link): In this scenario, SCN Authorised entity may enter into an agreement
with the partnering entity, which intends to avail its satellite communication
network, to utilize the IMT spectrum assigned to such partnering entity in the
user link for the limited purpose of providing SCNaaS to the partnering entity,
for further provisioning of D2D service by the partnering Service Authorised
entity. This Service Authorised entity is likely to be an Access Service Provider,
since, currently, IMT spectrum bands for providing access service to
consumers have been acquired by these entities through participating in the
spectrum auctions. Under this scenario of operation, the IMT spectrum
assigned to the partnering entity is utilised for the user link, while the SCN
Authorised entity would use satellite spectrum, either assigned to itself or to
the same partnering entity, for the feeder link. Thus, in this mode of operation,
133there is an arrangement with the Service Authorised entity (partnering entity)
for the purpose of utilisation of IMT spectrum assigned to the partnering entity
in the user link, as well as an overall agreement for provisioning of SCNaaS to
the Service Authorised entity. The spectrum assignment and utilisation
scenario could be similar to any of the Options 1 and 2 discussed above.
3.14. To summarise, under Options 1 to 4, satellite spectrum assigned either to the
SCN Authorised entity or to the Service Authorised entity, as the case may be,
in frequency bands allocated for Fixed Satellite Service (FSS) or Mobile Satellite
Service (MSS) in the National Frequency Allocation Plan (NFAP) will be used
for establishing feeder links and/or user links for the provision of SCNaaS by
SCN Authorised entity and satellite-based telecommunication services by
Service Authorised entity.
Under Option 5a, while the feeder link would utilise satellite spectrum in FSS
bands, assigned to either the SCN Authorised entity or the partnering entity,
as the case may be, the user link would utilise MSS spectrum assigned to either
the SCN Authorised entity or the partnering entity. Under Option 5b, the feeder
link would utilise satellite spectrum in FSS bands, assigned to either the SCN
Authorised entity or the partnering service authorised entity, while the user
link would utilise IMT spectrum assigned to the partnering entity for enabling
provision of D2D satellite-based communication service to end users.
Further, as mentioned above, these options or modes of operation are not
mutually exclusive and could be operational under different arrangements with
partnering entities simultaneously for any given SCN Authorised entity.
3.15. Though there are multiple modes of operation and partnering arrangements
between an SCN and a Service entity, these arrangements and charges
transacted between the SCN Authorised entity and the Service Authorised
134entity (partnering entity) are basically for provision of SCNaaS by SCN
Authorised entity to Service authorised entity and could be represented by a
simple illustration below for financial purposes:
• R denotes the revenue earned by the service authorized entity providing satellite-
based communication services to end users under Section 3(1)(a)
• P (P1 for Option 1,2,3,4 and P2 for Option 5a & 5b) denotes the charges paid by
the partnering Service Authorised entity under section 3(1)(a) to the SCN
Authorised entity under Section 3(1)(b) for providing Satellite Communication
Network as a Service (SCNaaS) and use of network and spectrum in the feeder
link and/or user link (as the case may be)
Figure 3.1: Depiction of arrangement between SCN Authorised
entity & Service Authorised entities
3.16. As depicted in the above figure, the revenue flow in the satellite
communication ecosystem would involve revenue (R) earned from end users
by the Service Authorised entity for the provision of satellite-based
communication services under Section 3(1)(a) of the Telecommunications Act,
2023. The Service Authorised entity (partnering entity), in turn, would pay
certain charges (P1/P2) to the SCN Authorised entity under Section 3(1)(b) for
receiving Satellite Communication Network as a Service (SCNaaS). Under all
options above, the Service Authorised entity earns revenue (R) from the
provision of satellite-based communication services to end users and, in turn,
pays charges (P) to the SCN Authorised entity for provisioning of SCNaaS.
These charges denoted as P1 (for Options 1, 2, 3 & 4) and P2 (for Option 5a
& 5b) represent the charges payable by the Service Authorised entity
135(partnering entity) to the SCN Authorised entity for provisioning of SCNaaS,
including the use of satellite communication network infrastructure and
associated spectrum resources.
3.17. The quantum of such charges (P) could be determined through mutual
agreement(s) between the SCN Authorised entity and the Service Authorised
entity (partnering entity). The charges could vary depending on terms of
agreement between the SCN Authorised entity and the Service Authorised
entity (partnering entity), likely including various service parameters contained
in Service Level Agreements (SLAs) and could also include the extent to which
the SCN Authorised entity contributes its own spectrum and/or utilises the
spectrum assigned to partnering entity for providing SCNaaS.
Further, following the principle of avoidance of double charging of same
revenue for AGR-based levies (such as Authorisation/ License Fees & Spectrum
Charges), the Gross Revenue (GR)/ ApGR (Applicable Gross Revenue) of the
Service Authorised entity could be allowed to be reduced by P (R-P) to arrive
at Adjusted gross revenue (AGR), and the same P could be added to the Gross
Revenue (GR) of the SCN Authorised entity.
3.18. The arrangements between SCN authorised entities and service authorised
entities for provisioning of SCNaaS to the Service Authorised entity, for
providing FSS/MSS service to the end users, have been discussed in detail in
Para 2.64-2.67 of Chapter II leading to Q6, as well as Para 2.110-2.112 of
Chapter II leading to Q11 and Para 2.110 to Para 2.129 leading to Q 16 &
Q17.
The arrangements between a SCN Authorised entity & Service Authorised
entity, which involves utilisation of either MSS spectrum or IMT Spectrum for
136provisioning of SCNaaS to the Service Authorised entity, for providing D2D
service to the end users, have been dealt at Para 2.132 to Para 2.139 of
Chapter II leading to Q18, Q19, Q20 & Q21. The D2D service is essentially a
MSS, as mentioned in Chapter II. However separate questions have been
posed regarding the same due to the novelty and prospects of the D2D service
in India.
3.19. Based on the above discussions, two broad issues arise from a financial
regulatory perspective: -
From the perspective of ensuring equal treatment and non-discrimination in
the agreement between the SCN authorized entities and the service authorized
entities for provision of SCNaaS, the need for regulation of such agreements
may be examined further.
First, it is necessary to assess whether there is a need to regulate agreements
and the charges exchanged between a Service Authorised entity and the SCN
Authorised entity. If such a need is established, the basis for prescribing the
quantum or ceiling limits of transacted charges as well as other parameters of
mutually agreed terms and conditions of the agreements between SCN
authorised entities and service authorised entities.
Second, the appropriate treatment of these charges in determining
GR/ApGR/AGR for the purpose of levy of Authorisation Fees and Spectrum
Charges for both entities.
3.20. In this context, the past recommendations, extant licensing regime as well as
Draft Rules under Telecommunications Act, 2023, could be referred to from
137the perspective of appropriate regulation and treatment of such charges.
Accordingly, the following are dealt with below:
A. An analogy of these charges transacted between a Service Authorised
entity and SCN Authorised entity can be drawn with the charges paid by
Virtual Network Operators (VNOs) under the UL (VNO) license to
Network service operators (NSOs). Though these charges are of nature
of infrastructure/network costs, they have been allowed as deductions
for the VNO operators, under virtually all the authorisations under the
UL (VNO) license. The item of deduction as per the License Agreement
is mentioned below:
Charges paid to NSOs towards Bulk/Wholesale bandwidth, leased line
and bandwidth charges, minutes and SMSs. However, these charges
should be governed by a written agreement, a copy of which must be
provided along with the proof of actual payment for the deduction to be
allowed
Thus, these network/ infrastructure cost paid by VNO to parent NSO are
allowed as deductions for the VNO, for the purpose of determination of
AGR for the VNO.
B. Further, in the Recommendations on Licensing Framework for
Establishing and Operating Satellite Earth Station Gateway (SESG) dated
29.11.2022, the following is mentioned regarding these charges:
“2.24 Specifically, in respect of License Fee, most of the stakeholders
have opined that a notional annual License Fee of Re. 1 (like IFMC
authorization) should be charged from SESG licensees. In support of
138their viewpoint, they have stated that the telecommunication services to
customers will be provided by the service licensees and not by the SESG
licensees, and the service licensees are already paying License Fee as a
percentage of AGR; therefore, License Fee should not be double
charged. On the other hand, a few stakeholders have suggested that
License Fee payable by SESG licensees should be 8% of AGR, at par with
the License Fee payable under Unified License; the charges paid by
service licensees to the SESG licensee may be treated as pass-through
charges for the purpose of computing License Fee payable by the service
licensees to avoid double taxation.
2.32 Further, the Authority observed that the SESG licensees will render
satellite-based resources to service licensees. Using the satellite-based
resources provided by the SESG licensees, service licensees will provide
communication services to the customers. The SESG licensees
themselves will not provide communication services directly to the end
users. The service licensees, to whom SESG licensees will provide
satellite-based resources, are already governed by Adjusted Gross
Revenue (AGR) based License Fee regime. Therefore, it would be
desirable to keep the License Fee payable by SESG licensees as minimum
possible.
2.33 Considering the comments of stakeholders and further analysis in
respect of the financial conditions of SESG License, the Authority
recommends that…
(b) License Fee: As the SESG licensees will not provide any service
directly to end customers, only a token License Fee of Re. 1 per annum
shall be levied on the SESG License”
Thus, in the above-mentioned Recommendations, the License Fee for
SESG authorised entities has been kept at a nominal Re 1. The treatment
139of charges paid by service licensees to SESG licensees for the purpose
of determination of GR/ApGR/AGR is not explicitly dealt with in the said
Recommendations.
C. In its Recommendations dated 17.02.2025, where the Authority dealt
with terms & conditions of Network Authorisations to be granted under
new Telecommunications Act, 2023, the following is mentioned:
“ 2.267 The Authority is cognizant that in case two networks offer
substitutable services, i.e., share a horizontal relationship between
them, a network operator has the incentive to foreclose or marginalize
its opponent network through various methods including high
interconnection fees. Such conduct may result in scant supply or high
prices of services, to the detriment of consumers. In such situations,
regulators often mandate the network operators to publish a regulator-
approved reference interconnection offer (RIO) on their websites, which
forms the basis of all interconnection agreements with other network
operators. On the other hand, in case two networks are vertically related,
interconnection between them is mutually profitable and therefore,
generally, does not require any regulatory intervention.
2.268 The Authority notes that the entities authorised under Section
3(1)(a) of the Telecommunications Act, 2023 would share a vertical
relationship with the authorised entities under Section 3(1)(b) of the
Telecommunications Act 2023 and avail telecommunication-network-as-
a-service from them. Accordingly, the Authority is of the view that there
is no need to mandate a reference agreement between authorised
entities establishing, operating, maintaining or expanding the
telecommunication network, and authorised entities providing
telecommunication services, at this stage.
140Para 2.269 Considering the comments of stakeholders and its own
analysis, the Authority recommends that the interconnection between
authorised entities establishing, operating, maintaining, or expanding
the telecommunication network under section 3(1)(b) of the
Telecommunications Act 2023, and the authorised entities providing
telecommunication services under section 3(1)(a) of the
Telecommunications Act 2023 should be left to mutually agreed terms
between them, at this stage. ”
Here, regarding regulation of the charges transacted between the
Network and Service Entities and related agreements/ arrangements,
forbearance for the time being was prescribed, and the need for
prescribing a model contract agreement was not felt presently at the
time.
D. DoT in its Gazette notification dated 09.10.2025 on the
“Telecommunications (Authorisation for Telecommunication Network)
Rules, 2025” provided the following, in Part D under Chapter 6,
regarding agreements between Satellite Earth Station Gateway (SESG)
authorised entities and partnering entities:
“(3) The authorised entity may provide its SESG infrastructure to entities
authorised under sub-section (1) of section 3 of the Act (hereinafter
“partnering entities” for the purpose of this rule), to enable the use of
satellite systems for the purposes of the authorisation of such partnering
entity, in accordance with the mutual agreement with such entities on a
fair and non-discriminatory basis.
(4) The authorised entity holding the SESG provider authorisation may
utilize the spectrum of the partnering entity for the limited purpose of
141configuration, while the right to use of spectrum shall remain with the
partnering entity.
(5) The authorised entity holding the SESG provider authorisation
establishing, operating, maintaining, or expanding the baseband
systems under sub-rule (3) of rule 47 shall extend control, visibility,
resource allocation and management of the telecommunication services,
being provisioned using satellite system to users, to the partnering entity
on mutually agreed terms and conditions.
(6) The authorised entity holding SESG provider authorisation may share
its passive infrastructure including building, electrical equipment,
including battery and power plant, dark fiber, duct space, Right of Way,
owned, established and operated by it under such authorisation, with
the entities having authorisation under sub-section (1) of section 3 of
the Act, in accordance with their mutual agreement, on a fair, and non-
discriminatory basis.”
Here, the agreements have been prescribed to be on mutual terms, with
emphasis on fair and non-discriminatory basis.
3.21. Regarding perusal of Licensing provisions for VNOs or past Recommendations
for Network Authorisations (including SESGs) as a reference for present
exercise, it should be noted that the proposed SCN Authorisation is a novel
concept, wherein it is envisaged as essentially a network authorisation with
the added eligibility for assignment of spectrum. The VNO Authorisation is a
service authorisation and SESGs are in the realm of network authorisations
without spectrum. The provisions regarding agreements between Network &
Service entities, in the Recommendation dated 17.02.2025 as well as the Draft
Rules dated 09.10.2025, as quoted above, could be held to be relevant here
from the point of view of regulation of such agreements.
1423.22. Considering the above references to extant licensing regime and past TRAI
recommendations, regarding regulation and treatment of agreements and
charges transacted between Service Authorised entities and SCN authorised
entities, including for utilisation of spectrum assigned to Service Authorised
entity, and also keeping in mind the novelty of the proposed SCN
Authorisation, the Authority solicits the views of stakeholders on the following
sets of questions:
Issues for Consultation:
Q22. Regarding the agreement between SCN Authorised entity and
a Service Authorised entity providing FSS/ MSS to the end
user, for provision of SCNaaS to the Service Authorised entity,
which may or may not include provisions for utilisation of FSS/
MSS spectrum assigned to the Service entity, is there a need
to regulate charges exchanged between the two entities under
such an agreement? If yes, what would be the possible
parameters, including SLA parameters, Spectrum utilisation
etc., which would form the basis of regulation? Please provide
your response with justification.
Q23. In case of an agreement between an SCN Authorised entity
and a Service Authorised entity providing D2D services using
MSS spectrum, for provision of SCNaaS to the Service
Authorised entity, which may or may not include provisions
for utilisation of MSS spectrum assigned to the Service entity
amongst other possible spectrum utilisation arrangements, is
there a need to regulate charges exchanged between the two
entities under such an agreement? If yes, what would be the
143possible parameters, including SLA parameters, Spectrum
utilisation etc., which would form the basis of regulation?
Please provide your response with justification.
Q24. In case of an agreement between an SCN Authorised entity
and a Service Authorised entity providing D2D services using
IMT spectrum, for provision of SCNaaS to the Service
Authorised entity, which may or may not include utilising
spectrum for feeder link assigned to the service entity, besides
utilising IMT spectrum assigned to the Service Authorised
entity, is there a need to regulate charges exchanged between
the two entities under such an agreement? If yes, what would
be the possible parameters, including SLA parameters,
Spectrum utilisation etc., which would form the basis of such
regulation? Please provide your response with detailed
justification.
Q25. Should the charges paid by the Service Authorised entity
(providing either FSS, MSS or D2D service to the end user) to
SCN Authorised entity for provisioning of Satellite
Communication Network as a Service (SCNaaS), be permitted
to be deducted from ApGR of the Service Authorised entity for
the purpose of arriving at AGR for levy of License/
Authorisation Fees and Spectrum charges? Please provide
your response with justification.
Q26. If the answer to the above question is no, please suggest the
methodology for considering such charges in determination of
AGR of both the service authorised and SCN authorised
144entities, for purposes of levying Authorisation/ License fees &
Spectrum Charges? Please provide your response with
justification.
C. Definitions of Gross Revenue (GR), Applicable Gross
Revenue (ApGR) and Adjusted Gross Revenue (AGR)
3.23. Regarding recommending the appropriate items of revenue and deductions for
the proposed SCN Authorisation, and consequent definitions for Gross
Revenue (GR), Applicable Gross Revenue (ApGR), and Adjusted Gross
Revenue (AGR), reference can be made to the extant licensing framework,
past recommendations of the Authority as well as the Draft Rules under the
Telecommunications Act, 2023. The following are accordingly dealt with
below:
A. The existing definitions of GR, ApGR, and AGR applicable to existing
satellite based authorisations - GMPCS and Commercial VSAT CUG - have been
placed at Annexure 3.1.
B. The Authority in its Recommendations dated 19.08.2021 on
“Recommendations on Enabling Unbundling of Different Layers Through
Differential Licensing,” examined the need for enabling unbundling of different
layers of the digital communications ecosystem, such as infrastructure,
network, services and application layers, through differential licensing. The
Authority observed that enabling such unbundling could facilitate greater
investments and innovation in the digital communications sector and would
require a review of the existing licensing, regulatory and resource allocation
frameworks. As part of these recommendations, the Authority had
145recommended creation of a separate authorisation under Unified License for
Access Network Provider (network layer) (ANP) to provide network services on
wholesale basis. Under this authorization for Network layer only, the Access
network provider was not permitted to directly provide services to the end
users.
The Authority observed regarding the proposed Access network provider (ANP)
Authorisation that, since the scope of a network provider is limited to the
provision of network infrastructure and does not include the provision of
services directly to end subscribers, the financial conditions applicable to such
entities should be rationalized and kept relatively lower than those applicable
to entities providing access services under the Unified License (UL). The
Authority further noted that the combined scope of Access Network Provider
and UL-VNO (Access Service) would be equivalent to the scope of a licensee
holding Access Service authorisation under UL. Accordingly, the Authority
recommended the following:
“the Authority recommends that since the combined scope of Access
Network Provider and UL-VNO (Access service) is equal to the scope of
a Licensee with Access Service authorization under UL, the Minimum
Equity, Minimum Net worth, Entry Fee and FBG/PBG requirements for
the proposed Access Network provider authorization may be arrived at
by deducting the amounts prescribed for UL (VNO-Access Service) from
the amount prescribed for UL-Access Service authorization.”
The said Recommendations with respect to the proposed Access Network
Provider (ANP) authorisation may be particularly relevant in understanding and
determining the financial conditions for SCN authorized entity, since the scope
of both Access Network provider and SCN Authorised entity is limited to
provision of network only and does not include provision of service directly to
146the subscribers. Further, both have been envisaged as essentially network
entities, with the added eligibility for assignment of spectrum for enabling
provision of Network as a Service (NaaS) to a Service Authorised entity. The
differences between them are apparent, as the proposed ANP authorisation
pertains to provision of terrestrial networks, while the current SCN
authorisation pertains to provision of satellite communication.
C. The Authority in its Recommendations dated 18.09.2024 on the
“Framework for Service Authorisations to be Granted under the
Telecommunications Act, 2023” recommended the financial conditions,
including the definition of GR, ApGR and AGR, which are reproduced below:
“The term Gross Revenue (GR) with reference to the revenue sharing
regime, in general, is the revenue earned from the operations under the
licenses issued to the service provider including revenue from other
sources. The License and service specific definition of GR is stipulated in
the respective service license agreements.
The Applicable Gross Revenue (ApGR) is arrived at after certain items
are deducted from the Gross Revenue, being revenue from non-telecom
activities and certain items mentioned license agreements. As such, the
ApGR is equal to GR of the licensee as reduced by revenue from
operations other than telecom activities/ operations, revenue from
activities under a license/ permission issued by Ministry of Information
and Broadcasting, receipts from the DBN (erstwhile USO Fund), and
items of other income, which include, income from dividend, income
from interest, capital gains on account of profit of sale of fixed assets
and securities, gains from foreign exchange rate fluctuations, income
from property rent, insurance claims, Bad debts recovered and excess
provisions written back.
147For the purpose of arriving at the AGR, certain deductions are allowed
from the ApGR. These deductions are specific for the different service
authorisations under the license agreement.
AGR is the base on which license fee (LF) and spectrum usage charges
(SUC) are computed by using the applicable rate.”
In view of the above, the Authority recommended the following:
(a) The extant definitions of Gross Revenue (GR), Applicable Gross
Revenue (ApGR) and Adjusted Gross Revenue (AGR) for the
existing Service Authorisations should continue.
(b) In case of merged/ clubbed / new Service Authorisations, the
definitions should be aligned accordingly.
(c) The applicable definitions for GR, AGR and ApGR have been given
under the respective Service Authorisations.
(d) The clarification dated 17.07.2023 issued by DOT regarding the
definitions of GR and AGR should be considered alongwith the
applicable definitions for GR, AGR and ApGR as have been given
under the respective Service Authorisations.
(e) Any further orders/instructions/clarifications on the definitions of
Gross Revenue, Applicable Gross Revenue and Adjusted Gross
Revenue may be issued by DOT after obtaining recommendations
from TRAI.
In the above Recommendations, the Authority had recommended that the
scope of the existing GMPCS Service Authorisation and Commercial VSAT CUG
Service Authorisation be merged into a single authorisation, namely the
Satellite-based Telecommunication Service Authorisation, under the
Telecommunications Act, 2023. It was further recommended that the extant
definitions of Gross Revenue (GR), Applicable Gross Revenue (ApGR), and
Adjusted Gross Revenue (AGR), as provided in the Unified License (UL)
148agreement, may be continued, with the recommendation that “in case of
merged/clubbed/new Service Authorisations, the definitions should be aligned
accordingly.”
In view of the proposed merger of the GMPCS Service Authorisation and the
Commercial VSAT CUG Service Authorisation into a single authorisation,
revised definitions of GR, ApGR, and AGR were also prescribed in the Chapter-
XI under Annexure 2.3 of said recommendations. The same are placed at
Annexure-3.1.
It should also be kept in mind that a direct analogy cannot be drawn between
SCN Authorisation and Satellite-based Telecommunication Service
Authorisations, which was proposed to be a merger of GMPCS or Commercial
VSAT Authorisation. SCN Authorisation is essentially a network authorisation
with the added eligibility for assignment of spectrum, while the above
recommendations pertained to a Service level authorisation which had direct
interface with end users.
D. Further, the financial conditions specified by the DoT in Chapter 4 of the
Gazette Notification dated 05.09.2025 on the “Draft Telecommunication
(Authorisation for Provision of Main Telecommunication Services) Rules, 2025”
may also be referred to for the purpose of prescribing the definitions of
GR/ApGR/AGR for SCN authorised entities. The definitions are reproduced
below:
“
“Gross Revenue” of an authorised entity shall include revenues accrued to an
authorised entity by way of all operations and activities and all income from
any source including on account of interest, dividend, rent, profit on sale of
fixed assets and miscellaneous income, without any set-off for related items
of expenses.
149“Applicable Gross Revenue” or “ApGR” for the purposes of calculating Adjusted
Gross Revenue (AGR), shall be equal to Gross Revenue of an authorised entity
as reduced by the items listed below:
(i) revenue from operations other than telecom activities or operations;
(ii) revenue from activities under an authorisation, permission or registration
issued by Ministry of Information and Broadcasting;
(iii) receipts from the Digital Bharat Nidhi; and
(iv) revenue falling under the following items:
(a) income from dividend;
(b) income from interest;
(c) capital gains on account of profit on sale of fixed assets and
securities;
(d) gains from foreign exchange rates fluctuations;
(e) income from property rent;
(f) insurance claims;
(g) bad debts recovered; and
(h) excess provisions written back: Provided that the Central
Government shall from time to time specify the description and
conditions applicable to these revenue sources and the manner of
their computation.
“Adjusted Gross Revenue” or “AGR”:
(i) In respect of a NSO, AGR shall be calculated by excluding the following
from the ApGR:
(a) interconnection usage charges (IUC), related to calls and SMS, paid
to other authorised entities or licensees; and
(b) roaming revenues paid to other authorised entities or licensees
within India and telecommunication service providers outside India; and
(ii) In respect of a VNO, AGR shall be calculated by excluding from the ApGR,
charges paid by the VNO to one or more NSOs under an agreement for
150provision of telecommunication network, including bandwidth, leased
circuits, call minutes and SMSs, as may be necessary for a VNO to provide
telecommunication services to its users, subject to submission to the
Central Government the copy of the agreement, specifying such charges,
along with proof(s) of actual payment of such amounts.
”
It should be kept in mind that the above Draft Rules pertain to Main Telecom
Services, which include Access, ISP, NLD services, but do not cover Network
authorisations. However, the definitions of GR/ApGR/AGR could provide
pertinent guidance point, if used with proper contextualisation.
3.24. Keeping in view the extant licensing framework, past recommendations by
TRAI and Draft rules notified by DoT, the Authority solicits the views of
stakeholders on the following sets of questions:
Issues for consultation:
Q27. What should be the appropriate definition of GR, AGR, and
ApGR for SCN Authorisation, including the relevant items of
revenue, exclusions and deductions? Additionally, are there
any operational or non-operational revenue elements specific
to SCN Authorised entities that should be considered within
the scope of definitions of GR, AGR and ApGR? Please provide
detailed response with specific line items of revenue,
exemptions and deductions, and specific definitions for
GR/ApGR/AGR.
151D. Spectrum Charges (SC)
3.25. In case it is decided that the entity holding the proposed Satellite
Communication Network (SCN) authorisation be made eligible to obtain
satellite spectrum (FSS or MSS or both) for either feeder link or user link or
both, under the provisions of Section 4 of the Telecommunications Act, 2023,
the Spectrum Charges payable by such SCN authorised entities needs to be
discussed.
Para 2.114 to 2.126 under Chapter II leading up to Q12-15 deals with the
issue of assigning FSS/MSS spectrum to SCN authorised entities. Further,
based on discussions at Para 2.123-2.124, it is understood that, in case the
SCNaaS, provided by SCN entity to Service entity, is used for provisioning of
D2D service (with IMT user link), the IMT Spectrum assigned to the Service
Authorised entity would be used for the same in the User link.
3.26. With reference to the discussion above, a SCN Authorised entity may obtain
spectrum directly from the Central Government and/or enter into an
agreement with a Service Authorised entity (partnering entity) providing
telecommunication services for using spectrum assigned to such entity for
providing SCNaaS to the service authorising entity. Except Option 4 and similar
sub option in case of Option 5, as discussed in Section B above, the SCN
authorised entities would obtain satellite spectrum directly from the
Government for either feeder link or user link or both, for providing Satellite
Communication Network-as-a-Service (SCNaaS) to service authorised entities
under Section 3(1)(a) of the Telecommunications Act, 2023.
3.27. Regarding the appropriate spectrum charges for the proposed SCN
Authorisation under such scenarios, reference can be made to the extant
152licensing/ spectrum charging framework, past recommendations of the
Authority as well as the Draft Rules under the Telecommunications Act, 2023.
The following are accordingly dealt with below:
A. Currently, satellite spectrum is being assigned through an administrative
mechanism with formula-based charging for some services while charges are
based on percentage of AGR for other services. These are summarised below:
(i) For Commercial VSAT CUG service authorisation, the spectrum charges
are being levied quarterly as a percentage of Adjusted Gross Revenue
(AGR), ranging from 3-4% of AGR, based on range of data rate, as per
DoT’s order no. R-11014/9/2001-LR dated 16th April 2003.
In this regard through the Recommendations on “Spectrum Usage
Charges and Presumptive Adjusted Gross Revenue for Internet Service
Providers and Commercial Very Small Aperture Terminal Service
Providers” dated 07.03.2017, it was recommended that the Spectrum
Usage Charges for Commercial VSAT CUG license should not be more
than 1% of AGR irrespective of the data rate. The same has not been
accepted by DoT.
(ii) Further, the Spectrum Charges for MSS/FSS, under other satellite-based
service authorisations, are being levied as per DoT’s order issued vide
letter no. P-11014/34/2009-PP dated 11th December 2023 (erstwhile
DoT’s order dated 22nd March 2012). As per the above DoT’s order,
spectrum charges for satellite services are levied in two parts i.e. Part-
I: Royalty Charges and Part II: License Fee for wireless stations.
153The Annual Royalty charges for satellite-based services, as specified in
Part-I of DOT’s order dated 11th December 2023, are being calculated
as given below:
Royalty, R (in Rs.) = 35000 x Bs;
where (Bs) is the Bandwidth Factor for Satellite Communications. For
the table on bandwidth factors corresponding to different slabs of
assigned bandwidth, reference may be made to Section C of the
recommendations dated 09.05.2025.
The License Fee for wireless stations operating under Satellite Services
(FSS, BSS, MSS), including standby sets is specified in Part-II of the
afore-mentioned DoT’s order and may also be referenced from Section
C of Chapter III in the recommendations dated 09.05.2025.
The Schedule-VII of the said order is applicable for Assignment of
spectrum to satellite-based services including Fixed Satellite Services
(FSS), Broadcasting Satellite Services (BSS), Mobile satellite Services
(MSS) and Earth Exploration Satellite Services (EESS). Thus, the
standard annual royalty factor is fixed as Rs. 35,000/- per frequency.
The same rates are applicable for all applications under FSS, BSS, MSS
and EESS, in combination with the relevant Bandwidth Factor (Bs).
Further, currently, Commercial VSAT CUG service or the GMPCS service
are not subject to any minimum spectrum charges.
While perusing the extant spectrum charging framework for GMPCS/
VSAT or the Recommendations dated 07.03.2017 in the context of
present consultations, it should be kept in mind that SCN authorised
154entities are proposed as essentially network authorised entities which do
not directly serve subscribers. Thus, they would be differing in scope of
service from GMPCS/ VSAT authorised entities which interface directly
with end users.
B. The Recommendations dated 19.08.2021 on “Recommendations on
Enabling Unbundling of Different Layers Through Differential Licensing” can
also be referred while examining the appropriate spectrum charging
framework for SCN authorised entities. In its Recommendations dated
19.08.2021, the Authority observed that maintaining a level-playing field
among similar entities in the market is essential for orderly growth of the
sector. It was noted that prescribing differential or reduced levies for network-
layer operators could create possibilities of regulatory arbitrage between the
proposed unbundled licensing regime and the existing integrated licensing
framework under the Unified License. Accordingly, to maintain a level-playing
field and mitigate any potential arbitrage opportunities, the Authority
recommended that license fee and spectrum usage charges should remain the
same for both the existing integrated licensing regime and the proposed
unbundled licensing regime. Therefore, the Authority had recommended the
following:
“The Authority concurs with the views of the stakeholders that there is a need
of rationalization of regulatory levies; however, for ordered growth of the
sector, level playing needs to be maintained between similar players in the
market. Therefore, any change in levies for Network only layer should also be
made for UL licensees. Prescription of differential (reduced) levies for Network
Operator could create a possibility of arbitrage. Thus, to maintain level-playing
field and to mitigate any possibility of arbitrage opportunity, it is important
that the Government taxes and levies are kept same for the existing
155(integrated) licensing regime and proposed unbundled license regime.
Therefore, the Authority recommends that the License Fee and Spectrum
Usage charges applicable for the Access Network Provider Authorization should
be the same as that applicable to the Access Service Authorization under
Unified License.”
As noted above, the said Recommendations with respect to the proposed
Access Network Provider (ANP) authorisation may be relevant in
understanding and determining the financial conditions for SCN authorized
entity, due to similarities in the scope of both the proposed authorisations.
Perusing the above recommendations dated 19.08.2021, it is observed that
Spectrum charges for Network entity (proposed Access Network provider) and
Service entity (Access Service Provider) had been proposed to be kept at the
same level, to maintain level-playing field and mitigate any possibility of
arbitrage opportunity. Following the same logic, it could be argued that the
Spectrum Charges for SCN Authorised entities, which primarily belong to the
Network layer, could be kept the same as Satellite based commercial
communications services, providing service directly to end users, which have
been dealt with holistically in the Recommendations dated 09.05.2025. The
Recommendations dated 09.05.2025 are discussed below in detail.
C. In its Recommendations dated 18.09.2024 on the “Framework for
Service Authorisations to be Granted Under the Telecommunications Act,
2023”, which recommended merging of GMPCS & Commercial VSAT CUG
Service authorization into a single Satellite based telecommunications service
authorisation. The following was recommended regarding use of spectrum by
this merged authorised entity:
156The Authorisation does not confer any right to assignment and use of
spectrum, for which separate specific frequency assignment shall be required
from the Central Government under Section 4 of the Telecommunications Act,
2023. In case the Authorised Entity obtains spectrum from the Central
Government, the terms of conditions of the assignment of spectrum shall also
be applicable to the Authorised Entity along with the Service Authorisation.
D. The Authority in its Recommendations dated 09.05.2025 on the “Terms
and Conditions for the Assignment of Spectrum for certain Satellite-Based
Commercial Communication Services”, had provided recommendations on
spectrum charges on GSO based FSS, NGSO based FSS and GSO/ NGSO based
MSS, which shall be applicable to Satellite-based telecommunication Service
providers under Section 3(1)(a) of Telecommunication Act, 2023.
Following a detailed discussion with reasoned arguments, and considering all
extant charging regimes and past Recommendations, the Authority had
recommended moving away from current segregated modes of charging viz.
AGR based for Commercial VSAT CUG Service and formula based for other
MSS/ FSS such as GMPCS, towards AGR based charging mechanism for all
Satellite based commercial communication services, which is tabulated below
for easy reference:
157Annual spectrum charge
Satellite Communication Service (as per Recommendations
dated 09.05.2025)
GSO-based Fixed Satellite Services
Max (4% of AGR, Annual
GSO/NGSO-based Mobile Satellite
minimum spectrum charge)
Services
Max {(4% of AGR + 500 X Nu),
Annual minimum spectrum
NGSO-based Fixed Satellite Services charge}
where Nu refers to Number of
subscribers in urban areas
Annual minimum spectrum charge = Rs. 3,500 per MHz
From the above table, it is observed that the level of spectrum charges
recommended is uniform at 4% of AGR for all satellite communication services,
except in the case of NGSO-based Fixed Satellite Services, where an additional
per-subscriber charge of INR 500 per annum is recommended to be levied for
urban areas. The detailed rationale for spectrum charges for various services
can be referred at Section C of Chapter III in the Recommendations dated
09.05.2025.
Further, the Authority had also recommended that the Annual Minimum
Spectrum Charges for GSO/NGSO-based Fixed Satellite Services and
GSO/NGSO-based Mobile Satellite Services should be Rs. 3,500 per MHz. The
detailed rationale for the can be referenced at Section C of Chapter III in the
Recommendations dated 09.05.2025.
158The above Recommendations had been considered by the DoT and a back
reference dated 12.11.2025, seeking reconsideration of specific
recommendations/ sub-sections of recommendations, was received by the
Authority. With regard to Spectrum Charges, DoT accepted the
recommendations regarding GSO/ NGSO based MSS, except for modification
regarding GSPS (sui generis) license of BSNL. DoT also stated regarding the
Recommendation no. 4.16 placed at Para 3.152 (summarising the entire
recommendations for Spectrum charging of GSO/ NGSO based FSS/ MSS) that
the same has not been accepted, in light of the observations of DoT regarding
NGSO based FSS & GSPS license of BSNL respectively. Thus, for NGSO based
FSS, wherein the Authority had recommended rate of 4% of AGR with an
additional spectrum charge of INR 500 per urban subscriber, DoT suggested
a Spectrum Charge of 5% (instead of 4%), with a discount of 1% if a certain
percentage (say 5%) of overall customers enrolled in the year are from
borders/ hills/ island areas of the country. The Authority, after examination of
the reference, had reiterated its recommendations regarding spectrum
charges for all categories of satellite based services.
While perusing the above Recommendations in the context of the present
consultations, it should be kept in mind that SCN authorised entities are
proposed as essentially network authorised entities which do not directly serve
subscribers. Thus, they would be differing in scope of service from satellite
based commercial communications services which interface directly with end
users. Hence, the per-subscriber charge appears to be inapplicable for the SCN
authorised entities. With these considerations, the Spectrum Charges
recommended for Satellite based commercial communications service can be
examined for applicability to proposed SCN Authorised entity.
159Overall, it can be seen that, the Spectrum charges of 4% of AGR recommended
by the Authority vide its Recommendations dated 09.05.2025 which have been
arrived at after considering the extant satellite based services and various
possibilities in detail and can serve as a reasonable basis for determining the
spectrum charges for proposed SCN Authorised entities.
3.28. Further, the issue of enabling D2D services in MSS bands such as L & S bands
also requires further discussion from the spectrum charging framework
standpoint. These bands are presently administratively assigned for satellite-
based service authorisations, while direct mobile services to consumers
traditionally require the use of IMT spectrum acquired through auctions. The
current and proposed charging mechanisms for Satellite based
telecommunications services are examined at Para 3.27(A) & Para 3.27(D)
above respectively, for further guidance in the matter.
In case these MSS bands are allowed for provisioning of D2D services by
relevant service authorised entities, depending upon permitted modes of
operations, the MSS spectrum may be held in such cases by either the SCN
Authorised entity or the Service Authorised entity. Further, there appears to
be no distinction between spectrum charging for MSS bands in the two use
cases viz. traditional MSS via specialised satellite phones and D2D on regular
cell phones using MSS bands. They could be charged as per the
Recommendations dated 09.05.2025 which have been arrived at holistically
for all satellite-based services. The same would require further discussion and
is placed below as a question for stakeholders’ comments regarding the issue
of spectrum charging.
3.29. Another issue which needs discussion from spectrum charging standpoint is
the use of IMT spectrum for the provision of non-terrestrial services, i.e.,
160Direct-to-Device (D2D) satellite-based telecommunication services by the
service authorized entities, as envisaged under Option 4 above. This
necessitates consideration of whether any additional spectrum charges should
be payable by the Service Authorised entity to the Government.
One argument could be that if the IMT spectrum is used for provision of non-
terrestrial (satellite) services, it would earn an additional revenue which would
not have been viable with only terrestrial expansion of network. Hence, an
additional spectrum charge can be held to be payable on the IMT spectrum
blocks used for provision of D2D services. The spectrum charging for the same
could follow the proposed spectrum charges for satellite services as per
Recommendations dated 09.05.2025.
Conversely, it could be argued that there need not be any additional Spectrum
charges for Service authorized entities if the IMT spectrum is used for
providing D2D satellite-based services, based on following grounds:
(i) The Service Authorised entity holds exclusive rights over the service area
for the IMT spectrum acquired through a due process, and the end use
covers mobile telecommunications. The SCN Authorised entity provides
only infrastructure in the form of BTS in the sky.
(ii) IMT spectrum earmarked by the partnering entity for the provision of
satellite-based telecommunication services within a given geographical
area/Licensed Service Area (LSA) cannot be simultaneously utilised for
terrestrial services in the same area. In this context, the use of IMT
spectrum for non-terrestrial networks may be viewed as complementary
to terrestrial networks.
(iii) Further, Satellite-based communication services are expected to
primarily provide connectivity in remote, rural, and otherwise uncovered
or underserved areas where terrestrial networks are either not available
161or are economically unviable to deploy. Accordingly, the IMT spectrum
utilised for satellite-based communications essentially provided
supplementary coverage and furthers the goal of universal digital
connectivity by extending communication services to areas beyond the
reach of conventional terrestrial networks.
(iv) Also, the revenue potential from satellite-based services using IMT
spectrum is likely to be relatively limited in the near term, as such
services would largely be operational in sparsely populated or remote
areas and could be difficult to be optimally monetized.
In this regard, it could be argued that satellite-based services are
complementary extension of terrestrial networks, aimed at enhancing overall
network reach and service availability. Hence, a case could be made that
permitting the use of IMT spectrum for provisioning of satellite-based
communication services, particularly for expanding connectivity in remote and
rural areas, should not attract any additional spectrum charges payable to the
Government.
The issue of spectrum charging in case of usage of IMT spectrum for Satellite
based services has been placed as a question for soliciting stakeholders’
comments.
3.30. The international practices regarding terms and conditions for allowing use of
IMT spectrum for D2D services have been discussed at Para 2.104 of Chapter
II.
Keeping in view the extant licensing and spectrum charging framework, past
recommendations by TRAI, Draft rules notified by DoT and the international
best practices, the Authority solicits the views of stakeholders on the following
sets of questions:
162Issues for consultation:
Q28. In case FSS/MSS or any other spectrum is assigned to the
Satellite Communication Network (SCN) authorised entities
for provisioning of SCNaaS to Service authorised entities, what
should be the broad financial terms & conditions of such an
assignment?
Q29. Should the spectrum charges for Satellite Communication
Network (SCN) authorised entities be based on the spectrum
charging framework as per the Recommendations dated
09.05.2025 applicable for Satellite based commercial
communications services? Accordingly, what should be the
appropriate spectrum charging framework and spectrum
charges applicable for a SCN Authorised entity? Please provide
your response with detailed justification.
Q30. If spectrum charges are to be levied on the basis of AGR of the
SCN Authorised entity, are there any specific operational/ non-
operational revenue items that should be excluded from AGR
for the purpose of determination of spectrum charges? Please
provide your response with detailed justification.
Q31. If the spectrum charges are not to be levied on basis of AGR of
the SCN Authorised entity, what should be the appropriate
spectrum charging mechanism and the corresponding level of
spectrum charges applicable to Satellite Communication
Network (SCN) authorised entities? Please provide your
response with detailed justification.
163Q32. In case D2D services are permitted to be provided using the
MSS frequency bands such as L & S bands, what should be the
appropriate spectrum charging framework for such bands
when utilised for provision of D2D satellite based services?
Please provide detailed justification for your response,
including the methodology for determination of such spectrum
charges, if required.
Q33. In case D2D services are permitted to be provided using the
IMT spectrum assigned to the Service Authorised entity
(‘partnering entity’) providing D2D satellite-based
telecommunication services, should any additional spectrum
charges be levied on the Service Authorised entity (‘partnering
entity’) for use of IMT spectrum in the provision of satellite
based D2D services? If yes, what should be the basis and
quantum of such additional spectrum charges payable by the
Service Authorised entity to the Government? In either case,
please provide detailed justification for your response,
including the detailed methodology for determination of such
spectrum charges.
E. Payment terms
3.31. Regarding recommending the appropriate payment terms, the extant licensing
regime, past TRAI recommendations as well as Draft Rules under
Telecommunications Act, 2023 can be referred. Accordingly, the following are
dealt with below:
164A. The payment terms for Spectrum Charges under the extant framework
for Access Service entities as well as Commercial VSAT CUG/ GMPCS authorised
entities is guided by various WPC/ WPF charging orders and essentially is in line
with the Draft Rules contained in Gazette notification dated 05.09.2025.
B. The Authority, through its Recommendations dated 09.05.2025 on the
“Terms and Conditions for the Assignment of Spectrum for Certain Satellite-
Based Commercial Communication Services” recommended the following
payment terms for spectrum charges:
“
ii. The annual spectrum charges for GSO/ NGSO-based Fixed Satellite
Services, GSO/ NGSO-based Mobile Satellite Services, as specified in
paras 3.106, 3.121 and 3.143 above, should be paid on advance quarterly
basis and payable within 15 days of the commencement of the respective
quarter.
iii. The minimum charges should be paid in advance at the time of the
assignment of spectrum and at the beginning of every year. The
quarterly/annual adjustment of payment due shall be made with the
minimum spectrum charge for the particular year only.
iv. The per subscriber charges should be paid by NGSO-based FSS service
providers on a quarterly basis equal to 125 X Nu, where Nu refers to total
number of subscribers in urban areas at the end of the previous quarter”.
The above Recommendations had been considered by the DoT and a back
reference dated 12.11.2025, seeking reconsideration of specific
recommendations/ sub-sections of recommendations, was received by the
Authority. With regard to Payment terms, DoT accepted the recommendations
with the condition that TRAI may refer to Financial Conditions, in particular
165Rule 27, of Draft telecommunications Rules 2025 circulated on 09.09.2025,
and ensure that the payment terms for Spectrum charges are in sync with the
authorisation rules being framed. The Authority, after examination of the
reference, had recommended the following in its Response dated 08.12.2025
to the Back Reference:
2.37.5 Regarding the AGR-based charges (as mentioned at (a) above),
the Authority takes note of the schedule of payment prescribed by DoT
in the Draft Rules and agrees with DoT that instead of advance payment,
the schedule of payment as given in the Draft Telecommunications
(Authorisation for Provision of Main Telecommunication Services) Rules,
2025 framed by DOT, can be followed to be in sync with the
authorisation Rules.
2.37.6 The Authority further notes that the Draft Rules on Schedule of
payment notified under Section 3 of the Telecommunications Act, 2023
prescribe only for the schedule of payment related to the minimum
spectrum charges or the spectrum charges that are linked to AGR. These
Rules do not cover the minimum spectrum charges based on per MHz or
the fixed charge recommended by the Authority.
2.37.7 The Authority, therefore, is of the view that the payment
condition related to minimum spectrum charges based on per MHz and
fixed per subscriber charge be suitably inserted while finalizing the Draft
Rules on Schedule of payment notified under Section 3 of the
Telecommunications Act, 2023 and / or the yet to be framed Rules for
Section 4 of the Telecommunication Act, 2023, as applicable.
In essence, the advance payment provision for quarterly Spectrum charges
was revised and the schedule of payment as given in the Draft
Telecommunications (Authorisation for Provision of Main Telecommunication
166Services) Rules, 2025 framed by DOT, was recommended to be followed with
certain conditions.
C. DoT in its Gazette notification dated 05.09.2025 on the “Draft
Telecommunication (Authorisation for Provision of Main Telecommunication
Services) Rules, 2025” provided the following payment terms:
i. The authorisation fee or spectrum charges linked to AGR determined
under these rules shall be payable in four quarterly instalments during
each financial year commencing first of April, and free for any duration
of authorisation that is less than a quarter shall be calculated on a
pro-rata basis based on actual number of days in the relevant quarter.
ii. An authorised entity shall make payment of the quarterly instalments
of the authorisation fee and spectrum charges linked to AGR in the
following manner:
(a) The quarterly instalment is respect of each of the first three
quarters of a financial year shall be paid within fifteen days of
completion of the relevant quarter and
(b) The quarterly instalment for the last quarter shall be paid in
advance by the twenty-fifth of March, calculated on the basis of
expected revenue for that quarter, subject to a minimum amount
equal to the authorisation fee and spectrum charges linked to AGR
paid for the previous quarter:
Provided that an authorised entity shall adjust and pay the
difference between the advance payment made for the last
quarter and the actual amount duly payable for such quarter by
the fifteenth of April of next financial year.
1673.32. Keeping in view the extant licensing framework, past recommendations by
TRAI and Draft rules notified by DoT, the Authority solicits the views of
stakeholders on the following sets of questions:
Issues for Consultation:
Q34. In case spectrum is assigned to Satellite Communication
Network (SCN) authorised entities, what should be the
appropriate payment terms for spectrum charges payable by
Satellite Communication Network (SCN) authorised entities?
Please provide your response with justification.
Q35. In case Minimum Spectrum Charges are to be applicable for
SCN authorised entities, what should be the payment terms for
the minimum spectrum charges for SCN authorised entities?
Please provide your response with detailed justification.
F. Other Financial Conditions
3.33. In the evolving landscape of satellite communications, it is crucial to establish
robust financial conditions beyond the definitions of GR/ApGR/AGR & Spectrum
Charges to ensure the sustainable growth and development of the sector.
Financial conditions such as Minimum equity/networth requirements, Entry
fees, Bank guarantees, Application processing fees, and Authorisation fees play
both a material and a signalling role in shaping the competitive environment.
These financial conditions help ensure that only serious players enter the
market, while also encouraging entrepreneurship in this emerging field, which
168is still at a nascent stage of development. These conditions serve not only as
safeguards against non-serious entities but also as enabling mechanisms to
foster innovation and investment, thereby driving the overall progress of the
industry. Hence, it is essential to examine these other financial conditions for
SCN Authorised entities with a balanced perspective.
3.34. For these other financial conditions covering Minimum equity and networth
requirements, Entry fees, Bank guarantees, Application processing fees and
Authorisation fees, reference can be made to the existing licensing regime,
past recommendations, and the Draft Rules under the Telecommunications
Act, 2023. However, it is to be noted that SCN Authorisation is a novel concept,
which is essentially a network authorisation with the added eligibility for
assignment of spectrum, while the proposed Satellite based telecom Service
Authorisations as per Recommendations dated 18.09.2024 are service based
authorisations and SESGs as per Recommendations dated 29.11.2022/
17.02.2025 are in the realm of network authorisations with spectrum. The
extant licensing framework, including for Commercial VSAT and GMPCS
Authorisations, does not differentiate between Network and Service provision,
and generally permits for both. Thus, these references to extant licensing
framework or past TRAI Recommendations only provide broad contours of the
probable framework for SCN Authorisation. The aspects relating to these other
financial conditions, along with insights from the existing licensing regime, past
recommendations, and the Draft Rules under the Telecommunications Act,
2023, are discussed in subsequent sections.
F 1. Minimum equity and minimum Net worth
3.35. Regarding the Minimum equity and minimum net worth requirements for
proposed SCN Authorised entity, reference can be made to the existing
169licensing regime, past recommendations and the Draft Rules under the
Telecommunications Act. Accordingly, the following are dealt with below:
A. In the Unified License (UL) Agreement, it is stated that the minimum
equity and minimum networth requirements are NIL for the VSAT (National
Area) service authorisation, whereas a minimum equity and minimum
networth of Rupees Two Crore Fifty Lakh each are required for the GMPCS
(National Area) service authorisation of the licensee.
B. The financial conditions applicable to the Access Network Provider
proposed by the Authority in its recommendations dated 19.08.2021 is
reproduced below on determination of minimum equity and minimum
networth requirements.
“The Authority recommends that since the combined scope of Access
Network Provider and UL-VNO (Access service) is equal to the scope of
a Licensee with Access Service authorization under UL, the Minimum
Equity, Minimum Net worth, Entry Fee, and FBG/PBG requirements for
the proposed Access Network provider authorization may be arrived at
by deducting the amounts prescribed for UL (VNO–Access Service) from
the amount prescribed for UL-Access Service authorization.”
C. In its Recommendations dated 29.11.2022 on “Recommendations on
Licensing Framework for Establishing and Operating Satellite Earth Station
Gateway (SESG)” the Authority recommended that there should be no
requirement of minimum equity and minimum networth in respect of SESG
License.
D. In its Recommendations dated 18.09.2024 on the “Framework for
Service Authorisations to be Granted Under the Telecommunications Act,
1702023”, the Authority recommended Rupees One Crore each minimum equity
and minimum networth for Satellite-based telecommunication service
authorisation.
E. In its Recommendations dated 17.02.2025 on the “Recommendations
on the Terms and Conditions of Network Authorisations to be Granted Under
the Telecommunications Act, 2023”, the Authority recommended that there
shall be no requirement for minimum equity and minimum networth for SESG
Provider Authorisation.
F. In the Gazette notification dated 05.09.2025 on the “Draft
Telecommunication (Authorisation for Provision of Main Telecommunication
Services) Rules, 2025” issued by the DoT, prescribed the minimum equity and
minimum networth requirements under Schedule C and mentioned the
following regarding minimum equity and minimum networth in Chapter 2:
“(1) An applicant seeking authorisation under these rules shall be a
company incorporated under the Companies Act having minimum paid
up equity capital and minimum networth, as specified in Schedule C to
these rules:
Provided that where an applicant possesses one or more authorisations
or applies for one or more new authorisations:
(a) the requirement of minimum paid up equity capital shall be equal to
the sum total of the minimum paid up equity capital requirement for
each such authorisation as specified under Schedule C.
171(b) the requirement of minimum networth shall be equal to the sum total
of the minimum networth requirement for each such authorisation as
specified under Schedule C.
Provided further that where an applicant possesses one or more
authorisations or applies for one or more new authorisations under sub-
section (1) of section 3 of the Act, for any type of telecommunication
service or telecommunication network, the requirement of minimum
networth and minimum paid up equity capital shall be equal to the sum
total of the minimum networth and minimum paid up equity capital
requirement for each such authorisation, respectively.”
The Minimum equity and minimum networth specified under Schedule C for
various Service authorisations is given below:
SCHEDULE C: MINIMUM EQUITY, MINIMUM NETWORTH FOR
AUTHORISATIONS FOR TELECOMMUNICATION SERVICES
Category of Minimum Minimum
Service
S. No. service Equity Networth
Authorisation
authorisations (in Rs.) (in Rs.)
Unified Service
1. 25 crores 25 crores
Authorisation
Access Service
2. 2.5 crores 2.5 crores
Authorisation
Main Services
Authorisations
Internet Service
(NSO)
3. Authorisation 10 lakh Nil
(National Area)
Internet Service
4. 1 lakh Nil
Authorisation
172Category of Minimum Minimum
Service
S. No. service Equity Networth
Authorisation
authorisations (in Rs.) (in Rs.)
(Telecom circle/
Metro Area)
Long Distance
5. Service 2.5 crores 2.5 crores
Authorisation
Unified Service
6. 10 crores 10 crores
Authorisation
Access Service
7. 1 crore 1 crore
Authorisation
Wireline Access
8. Service 1 lakh Nil
Authorisation
Main Service
Internet Service
Authorisations
9. Authorisation 10 lakh Nil
(VNO)
(National Area)
Internet Service
Authorisation
10. 1 lakh Nil
(Telecom circle/
Metro Area)
Long Distance
11. Service 1 crore 1 crore
Authorisation
1733.36. Keeping in view the extant licensing framework, past recommendations by TRAI
and Draft rules notified by DoT, the Authority solicits the views of stakeholders
on the following sets of questions:
Issue for consultation:
Q36. What should be the minimum equity and minimum networth
requirements for a Satellite Communication Network (SCN)
authorised entity? Please provide detailed justification in
support of your response.
F 2. Entry Fee
3.37. Regarding recommending the appropriate entry fee, the extant licensing
regime, past recommendations as well as Draft Rules under
Telecommunications Act, 2023 can be referred. Accordingly, the provisions for
Entry Fee in the relevant recommendations, extant licensing provisions as well
as Draft Rules are discussed below:
A. In the Unified License (UL) Agreement, it is stated that a one‑time,
non‑refundable entry fee of Rupees Thirty Lakh for VSAT (National Area)
service authorisation and Rupees One Crore for GMPCS (National Area) service
authorisation is to be paid by the licensee.
B. As discussed above in section D of this chapter, the Authority in its
Recommendations dated 19.08.2021 had examined the financial conditions
applicable to the Access Network Provider. The Authority observed that since
the scope of a network provider is limited to the provision of network
infrastructure and does not include the provision of services directly to end
174subscribers, the financial conditions applicable to such entities should be
rationalized and kept relatively lower than those applicable to entities providing
access services under the Unified License (UL). The Authority further noted
that the combined scope of Access Network Provider and UL-VNO (Access
Service) would be equivalent to the scope of a licensee holding Access Service
authorisation under UL. Accordingly, the Authority recommended the
following:
“the Authority recommends that since the combined scope of Access
Network Provider and UL-VNO (Access service) is equal to the scope of
a Licensee with Access Service authorization under UL, the Minimum
Equity, Minimum Net worth, Entry Fee and FBG/PBG requirements for
the proposed Access Network provider authorization may be arrived at
by deducting the amounts prescribed for UL (VNO-Access Service) from
the amount prescribed for UL-Access Service authorization.”
C. In its Recommendations dated 29.11.2022 on the “Recommendations
on Licensing Framework for Establishing and Operating Satellite Earth Station
Gateway (SESG)”, the Authority recommended a non-refundable one-time
Entry Fee of Rs. Ten lakhs to be levied for the grant of SESG License.
D. In its Recommendations dated 18.09.2024 on the “Framework for
Service Authorisations to be Granted Under the Telecommunications Act,
2023”, the Authority suggested the entry fee of Rupees Fifty lakh for Satellite-
based telecommunication service authorisation.
E. In its Recommendations dated 17.02.2025 on the “Recommendations
on the Terms and Conditions of Network Authorisations to be Granted Under
the Telecommunications Act, 2023”, the Authority recommended an entry fee
of Rupees Ten Lakh for SESG Provider Authorisation.
175F. DoT in Chapter II of its Gazette notification dated 05.09.2025 on the
“Draft Telecommunication (Authorisation for Provision of Main
Telecommunication Services) Rules, 2025” has prescribed the entry fee
requirements for various Service authorisations under Schedule A, as given
below:
SCHEDULE A: ENTRY FEE FOR AUTHORISATIONS FOR
TELECOMMUNICATION SERVICES
Category of Service Service Entry Fee
S .No.
Authorisations Authorisation (in Rs.)
Unified Service
1. 12 crores
Authorisation
Access Service 50 lakh
2.
Authorisation
(25 lakh for NE & J&K)
Internet Service
Main Authorisation
3. 10 lakh
Telecommunications (National
Service Authorisations
Area)
(NSO)
Internet Service
50,000
Authorisation
4.
(Telecom circle/ (25,000 for NE & J&K)
Metro Area)
Long Distance
5. 1 crore
Service
176Category of Service Service Entry Fee
S .No.
Authorisations Authorisation (in Rs.)
Authorisation
Unified Service
6.
Authorisation 3 crores
12.5 lakh
Access Service
7. (6.25 lakh for NE &
Authorisation
J&K)
Wireline Access
50,000
8. Service
(25,000 for NE & J&K)
Authorisation
Main
Telecommunication Internet Service
Service Authorisations Authorisation
9. 10 lakh
(VNO) (National
Area)
Internet Service
Authorisation 50,000
10.
(Telecom circle/ (25,000 for NE & J&K)
Metro Area)
Long Distance
11. Service 25 lakh
Authorisation
1773.38. Keeping in view the extant licensing framework, past recommendations by
TRAI and Draft rules notified by DoT, the Authority solicits the views of
stakeholders on the following sets of questions:
Issue for consultation:
Q37. What should be the entry fee for proposed Satellite
Communication Network (SCN) authorisation? Please provide
detailed justification in support of your response.
F 3. Authorisation fee
3.39. Regarding the appropriate rate of authorisation fee, reference can be made to
the extant licensing regime, past recommendations and the Draft Rules under
the Telecommunications Act. Accordingly, the following are dealt with below:
A. The License Fee terms contained in extant Unified License, applicable to
all authorisations under the Unified License framework are as follows:
18.2 License Fee:
18.2.1 In addition to the Entry Fee, an annual License fee as a percentage of
Adjusted Gross Revenue (AGR) shall be paid by the Licensee service-area wise,
for each authorized service from the effective date of the respective
authorization. The License fee shall be 8% of the AGR, inclusive of USO Levy
which is presently 5% of AGR.
Provided that from Second Year of the effective date of respective
authorization, the License fee shall be subject to a minimum of 10% of the
Entry Fee of the respective authorized service and service area as in Annexure-
II.
178B. The Authority in its Recommendations dated 19.08.2021 on
“Recommendations on Enabling Unbundling of Different Layers Through
Differential Licensing” suggested that the License/ Authorisation fee of Access
Network provider should be the same as Access service provider, essentially
prescribing the same level of fees between Network & Service entities to
prevent arbitrage. The following excerpt may be seen:
The Authority concurs with the views of the stakeholders that there is a need
of rationalization of regulatory levies; however, for ordered growth of the
sector, level playing needs to be maintained between similar players in the
market. Therefore, any change in levies for Network only layer should also be
made for UL licensees. Prescription of differential (reduced) levies for Network
Operator could create a possibility of arbitrage. Thus, to maintain level-playing
field and to mitigate any possibility of arbitrage opportunity, it is important
that the Government taxes and levies are kept same for the existing
(integrated) licensing regime and proposed unbundled license regime.
Therefore, the Authority recommends that the License Fee and Spectrum
Usage charges applicable for the Access Network Provider Authorization should
be the same as that applicable to the Access Service Authorization under
Unified License.
C. The Authority in its Recommendations dated 29.11.2022 on “Licensing
Framework for Establishing and Operating Satellite Earth Station Gateway
(SESG) noted the following:
“the SESG licensees will render satellite-based resources to service licensees.
Using the satellite-based resources provided by the SESG licensees, service
179licensees will provide communication services to the customers. The SESG
licensees themselves will not provide communication services directly to the
end users. The service licensees, to whom SESG licensees will provide satellite-
based resources, are already governed by Adjusted Gross Revenue (AGR)
based License Fee regime. Therefore, it would be desirable to keep the License
Fee payable by SESG licensees as minimum possible.
As the SESG licensees will not provide any service directly to end customers,
only a token License Fee of Re. 1 per annum shall be levied on the SESG
License.”
D. In its Recommendations dated 18.09.2024 on the “Framework for
Service Authorisations to be Granted Under the Telecommunications Act,
2023”, the Authority recommended that the rate of Authorisation Fee for
Satellite based telecom Service Authorisations should be the same as the
existing rate of License Fee for the Main Service Authorisations, which is 8%,
including a 5% levy towards Digital Bharat Nidhi. Further, the Authority
recommended that at the time of renewal of Service Authorisation, the
Minimum Authorisation Fee should be equal to 10% of Entry Fee of the
respective authorised service and service area, initially paid.
E. In its Recommendations dated 17.02.2025 on the “Recommendations
on the Terms and Conditions of Network Authorisations to be Granted Under
the Telecommunications Act, 2023”, the following was recommended
regarding Authorisation fees for proposed SESG Authorisation:
Considering the scope associated with SESG Provider Authorisation, the
Authority notes that it does not involve the provision of services directly to end
customers. Instead, the provision of networks under this authorisation are
180intended only for telecom service providers. Therefore, the Authority is of the
view that it is appropriate not to levy any authorisation fee for SESG Provider
Authorisation.
F. In the Gazette notification dated 05.09.2025 on the “Draft
Telecommunication (Authorisation for Provision of Main Telecommunication
Services) Rules, 2025” issued by the DoT, the following is mentioned regarding
rate of authorisation fee in Chapter 4 relating to Financial Conditions:
Para 26 Fee and Charges:
(2) An authorised entity shall pay an annual authorisation fee for each
authorisation, payable from the effective date of such authorisation, which
shall be eight per cent of the AGR:
Provided that from the second year of the effective date of the authorisation,
and for each subsequent year, the authorisation fee shall be the higher of: (a)
the amount specified under sub-rule (2), or (b) thirty percent of the applicable
entry fee as specified in Schedule A.
Provided further that in case of renewal of an authorisation, the authorisation
fee shall be subject to a minimum of thirty percent of the entry fee of the
respective authorisation from the effective date of renewal.
Provided also that in case of migration of an existing license to a relevant
authorisation, the authorisation fee shall be subject to a minimum of thirty
percent of the entry fee of the respective authorisation from the effective date
of migration.
181G. DoT in its Gazette notification dated 09.10.2025 on the
“Telecommunications (Authorisation for Telecommunication Network) Rules,
2025” provided the following conditions for Authorisation Fee regarding
Satellite Earth Station Gateway (SESG) provider authorisation.
“There shall be no authorisation fee payable by the authorised entity in respect
of the SESG provider authorization under this Part D.”
3.40. Keeping in view the extant licensing framework, past recommendations by
TRAI and Draft rules notified by DoT, the Authority solicits the views of
stakeholders on the following sets of questions:
Issues for consultation:
Q38. What should be the rate of Authorisation Fee for a Satellite
Communication Network (SCN) authorised entity? Please
provide detailed justification in support of your response.
Q39. Should a Minimum Authorisation Fee be applicable for the
proposed SCN Authorisation? If yes, what should be the
Minimum Authorisation Fee be for the proposed SCN
Authorisation? Please provide detailed justification in support
of your response.
Q40. What should be the appropriate payment terms & conditions
for Authorisation Fees? Please provide detailed justification in
support of your response.
182F 4. Bank Guarantee
3.41. Regarding the appropriate provisions for Bank Guarantees the extant licensing
regime, past recommendations as well as Draft Rules under
Telecommunications Act, 2023 could provide useful reference. Accordingly, the
same are discussed below:
A. In the Unified License (UL) Agreement, it is stated that the Licensee shall
submit Financial Bank Guarantee (BG) for an amount of Rupees Six Lakh for
VSAT (National Area) service authorisation and Rupees Twenty Lakh for
GMPCS (National Area) service authorisation before signing the License
Agreement or subsequent authorization of service(s), as the case may be, valid
for one year, from any Scheduled Bank or Public Financial Institution duly
authorized to issue such Bank Guarantee, in the prescribed Proforma given in
license agreement. Subsequently, the amount of bank guarantee shall be
equivalent to 20% of the estimated sum payable (of License fee for two
quarters and other dues not otherwise securitized). The amount of FBG shall
be subject to periodic review on six monthly basis by the Licensor and shall be
renewed from time to time.
Regarding Performance Bank Guarantee (PBG), the UL states that Licensee
shall submit Financial Bank Guarantee (BG) for an amount of Rupees Ten Lakh
for VSAT (National Area) service authorisation and Rupees Fifty Lakh for
GMPCS (National Area) service authorisation. There is no provision for
mandatory regular/ periodic review of PBG amount.
The following provisions cover the FBG/ PBG processes in Unified License
21. BANK GUARANTEES:
21.1 Performance Bank Guarantee: Performance Bank Guarantee (PBG) in
prescribed format at Annexure-III of this license agreement shall be submitted
183separately for each service and service area for the amount as per Annexure-
II, subject to a maximum of Rs 44 Crore initially, before signing the License
Agreement or subsequent authorization of service(s), as the case may be, valid
for one year, from any scheduled bank or public financial institution duly
authorized to issue such bank guarantee, to cover violation of license
conditions and to ensure the performance under the license agreement
including compliance of instructions issued by the Licensor from time to time.
The PBGs shall be maintained and kept valid by the licensee during the entire
currency of the license agreement. However, the Licensor may increase the
value of PBGs whenever any demand is raised for non-compliance of terms
and conditions of License/authorization to the extent it remains un-securitized
by the existing PBGs, which shall be maintained till clearance of such demand
by the licensee.
21.2 Financial Bank Guarantee: The Licensee shall submit Financial Bank
Guarantee (FBG) separately for each service and service area for the amount
as per Annexure-II, subject to a maximum of Rs 8.8 Crore initially before
signing the License Agreement or subsequent authorization of service(s), as
the case may be, valid for one year, from any Scheduled Bank or Public
Financial Institution duly authorized to issue such Bank Guarantee, in the
prescribed Proforma at Annexure IV of this license agreement. Subsequently,
the amount of FBG shall be equivalent to 20% of the estimated sum payable
(of License fee for two quarters and other dues not otherwise securitized). The
amount of FBG shall be subject to periodic review on six monthly basis by the
Licensor and shall be renewed from time to time.
21.3 Initially, the Bank Guarantees (FBG as well as PBG) shall be valid for a
period of one year and shall be renewed from time to time. The Licensee, on
its own, shall extend the validity period of the Bank Guarantees at least one
month prior to date of its expiry without any demand or notice from the
Licensor on year to year basis. Any failure to do so, shall amount to violation
184of the terms of the License and entitle the Licensor to encash the Bank
Guarantees and to convert into a cash security without any reference to the
Licensee at his risk and cost. No interest or compensation whatsoever shall be
payable by the Licensor on such encashment.
21.4 Where the Bank Guarantees have been encashed partially, the licensee
on such occasions, shall restore the encashed guarantees to the full amount.
Any failure to do so shall amount to violation of the terms and conditions of
the license.
21.5 Without prejudice to its rights of any other remedy, Licensor may encash
Bank Guarantee (FBG as well as PBG) in case of any breach in terms &
conditions of the License by the Licensee.
B. Regarding Access Network Providers, the Authority in its
Recommendations dated 19.08.2021, recommended financial conditions
applicable to the Access Network Provider and the same is reproduced below
for determination of bank guarantee for SCN Authorised entity.
“The Authority recommends that since the combined scope of Access
Network Provider and UL-VNO (Access service) is equal to the scope of
a Licensee with Access Service authorization under UL, the Minimum
Equity, Minimum Net worth, Entry Fee, and FBG/PBG requirements for
the proposed Access Network provider authorization may be arrived at
by deducting the amounts prescribed for UL (VNO–Access Service) from
the amount prescribed for UL-Access Service authorization.”
C. In its Recommendations dated 29.11.2022 on “Recommendations on
Licensing Framework for Establishing and Operating Satellite Earth Station
Gateway (SESG)” the Authority recommended that no Bank Guarantees
(Performance Bank Guarantee or Financial Bank Guarantee) shall be obtained
from the SESG Licensee.
185D. Further, the Authority in its Recommendations dated 18.09.2024 on the
“Framework for Service Authorisations to be Granted Under the
Telecommunications Act, 2023”, recommended the following for Satellite-
based telecommunication service authorisation:
(a) For the initial year, the amount of Bank Guarantee (BG) for Satellite-
based Telecommunication Service Authorisation should be INR 0.50
crore for initial year.
(b) For the subsequent years, the amount of Bank Guarantee should be
higher of the initial year BG or 20% of the estimated sum payable (of
authorisation fee for two quarters and other dues not otherwise
securitized).
(c) The Bank Guarantee should be submitted to securitize the authorisation
fee and other dues not otherwise securitized, to cover the violation of
conditions of authorisation and to ensure the performance under
authorisation/regulations including compliance of instructions issued by
the Central Government/TRAI from time to time.
(d) The Bank Guarantee should be subject to periodic review on six monthly
basis by Central Government.
(e) The BG should be subject to the detailed provisions/ conditions that have
been included in the Financial Terms and Conditions for
Telecommunication (Main Service Authorisation) Rules.
E. The Authority in its Recommendations dated 17.02.2025 on the
“Recommendations on the Terms and Conditions of Network Authorisations to
be Granted Under the Telecommunications Act, 2023”, the Authority
recommended that no bank guarantee should be submitted for SESG Provider
Authorisation.
186F. In the Gazette notification dated 05.09.2025 on the “Draft
Telecommunication (Authorisation for Provision of Main Telecommunication
Services) Rules, 2025” issued by the DoT, prescribed the bank guarantee
requirements under Schedule A and mentioned the following regarding Bank
Guarantee in Chapter 4 relating to Financial Conditions:
“28. Guarantee requirements for authorisation
(1) An authorised entity shall, for the purpose specified in sub-rule (2),
submit a guarantee in the form and manner, as may be specified on the
portal, of any of the following types:
(a) a bank guarantee from any scheduled bank or public financial
institution;
(b) an insurance surety bond, issued by an insurance company, in
accordance with the applicable rules and guidelines issued by the
Insurance Regulatory and Development Authority of India; or
(c) non-interest-bearing security deposit with the Central
Government.
(2) The purpose of the guarantee as specified in sub-rule (1) is to
provide security for due compliance of all the terms and conditions of
the authorisation, including but not limited to payment of authorisation
fee, spectrum charges linked to AGR, penalty imposed for contravention
or breach of any of the terms and conditions of the authorisation or non-
compliance of notifications, orders, directions, or guidelines, issued by
the Central Government from time to time, and any other dues payable
under the authorisation.
(3) The guarantee submitted under sub-rule (1) shall be subject to
periodic annual review by the Central Government and an authorised
entity shall maintain a valid guarantee for the duration of authorisation,
or until all dues under the authorisation are cleared, whichever is later:
187Provided that the initial guarantee submitted pursuant to the letter of
intent shall be for the amount as specified in respect of each relevant
authorisation in Schedule A, and for the subsequent years of
authorisation, for an amount determined by the Central Government,
based on the higher of: (a) the amount of initial guarantee, and (b)
twenty per cent of combined estimated sum, calculated in accordance
with the procedure specified for this purpose on the portal, of the
following:
(i) authorisation fee for two quarters;
(ii) spectrum charges linked to AGR for two quarters; and
(iii) any other dues that are not otherwise secured.
(4) An authorised entity shall extend the validity period of such
guarantee at least one month prior to the date of its expiry, without any
demand or notice from the Central Government.
(5) Any failure to maintain a valid guarantee at any time during the
duration of the authorisation, or until all dues under the authorisation
are cleared, whichever is later, shall entitle the Central Government to
encash the bank guarantee, claim the insurance surety bond, or
appropriate the security deposit, as the case may be, without any notice
to the authorised entity:
Provided that no interest or compensation shall be payable by the
Central Government on encashment, claim or appropriation of such
guarantee.
(6) When the guarantee has been encashed, claimed or appropriated,
fully or partially, an authorised entity on such occasions shall restore
such encashed, claimed or appropriated guarantee, as the case may be,
to the full amount within fifteen days of such encashment, claim, or
appropriation:
188Provided that the Central Government may, upon receipt of a written
request from the authorised entity before the expiry of the period
specified in sub-rule (6), allow a one-time extension not exceeding ten
days, for such restoration, subject to reasons being recorded in writing.
(7) Without prejudice to its rights or any other remedy, including those
under the Telecommunications (Adjudication and Appeal) Rules, 2025,
the Central Government may encash, claim or appropriate the guarantee
in the following cases:
(a) non-payment of authorisation fee, spectrum charges linked to
AGR, or any other dues payable under the authorisation or
assignment;
(b) non-payment of dues arising out of penalties imposed by the
Central Government; or
(c) breach of any other term or condition of authorisation or
assignment.
(8) On revocation, surrender, or expiry of the authorisation, the relevant
guarantee shall be released to an authorised entity only after ensuring
clearance of all dues, which an authorised entity is liable to pay to the
Central Government:
Provided that in case of failure to pay the amounts due to the Central
Government, the outstanding amounts shall be realized through
encashment, claim or appropriation of the guarantee without prejudice
to any other actions for recovery of the amounts due to the Central
Government, without any further communication to such authorised
entity.”
The Initial Bank Guarantee requirements for various Service authorisations
specified under Schedule A is given below.
189SCHEDULE A: INITIAL GUARANTEE FOR AUTHORISATIONS FOR
TELECOMMUNICATION SERVICES
Category of Service Service Initial Guarantee
S. No.
Authorisations Authorisation (in Rs.)
Unified Service
1. 44 crores
Authorisation
Access Service
2. 2 crores
Authorisation
Internet Service
Main Authorisation
3. 4 lakh
Telecommunications (National
Service Authorisations Area)
(NSO) Internet Service
Authorisation
4. 20,000
(Telecom circle/
Metro Area)
Long Distance
5. 1 crore
Service Authorisation
Unified Service
6.
Authorisation 4.4 crores
Access Service
7.
Authorisation 20 lakh
Main Telecommunication
Wireline Access
8. Service Authorisations 10,000
Service Authorisation
(VNO)
Internet Service
Authorisation
9. 1 lakh
(National
Area)
190Internet Service
Authorisation
10.
(Telecom circle/
10,000
Metro Area)
Long Distance
11. 50 lakh
Service Authorisation
3.42. Keeping in view the extant licensing framework, past recommendations by TRAI
and Draft rules notified by DoT, the Authority solicits the views of stakeholders
on the following sets of questions:
Issue for consultation:
Q41. What should be the terms and conditions for Bank Guarantees,
including both Performance Bank Guarantee (PBG) and
Financial Bank Guarantee (FBG), for SCN authorised entities?
Please provide detailed justification in support of your
response.
F 5. Application processing fee
3.43. Regarding the requirements of Application Processing Fee, reference can be
made to the existing licensing regime, past recommendations and the Draft
Rules under the Telecommunications Act. Accordingly, the following are dealt
with below:
A. In the Unified License (UL) Agreement, it is stated that application
processing fee of Rupees Fifty Thousand for VSAT (National Area) service
191authorisation and Rupees Fifty Thousand for GMPCS (National Area) service
authorisation is to be paid by the licensee.
B. In its Recommendations dated 29.11.2022 on “Recommendations on
Licensing Framework for Establishing and Operating Satellite Earth Station
Gateway (SESG),” the Authority recommended that, for applications seeking
the grant of an SESG license, a processing fee of Rupees Five Thousand be
levied. Further, a processing fee of Rupees Five Thousand was also
recommended for each application seeking permission to establish an
additional SESG.
C. In its Recommendations dated 18.09.2024 on the “Framework for
Service Authorisations to be Granted Under the Telecommunications Act,
2023”, the Authority recommended an application processing fee of Rupees
Ten Thousand for Satellite-based telecommunication service authorisation.
D. In its Recommendations dated 17.02.2025 on the “Recommendations
on the Terms and Conditions of Network Authorisations to be Granted Under
the Telecommunications Act, 2023”, the Authority recommended an
application processing fee of Rupees Ten Thousand for SESG Provider
Authorisation.
E. DoT in Chapter II of its Gazette notification dated 05.09.2025 on the
“Draft Telecommunication (Authorisation for Provision of Main
Telecommunication Services) Rules, 2025” has prescribed the Application
Processing Fee requirements under Schedule A. The Application Processing
Fee specified under Schedule A for various Service authorisations is given
below:
192SCHEDULE A: PROCESSING FEE FOR AUTHORISATIONS FOR
TELECOMMUNICATION SERVICES
Processing
Category of Service Service
S. No. Fee
Authorisations Authorisation
(in Rs.)
Unified Service
1. 1 lakh
Authorisation
Access Service
2. 10,000
Authorisation
Internet Service
Main Authorisation
3. 10,000
Telecommunications (National
Service Authorisations Area)
(NSO) Internet Service
Authorisation
4. 10,000
(Telecom circle/
Metro Area)
Long Distance
5. 10,000
Service Authorisation
Unified Service
6.
Authorisation 1 lakh
Access Service
7. Main
Authorisation 10,000
Telecommunication
Wireline Access
8. Service Authorisations
Service Authorisation 10,000
(VNO)
Internet Service
9. Authorisation 10,000
(National
193Processing
Category of Service Service
S. No. Fee
Authorisations Authorisation
(in Rs.)
Area)
Internet Service
Authorisation
10.
(Telecom circle/
10,000
Metro Area)
Long Distance
11. 10,000
Service Authorisation
3.44. Keeping in view the extant licensing framework, past recommendations by
TRAI and Draft rules notified by DoT, the Authority solicits the views of
stakeholders on the following sets of questions:
Issue for consultation:
Q42. What should be the application processing fee for Satellite
Communication Network (SCN) authorised entity? Please
provide detailed justification in support of your response.
3.45. The above sections have dealt with financial conditions pertaining to regulation
and treatment of charges paid by Service authorised entities to SCN authorised
entities, related aspects of revenue and deductions, consequential definitions
of GR/ ApGR & AGR, charging mechanism for Spectrum Charges as well as
other financial conditions related to Minimum Equity and Networth
requirements, Entry Fees, Authorisation Fees, Bank Guarantees, Application
Processing Fees. Regarding any other financial terms and conditions which
194should be applicable for the proposed SCN Authorisation, the following
question is posed for soliciting stakeholders’ comments:
Issue for consultation:
Q43. Apart from the financial provisions discussed earlier, are there
any other financial terms and conditions that should be made
applicable for the proposed Satellite Communication Network
authorisation? Kindly provide a detailed response with
justifications.
195CHAPTER IV: ISSUES FOR CONSULTATION
Q1. What should be the eligibility conditions, area of operation, validity
period of authorisation and the scope of the proposed Satellite
Communication Network (SCN) authorisation under Section 3(1)(b)
of the Telecommunications Act, 2023? Kindly provide a detailed
response with justification.
Q2. What should be the terms and conditions (general, technical,
operating, security related etc.) that should be made applicable for
the proposed Satellite Communication Network authorisation? Kindly
provide a detailed response with justification.
Q3. Which type of authorised entities should be permitted to seek
Satellite Communication Network as a Service (SCNaaS) from the
entities holding the proposed Satellite Communication Network
authorisation? Whether virtual network operators (VNOs) should also
be permitted to seek SCNaaS? Kindly provide a detailed response with
justification.
Q4. Whether the SCN authorised entity establishing, operating,
maintaining, or expanding the baseband system alongwith SCN
should be mandated to extend control, visibility, resource allocation
and management of the telecommunication services, being
provisioned using SCN to users, to the partnering entity on mutually
agreed terms and conditions? Please provide a detailed response with
justification.
196Q5. What provisions should be included in the terms and conditions of
Satellite Communication Network (SCN) authorisation considering
the policy/ Act in the Space sector? Kindly provide a detailed response
with justification.
Q6. Whether there is any need for mandating a reference agreement
between the entities holding the proposed Satellite Communication
Network authorisation and the authorised entities providing
telecommunication service? If yes, what should be the salient
features of the reference agreement between such entities? Kindly
provide a detailed response with justification.
Q7. With respect to the interconnection with the proposed Satellite
Communication Network Authorised Entities, whether there are any
other issues in addition to those raised in TRAI’s consultation paper
on ‘Review of existing TRAI Regulations on Interconnection matters’
dated 10.11.2025, which require to be addressed in this consultation
process? Please provide a detailed response with justification.
Q8. Any other inputs or suggestions relevant to the proposed Satellite
Communication Network authorisation may kindly provided with
detailed justification.
Q9. Which of the following services should be permitted to be provided
by using the SCNs established by the proposed SCN authorised
entities:
(a) Fixed Satellite Service (FSS);
(b) Mobile Satellite Service (MSS);
(c) Direct-to-Device (D2D) Service via satellite by using MSS
spectrum;
197(d) Direct-to-Device (D2D) Service via satellite by using IMT
spectrum?
Kindly provide a detailed response with justification.
Q10. Whether D2D Service via satellite by using IMT spectrum should be
permitted at this stage itself, or should this matter be examined after
considering the outcome of WRC-2027? Kindly provide a detailed
response with justification.
Q11. From the perspective of holding spectrum for the feeder link and the
user link on SCNs, which of the following combinations should be
permitted at the SCNs established by the proposed SCN authorised
entities:
Combination Spectrum for the feeder Spectrum for the user
No. link held by - link held by -
1 SCN authorised entity SCN authorised entity
Partnering entity
2 SCN authorised entity
(service provider)
Partnering entity
3 SCN authorised entity
(service provider)
Partnering entity Partnering entity
4
(service provider) (service provider)
Kindly provide a detailed response with justification.
Q12. Which of the following types of spectrum should be assigned to the
proposed SCN authorised entities:
(a) Spectrum in the frequency bands allocated for FSS
(b) Spectrum in the frequency bands allocated for MSS
198(c) Any other?
Kindly provide a detailed response with justification.
Q13. What should be the broad policy and regulatory framework for the
assignment of FSS spectrum and/ or MSS spectrum to the proposed
SCN authorised entities? Specifically, -
(a) NGSO-based FSS and GSO/ NGSO-based MSS: Whether in respect
of NGSO-based FSS and GSO/ NGSO-based MSS, TRAI’s
recommendations dated 09.05.2025 on ‘Terms and Conditions
for the Assignment of Spectrum for Certain Satellite-Based
Commercial Communication Services’ to DoT (read with the
TRAI’s response dated 08.12.2025 to DoT’s back-reference dated
12.11.2025) should be made applicable to SCN authorised
entities with necessary modifications? If yes, what modifications
would be required in the terms and conditions for the assignment
of spectrum for NGSO-based FSS and GSO/ NGSO-based MSS? If
no, what should be the terms and conditions for this purpose?
(b) GSO-based FSS: Whether the terms and conditions for the
assignment of spectrum to SCN authorised entities for GSO-
based FSS should be analogous to those recommended by TRAI
for NGSO-based FSS and GSO/ NGSO-based MSS through its
recommendations on ‘Terms and Conditions for the Assignment
of Spectrum for Certain Satellite-Based Commercial
Communication Services’ dated 09.05.2025 (read with the TRAI’s
response dated 08.12.2025 to DoT’s back-reference dated
12.11.2025) with necessary modifications? If yes, what
modifications would be required for GSO-based FSS? If no, what
should be the terms and conditions for this purpose?
Kindly provide a detailed response with justification.
199Q14. What should be the eligibility conditions for seeking administrative
assignment of FSS spectrum and/or MSS spectrum by the proposed
SCN authorised entities? Kindly provide a detailed response with
justification.
Q15. Whether there are any other inputs or suggestions relevant to the
assignment of FSS spectrum and/ or MSS spectrum to the entities
holding the proposed SCN authorisation? Kindly provide a detailed
response with justification.
Q16. In case it is decided to permit the proposed SCN authorised entity to
utilize the FSS spectrum and/ or MSS spectrum assigned to a service
authorised entity (“partnering entity”) for the purpose of providing
SCNaaS to the partnering entity –
whether there is a need to establish a policy and regulatory
framework for enabling the SCN authorised entity to enter into an
agreement/ arrangement with the partnering entity to utilize FSS
spectrum and/ or MSS spectrum assigned to such partnering entity
for the purpose of providing SCNaaS to the partnering entity?
(i) If yes, what should be the terms and conditions under such a
framework?
(ii) If no, in what manner such agreements/ arrangements should
be enabled and regulated?
Kindly provide a detailed response with justification.
Q17. Whether there are any other inputs or suggestions relevant to the
agreement/ arrangement between the proposed SCN authorised
entities and service authorised entities (“partnering entities”) to
200utilize the FSS spectrum and/ or MSS spectrum assigned to such
partnering entities? Kindly provide a detailed response with
justification.
Q18. In case it is decided to permit D2D service via satellite by using the
spectrum in the frequency bands allocated for MSS such as L-band
and S-band, whether there is a need to establish a policy and
regulatory framework for enabling and regulating such a service? If
yes, kindly suggest a broad framework for this purpose and the key
terms and conditions to be included under such a framework? Kindly
provide a detailed response with justification.
Q19. In case with a view to enable D2D service via satellite using IMT
spectrum, it is decided to permit the proposed SCN authorised entity
to utilize IMT spectrum assigned to a service authorised entity
(“partnering entity”) for the purpose of providing SCNaaS to the
partnering entity, -
(a) whether there is a need to establish a policy and regulatory
framework for enabling the SCN authorised entity to enter into
an agreement/ arrangement with the partnering entity to
utilize IMT spectrum assigned to such partnering entity for the
purpose of providing SCNaaS to the partnering entity? If yes,
what should be the terms and conditions under such a
framework? If no, in what manner such arrangements should
be enabled and regulated?
(b) Which frequency bands identified for IMT should be considered
for this purpose? Specifically, whether only FDD-based
frequency bands should be considered?
(c) For the frequency bands identified for IMT where D2D is
decided to be permitted, whether the National Frequency
201Allocation Plan (NFAP) should be modified to include MSS on a
secondary basis? If yes, kindly furnish your suggestion for the
proposed modification(s).
(d) To mitigate the issues related to cross-border interference,
whether any other condition in addition to Article 4.4 of the
ITU-Radio Regulations is required to be made applicable?
(e) What regulatory framework should be established for ensuring
interference-free operation of D2D service via satellite by using
IMT spectrum within the country? Specifically, which of the
following methods should be followed:
(i) The SCNs established by SCN authorised entities should
be permitted to be used to provide D2D service via
satellite by using IMT spectrum only if a single partnering
entity (access service provider) holds the relevant IMT
frequency channel in all the 22 LSAs of the country and
agrees to permit the usage of its IMT frequency channel
by the SCN authorised entity at its SCN for the purpose of
providing SCNaaS; or
(ii) The SCNs established by SCN authorised entities should
be permitted to be used to provide D2D service via
satellite by using IMT spectrum if one or more access
service providers – together holding the assignment of
the relevant IMT frequency channel across all 22 licensed
service areas of the country – agree to allow the usage of
their IMT frequency channel by the SCN authorised entity
at its SCN for the purpose of providing SCNaaS; or
(iii) Any other method?
Kindly provide a detailed response with justification.
202Q20. Whether there are any other inputs or suggestions with respect to the
delivery of D2D services via satellite through SCNs established by the
proposed SCN authorised entities? Kindly provide a detailed response
with justification.
Q21. Any other inputs or suggestions related to the use of spectrum on
SCNs established by the proposed SCN authorised entities may be
submitted with proper explanation and justification.
Q22. Regarding the agreement between SCN Authorised entity and a
Service Authorised entity providing FSS/ MSS to the end user, for
provision of SCNaaS to the Service Authorised entity, which may or
may not include provisions for utilisation of FSS/ MSS spectrum
assigned to the Service entity, is there a need to regulate charges
exchanged between the two entities under such an agreement? If
yes, what would be the possible parameters, including SLA
parameters, Spectrum utilisation etc., which would form the basis of
regulation? Please provide your response with justification.
Q23. In case of an agreement between an SCN Authorised entity and a
Service Authorised entity providing D2D services using MSS
spectrum, for provision of SCNaaS to the Service Authorised entity,
which may or may not include provisions for utilisation of MSS
spectrum assigned to the Service entity amongst other possible
spectrum utilisation arrangements, is there a need to regulate
charges exchanged between the two entities under such an
agreement? If yes, what would be the possible parameters, including
SLA parameters, Spectrum utilisation etc., which would form the
basis of regulation? Please provide your response with justification.
203Q24. In case of an agreement between an SCN Authorised entity and a
Service Authorised entity providing D2D services using IMT spectrum,
for provision of SCNaaS to the Service Authorised entity, which may
or may not include utilising spectrum for feeder link assigned to the
service entity, besides utilising IMT spectrum assigned to the Service
Authorised entity, is there a need to regulate charges exchanged
between the two entities under such an agreement? If yes, what
would be the possible parameters, including SLA parameters,
Spectrum utilisation etc., which would form the basis of such
regulation? Please provide your response with detailed justification.
Q25. Should the charges paid by the Service Authorised entity (providing
either FSS, MSS or D2D service to the end user) to SCN Authorised
entity for provisioning of Satellite Communication Network as a
Service (SCNaaS), be permitted to be deducted from ApGR of the
Service Authorised entity for the purpose of arriving at AGR for levy
of License/ Authorisation Fees and Spectrum charges? Please provide
your response with justification.
Q26. If the answer to the above question is no, please suggest the
methodology for considering such charges in determination of AGR of
both the service authorised and SCN authorised entities, for purposes
of levying Authorisation/ License fees & Spectrum Charges? Please
provide your response with justification.
Q27. What should be the appropriate definition of GR, AGR, and ApGR for
SCN Authorisation, including the relevant items of revenue,
exclusions and deductions? Additionally, are there any operational or
non-operational revenue elements specific to SCN Authorised entities
204that should be considered within the scope of definitions of GR, AGR
and ApGR? Please provide detailed response with specific line items
of revenue, exemptions and deductions, and specific definitions for
GR/ApGR/AGR.
Q28. In case FSS/MSS or any other spectrum is assigned to the Satellite
Communication Network (SCN) authorised entities for provisioning of
SCNaaS to Service authorised entities, what should be the broad
financial terms & conditions of such an assignment?
Q29. Should the spectrum charges for Satellite Communication Network
(SCN) authorised entities be based on the spectrum charging
framework as per the Recommendations dated 09.05.2025 applicable
for Satellite based commercial communications services?
Accordingly, what should be the appropriate spectrum charging
framework and spectrum charges applicable for a SCN Authorised
entity? Please provide your response with detailed justification.
Q30. If spectrum charges are to be levied on the basis of AGR of the SCN
Authorised entity, are there any specific operational/ non-operational
revenue items that should be excluded from AGR for the purpose of
determination of spectrum charges? Please provide your response
with detailed justification.
Q31. If the spectrum charges are not to be levied on basis of AGR of the
SCN Authorised entity, what should be the appropriate spectrum
charging mechanism and the corresponding level of spectrum
charges applicable to Satellite Communication Network (SCN)
authorised entities? Please provide your response with detailed
justification.
205Q32. In case D2D services are permitted to be provided using the MSS
frequency bands such as L & S bands, what should be the appropriate
spectrum charging framework for such bands when utilised for
provision of D2D satellite based services? Please provide detailed
justification for your response, including the methodology for
determination of such spectrum charges, if required.
Q33. In case D2D services are permitted to be provided using the IMT
spectrum assigned to the Service Authorised entity (‘partnering
entity’) providing D2D satellite-based telecommunication services,
should any additional spectrum charges be levied on the Service
Authorised entity (‘partnering entity’) for use of IMT spectrum in the
provision of satellite based D2D services? If yes, what should be the
basis and quantum of such additional spectrum charges payable by
the Service Authorised entity to the Government? In either case,
please provide detailed justification for your response, including the
detailed methodology for determination of such spectrum charges.
Q34. In case spectrum is assigned to Satellite Communication Network
(SCN) authorised entities, what should be the appropriate payment
terms for spectrum charges payable by Satellite Communication
Network (SCN) authorised entities? Please provide your response
with justification.
Q35. In case Minimum Spectrum Charges are to be applicable for SCN
authorised entities, what should be the payment terms for the
minimum spectrum charges for SCN authorised entities? Please
provide your response with detailed justification.
206Q36. What should be the minimum equity and minimum networth
requirements for a Satellite Communication Network (SCN)
authorised entity? Please provide detailed justification in support of
your response.
Q37. What should be the entry fee for proposed Satellite Communication
Network (SCN) authorisation? Please provide detailed justification in
support of your response.
Q38. What should be the rate of Authorisation Fee for a Satellite
Communication Network (SCN) authorised entity? Please provide
detailed justification in support of your response.
Q39. Should a Minimum Authorisation Fee be applicable for the proposed
SCN Authorisation? If yes, what should be the Minimum Authorisation
Fee be for the proposed SCN Authorisation? Please provide detailed
justification in support of your response.
Q40. What should be the appropriate payment terms & conditions for
Authorisation Fees? Please provide detailed justification in support of
your response.
Q41. What should be the terms and conditions for Bank Guarantees,
including both Performance Bank Guarantee (PBG) and Financial
Bank Guarantee (FBG), for SCN authorised entities? Please provide
detailed justification in support of your response.
Q42. What should be the application processing fee for Satellite
Communication Network (SCN) authorised entity? Please provide
detailed justification in support of your response.
207Q43. Apart from the financial provisions discussed earlier, are there any
other financial terms and conditions that should be made applicable
for the proposed Satellite Communication Network authorisation?
Kindly provide a detailed response with justifications.
208ANNEXURES
Annexure 1.1: DoT’s Reference dated 26.07.2024 on the ‘Terms and
Conditions of Network Authorizations to be Granted under the
Telecommunications Act, 2023’
209210211212213214Annexure 1.2: DoT’s Reference dated 17.10.2024 for an Authorisation for
Satellite Communication Network under Section 3(b) of the
Telecommunications Act, 2023
215216Annexure 1.3: DoT’s Reference dated 29.08.2025 to TRAI’s Response to
the Back-Reference dated 03.07.2025
217218Annexure 1.4: DoT’s Clarification Letter dated 07.10.2025
219220Annexure 2.1: Scope of Various Service Authorisations and Network
Authorisations Proposed by DoT in the Draft Rules
A. Scopes of Main Services Authorisations
(1) Scope of Unified Service Authorisation
1. The provisions of this Part A shall apply to authorised entities holding unified
service authorisations.
2. The scope of unified service authorisation for NSO comprises the scope of:
(a) access service authorisation for NSO;
(b) internet service authorisation for NSO; and
(c) long distance service authorisation for NSO.
3. The scope of unified service authorisation for VNO comprises the scope of:
(a) access service authorisation for VNO
(b) internet service authorisation for VNO; and
(c) long distance service authorisation for VNO.
4. An authorised entity holding a unified service authorisation may provide the
telecommunication services specified under sub-rule (2) or sub-rule (3), as the
case may be, through wireline or wireless terrestrial networks, satellite
networks including non-terrestrial networks and GMPCS networks, or
submarine networks.
5. The specific terms and conditions specified under these rules for access service
authorisation, internet service authorisation and long-distance service
221authorisation, shall be applicable for providing the respective
telecommunication services under the unified service authorisation, unless
specified otherwise for unified service in this Part A of Chapter 8.
6. An authorised entity holding a unified service authorisation, shall only provide
services under the scope of its authorisation, and not any other service(s)
which requires a separate authorisation from the Central Government.
VNO Authorised to provide unified services
7. A VNO authorised to provide unified service shall follow the terms and
conditions of the unified service authorisation along with the following specific
conditions:
(a) The VNO may enter into mutual agreements as specified in sub-rule (3)
and sub-rule (4) of rule 5, to connect its network to its parent NSO’s
network and provide the details of such agreements to the Central
Government, and update any modifications to such agreements, within
seven days, in the manner as specified on the portal.
(b) The VNO shall not interconnect with telecommunication networks of any
other NSO, other than its parent NSO, and any interconnection with
other authorised telecommunication networks shall be undertaken only
by its parent NSO.
(c) The other conditions as applicable to VNO for access service, VNO for
internet service and VNO for long distance service shall also be applicable
to the VNO for unified service for providing the respective
telecommunication services.
222(2) Scope of Access Service Authorisation
1. The provisions of this Part B shall apply to authorised entities holding access
service authorisation.
2. The scope of access service authorisation for NSO comprises of the following:
(a) transmission, emission or reception of voice and non-voice messages,
including video messages;
(b) scope of the internet service authorisation;
(c) scope of the enterprise communication service authorisation, as specified
under the rules for miscellaneous telecommunication services;
(d) internet telephony service;
(e) intra-circle long distance calls; and
(f) Captive Non-Public Network (CNPN) as a telecommunication service.
3. The scope of access service authorisation for VNO comprises of the following:
(a) transmission, emission or reception of voice and non-voice messages,
including video messages;
(b) scope of the internet service authorisation for VNO;
(c) scope of the enterprise communication service authorisation, as specified
under the rules for miscellaneous telecommunication services;
(d) internet telephony service; and
(e) intra-circle long distance calls.
4. An authorised entity may provide the telecommunication services specified
under sub-rule (2) or sub- rule (3) to users over:
(a) mobile terminals;
(b) fixed wireline access terminals;
(c) fixed wireless access terminals;
223(d) FSS (Fixed Satellite Service) terminals including VSAT (Very Small
Aperture Terminal) and Earth Station in Motion terminals;
(e) MSS (Mobile Satellite Service) terminals;
(f) machines including IoT devices and sensor type terminals;
(g) routers or switches; or
(h) any other type of terminal as specified on the portal, for this purpose.
5. An authorised entity holding an access service authorisation may provide the
telecommunication services specified under sub-rule (2) or sub-rule (3), as
the case may be, through wireline or wireless terrestrial networks, satellite
networks including non-terrestrial networks and GMPCS network, or
submarine networks.
6. The scope of the wireline access service authorisation for VNO shall be
restricted to the scope of the access service authorisation for VNO using the
wireline access network, and such authorised entity may provide the
telecommunication services to users over fixed wireline access terminals only.
7. An authorised entity holding an access service authorisation, shall only provide
services authorised under the scope of its authorisation, and not any other
telecommunication services which may require a separate authorisation from
the Central Government.
8. The specific terms and conditions specified under these rules for internet
service authorisation except for limited internet telephony, and enterprise
communication service authorisation under the rules for miscellaneous
telecommunication services, shall be applicable for providing the respective
telecommunication services under the access service authorisation, unless
specified otherwise for access service in this Part B of Chapter 8.
224VNO authorised to provide Access Service
9. A VNO authorised to provide access service shall follow the terms and
conditions of access service authorisation along with the following specific
conditions:
(a) The VNO may enter into mutual agreements as specified in sub-rule (3)
and sub-rule (4) of rule 5, to connect its network to its parent NSO’s
network and provide the details of such agreements, and update any
modifications to such agreements, within seven days, in the manner as
specified on the portal.
(b) The VNO shall not interconnect with telecommunication networks of any
other NSO, other than its parent NSO, and any interconnection with
other authorised telecommunication networks shall be undertaken only
by its parent NSO;
(c) The VNO shall not integrate the telecommunication networks obtained
from different NSOs for routing of traffic from one NSO to another NSO;
(d) The VNO shall obtain from its parent NSO a range of telecommunication
identifiers from the telecommunication identifiers allocated to its parent
NSO by the Central Government:
Provided that, VNO may obtain location routing numbers from the
Central Government.
(e) The VNO shall not be assigned any spectrum however, such VNO may
establish its radio access network as per the mutual agreement with its
parent NSO, utilising backhaul spectrum and access spectrum of its
parent NSO.
(f) The VNO shall comply with such security conditions as applicable to its
telecommunication network and telecommunication services.
(g) The specific terms and conditions specified under these rules for internet
service authorisation for VNO except for limited internet telephony, and
225enterprise communication service authorisation under the rules for
miscellaneous telecommunication services, shall be applicable for
providing the respective telecommunication services under the access
service authorisation for VNO, unless specified otherwise for VNO
authorised to provide access service in this Part B of Chapter 8.
VNO authorised to provide Wireline Access Service
10. The VNO having Wireline Access Service authorisation shall follow the relevant
terms and conditions as applicable for provision of wireline access services.
(3) Scope of Internet Service Authorisation
1. The provisions of this Part C shall apply to authorised entities holding internet
service authorisation.
2. The scope of internet service authorisation for NSO comprises of the following:
(a) Internet service;
(b) Limited internet telephony service through public internet using Personal
Computers (PC) or IP based Customer Premises Equipment (CPE)
connecting only the following:
(i) PC to PC, within or outside India;
(ii) PC, device, or adapter, conforming to notified standards, in India
to Public Switched Telecommunication Network (PSTN) or Public
Land Mobile Network (PLMN) user terminals outside India; and
(iii) Any PC, device or adapter, conforming to notified standards,
connected in India with internet node using static Internet Protocol
(IP) address to similar PC, device, or adapter, within or outside
India.
226(c) Domestic Leased circuit;
(d) Internet Lease Line (ILL);
(e) M2M service;
(f) Internet Protocol Television (IPTV) service; and
(g) Scope of IFMC service authorisation, limited to Internet service, under
the rules for miscellaneous telecommunication services.
3. The scope of internet service authorisation for VNO shall comprises of the
following:
(a) Internet service;
(b) Limited internet telephony service through public internet using Personal
Computers (PC) or IP based Customer Premises Equipment (CPE)
connecting only the following:
(i) PC to PC, within or outside India;
(ii) PC, device, or adapter, conforming to notified standards, in India
to Public Switched Telecommunication Network (PSTN) or Public
Land Mobile Network (PLMN) user terminals outside India; and
(iii) Any PC, device or adapter, conforming to notified standards,
connected in India with internet node using static Internet Protocol
(IP) address to similar PC, device, or adapter, within or outside
India.
(c) Domestic Leased circuit;
(d) Internet Leased Line (ILL);
(e) M2M service; and
(f) Internet Protocol Television (IPTV) service.
4. An authorised entity may provide the telecommunication services specified
under sub-rule (2) or sub-rule (3) to fixed users over:
(a) fixed wireline access terminals;
227(b) fixed wireless access terminals;
(c) FSS (Fixed Satellite Service) terminals including VSAT (Very Small
Aperture Terminal) and Earth Station in Motion terminals;
(d) machines including IoT devices and sensor type terminals;
(e) routers or switches; or
(f) any other type of terminal as specified on the portal, for this purpose.
5. A NSO may provide:
(a) bandwidth to other authorised entities or licensees for connecting their
telecommunication network equipment, including backhaul connectivity;
and
(b) internet bandwidth to another authorised entity or licensee, authorised
to provide internet service.
6. An authorised entity may provide M2M service to another authorised entity or
licensee, authorised to provide M2M communication services under applicable
rules.
7. An authorised entity may provide the telecommunication services specified
under sub-rule (2), sub-rule (3), sub-rule (5), or sub-rule (6), as the case may
be, through wireline or wireless terrestrial networks, satellite networks, or
submarine networks.
8. A NSO may establish, operate, maintain or expand the Internet Exchange
Point (IXP) to provide the authorised telecommunication services.
9. A NSO seeking to establish, operate, maintain or expand the International
Internet Gateway (IIG) to provide authorised telecommunication services,
228shall apply to the Central Government, in the form and manner as specified
on the portal and shall obtain separate security clearances in this regard.
10. The Central Government may, on assessment of the application under sub-
rule (9), grant a written approval to such NSO.
11. An authorised entity with International Internet Gateway may sell
International Internet bandwidth to other NSOs providing internet service.
12. An authorised entity may establish, operate, maintain or expand Low Power
Wide Area Network (LPWAN) or an equivalent network using spectrum
exempted from the requirement of assignment under sub-section (6) or sub-
section (7) of section 4 of the Act, for providing M2M service using wireless
terrestrial networks.
13. An authorised entity holding an internet service authorisation, shall only
provide services authorised under the scope of its authorisation, and not any
other service(s) which may require a separate authorisation from the Central
Government.
14. The terms and conditions specified under the rules applicable for
miscellaneous telecommunication services, as applicable for M2M service or
IFMC service authorisations, shall be applicable for providing M2M service or
IFMC service under the internet service authorisation, unless specified
otherwise for internet service in this Part C of Chapter 8.
229VNO authorised to provide Internet Service
15. A VNO authorised to provide internet service shall follow the terms and
conditions of the internet service authorisation, as applicable, along with the
following specific conditions:
(a) The VNO may enter into mutual agreements as specified in sub-rule (3)
and sub-rule (4) of rule 5, to connect its network to its parent NSO’s
network and provide the details of such agreements, and update any
modifications to such agreements, within seven days, in the manner as
specified on the portal.
(b) The VNO shall not interconnect with telecommunication networks of any
other NSO, other than its parent NSO, and any interconnection with
other authorised telecommunication networks shall be undertaken only
by its parent NSO.
(c) The VNO may obtain IP addresses, domain names and any other relevant
requirements either from its NSO or authorised internet registries, and it
may get the IP addresses, obtained from authorised internet registries,
configured in the telecommunication network of its parent NSO(s) and
the details of such IP addresses shall be submitted to the Central
Government, in the form and manner, as may be specified.
(d) The VNO shall comply with such security conditions as applicable to its
telecommunication network and telecommunication services.
(e) The VNO having connectivity from multiple NSOs may be required to
install lawful interception system and lawful interception and monitoring
facilities, as specified by the Central Government, and in such cases, the
authorised entities providing upstream bandwidth may not be required
to monitor such internet bandwidth.
(f) The VNO may provide domestic leased circuit to its users by:
(i) connecting its telecommunication equipment to the
230telecommunication network of its parent NSO; or
(ii) using the telecommunication network of its parent NSO.
(4) Scope of Long Distance Service Authorisation
1. The provisions of this Part D shall apply to authorised entities holding long
distance service authorisation.
2. The scope of long distance service authorisation for NSO comprises the
following:
(a) National Long Distance (NLD) service comprising the following:
(i) carriage of bearer telecommunication traffic within India;
(ii) carriage of intra-circle and inter-circle long distance calls;
(iii) domestic leased circuit; and
(iv) domestic calling card.
(b) International Long Distance (ILD) service comprising the following:
(i) carriage of bearer telecommunication traffic outside India;
(ii) carriage of international long-distance calls to or from foreign
carriers;
(iii) International Private leased Circuit (IPLC); and
(iv) international calling card.
3. The scope of long distance service authorisation for VNO shall comprise the
following:
(a) National Long Distance (NLD) service of following types:
(i) carriage of bearer telecommunication traffic within India;
(ii) carriage of intra-circle and inter-circle long distance calls;
(iii) domestic leased circuit; and
(iv) domestic calling card.
231(b) International Long Distance (ILD) service of the following types:
(i) carriage of bearer telecommunication traffic outside India;
(ii) carriage of international long-distance calls to or from foreign
carriers;
(iii) International Private Leased Circuit (IPLC); and
(iv) international calling card.
4. A NSO may provide:
(a) domestic bandwidth on lease to other authorised entities or licensees
who are permitted to have such connectivity under their respective
authorisation; and
(b) international bandwidth on lease to other authorised entities or licensees
who are permitted to have such connectivity under their respective
authorisation.
5. A NSO may establish, operate, maintain or expand the cable landing station
(CLS) or cable landing station - point of presence (CLS-PoP) after obtaining
requisite security clearance and prior written approval from the Central
Government, for domestic and international submarine cable systems, to
provide telecommunication services.
6. A NSO may establish, operate, maintain or expand the international long
distance (ILD) gateway or international internet gateway (IIG), after obtaining
requisite security clearance and prior written approval from the Central
Government, to provide telecommunication services.
7. An authorised entity may provide the telecommunication services specified
under sub-rule (2), sub-rule (3) and sub-rule (4), as the case may be, through
232wireline or wireless terrestrial networks, satellite networks, or submarine
networks.
8. An authorised entity may access the users directly for provisioning of domestic
leased circuit, domestic calling cards, International Private Leased Circuit
(IPLC), or international calling card.
9. An authorised entity shall only provide telecommunication services authorised
under the scope of its authorisation, and not any other service which may
require a separate authorisation from the Central Government.
VNO authorised to provide Long Distance Service
10. A VNO authorised to provide long distance service shall follow the terms and
conditions of the long distance service authorisation along with the following
specific conditions:
(a) The VNO may enter into mutual agreements as specified in sub-rule (3)
and sub-rule (4) of rule 5, to connect its network to its parent NSO’s
network and provide the details of such agreements, and update any
modifications to such agreements, within seven days, in the manner as
specified on the portal;
(b) The VNO shall not interconnect with telecommunication networks of any
other NSO, other than its parent NSO, and any interconnection with
other authorised telecommunication networks shall be undertaken only
by its parent NSO.
(c) The VNO shall comply with such security conditions as applicable to its
telecommunication network and telecommunication services.
(d) The VNO may provide domestic leased circuit to its users by:
(i) connecting its telecommunication equipment to the
telecommunication network of its parent NSO; or
233(ii) using the telecommunication network of its parent NSO.
B. Scopes of Miscellaneous Services Authorisations
(1) Scope of Public Mobile Radio Trunking Service (PMRTS)
Authorisation
1. The provisions of this Part A shall apply for authorised entities holding public
mobile radio trunking service authorisations.
2. For the purpose of Part A of Chapter 6:
“Public Mobile Radio Trunking Service” or “PMRTS” means a type of
telecommunication service that enables two-way land mobile communication
amongst users, using a pair of radio frequencies, allocated temporarily for the
duration of the call, from a designated spectrum band assigned to the PMRTS
system, through a base station.
3. The scope of public mobile radio trunking service authorisation comprises of
Public Mobile Radio Trunking Service (PMRTS).
4. An authorised entity holding a PMRTS authorisation may provide the
telecommunication service specified under sub-rule (3) through wireless
terrestrial networks.
5. An authorised entity holding a PMRTS authorisation, shall only provide
telecommunication services under the scope of its authorisation, and not any
other telecommunication service(s) which require a separate authorisation
from the Central Government.
234(2) Scope of Enterprise Communication Service Authorisation
1. The provisions of this Part B shall apply to authorised entities holding
enterprise communication service authorisation.
2. For the purpose of Part B of Chapter 6:
(a) “audio conferencing service” means a telecommunication service that
allows multiple users to join a single audio conference and interact at
the same time by providing real-time transmission of voice amongst such
users;
(b) “audiotex service” means a telecommunication service that is either an
interactive or a non-interactive, non-real time, telecommunication
service which provides to users, through standardized procedures,
capability to communicate with an audiotex database via
telecommunication network;
(c) “cloud based EPABX service” means providing EPABX-as-a-Service or
Communications Platform- as-a-Service (CPaaS) to users; and
(d) “voice mail service” means a telecommunication service providing access
of voice mailbox attached to a unique telecommunication identifier to a
user.
3. The scope of enterprise communication service authorisation comprises of the
following telecommunication services provided to users on commercial basis:
(a) audio conferencing service;
(b) audiotex service;
(c) cloud-based EPABX service; and
(d) voice mail service.
2354. An authorised entity holding an enterprise communication service
authorisation, shall only provide telecommunication services authorised under
the scope of its authorisation, and not any other telecommunication services
which may require a separate authorisation from the Central Government.
(3) Scope of Machine to Machine (M2M) Service Authorisation
1. The provisions of this Part C shall apply to authorised entities holding Machine
to Machine (M2M) service authorisation.
2. The scope of Machine to Machine (M2M) service authorisation comprises of
the following:
(a) Machine to Machine (M2M) service;
(b) Establish, operate, maintain or expand Wireless Personal Area Network
(WPAN) or Wireless Local Area Network (WLAN) using spectrum
exempted from the requirement of assignment under sub- section (6) or
sub-section (7) of section 4 of the Act; and
(c) Own and manage a platform for subscription profile management of
M2M e-SIM.
3. An authorised entity holding a M2M service authorisation, shall only provide
telecommunication services authorised under the scope of its authorisation,
and not any other telecommunication service(s) which may require a separate
authorisation from the Central Government.
(4) Scope of PM-WANI Service Authorisation
1. For the purpose of Part D of Chapter 6:
(a) “app provider” means a person that develop an application to register
236user(s) and discover PM-WANI complaint Wi-Fi hotspots in the nearby
area and display the same within the application for accessing the
internet service;
(b) “central registry” means the registry maintained by the Central
Government, or a person approved by the Central Government,
containing information about the PDOs, PDOAs, and App Providers, in
accordance with standards and specifications as specified by the Central
Government;
(c) “public data office” or “PDO” means a person that establish, maintain,
and operate PM-WANI complaint Wi-Fi access points and deliver internet
services to user(s); and
(d) “public data office aggregator” or “PDOA” means a person that acts as
an aggregator of PDOs and perform the functions relating to
authorisation and accounting.
2. The provisions of this Part D shall apply to authorised entities holding PM-
WANI service authorisation.
3. The scope of PM-WANI service authorisation comprises the following:
(a) as Public Data Office Aggregator (PDOA):
(i) aggregate multiple Wi-Fi Access Network Interface (WANI) enabled
Wi-Fi access points operated by individual PDOs registered with the
central registry, with which it has entered into specific agreements
for aggregation, accounting and related functions; and
(ii) authorise users, authenticated by the App Providers, to access the
internet service through individual PDOs.
(b) as App provider, develop an App to:
(i) register and authenticate users; and
(ii) discover WANI compliant Wi-Fi hotspots in the nearby area and
237display the same within the App for accessing the internet service.
4. An authorised entity providing the PM-WANI service may perform the
functions of a PDOA or an App provider, or both.
5. An authorised entity shall only provide telecommunication services authorised
under the scope of its authorisation, and not any other telecommunication
service(s) which may require a separate authorisation from the Central
Government.
(5) Scope of In-Flight and Maritime Connectivity (IFMC) Service
Authorisation
1. The provisions of this Part E shall apply to authorised entities holding IFMC
service authorisation.
2. IFMC service may be provided on ships or aircrafts using wireless media, and
its scope shall comprise of the following:
(a) transmission, emission or reception of voice or non-voice messages,
including video messages; or
(b) internet service.
3. In order to provide IFMC services, an entity holding IFMC service authorisation
shall also be required:
(a) in respect of services specified under clause (a) of sub-rule (2), to hold
an access service authorisation and long distance service authorisation,
or enter into a mutual agreement with another authorised entity
providing access service and long distance service;
(b) in respect of services specified under clause (b) of sub-rule (2), to hold
238an access service authorisation or an internet service authorisation, and
long distance service authorisation, or enter into a mutual agreement
with another authorised entity providing access service or internet
service, and long distance service.
4. An authorised entity may establish base station or Wi-Fi enabled local area
network inside a ship or an aircraft, as the case may be, and connect such
base station or Wi-Fi enabled local area network with the telecommunication
network of such other authorised entity with whom an agreement has been
entered into under sub-rule (3) to provide IFMC service.
5. An authorised entity holding an IFMC service authorisation, shall only provide
telecommunication services under the scope of its authorisation, and not any
other telecommunication service which may require a separate authorisation
from the Central Government.
(6) Scope of Aeronautical Data Communication Service Authorisation
1. The provisions of this Part F shall apply to authorised entities holding
Aeronautical Data Communication service authorisation.
2. For the purpose of Part F of Chapter 6:
(a) “aeronautical data communication service” means the exchange of data
between aircraft and ground station for the purpose of airline operational
communication (AOC) or air traffic management (ATM) using the
spectrum allocated for aeronautical mobile (Route) service in the NFAP;
and
(b) “aeronautical mobile (route) service” means an aeronautical mobile
service reserved for communications relating to safety and regularity of
239flight, primarily along national or international civil air routes.
3. The scope of aeronautical data communication service authorisation shall
comprise of the data communication service between aircraft and ground
stations.
4. An authorised entity may establish one or more ground stations in its service
area to provide aeronautical data communication service, under sub-rule (2),
to airline operators or air navigation service providers.
5. An authorised entity shall only provide telecommunication services authorised
under the scope of its authorisation, and not any other telecommunication
service which may require a separate authorisation from the Central
Government.
(7) Scope of International SIM service authorisation
1. The provisions of this Part G shall apply to authorised entities holding
International SIM service authorisation.
2. The International SIM service authorisation shall be in respect of international
SIM service to an Indian user intending to visit abroad for a specified duration,
the scope of which shall comprise of the following:
(a) selling or renting of SIM of foreign telecommunication service providers;
or
(b) selling of global calling cards.
3. An authorised entity shall only provide telecommunication services authorised
under the scope of its authorisation, and not any other telecommunication
240service which may require a separate authorisation from the Central
Government.
C. Scopes of Captive Services Authorisations
(1) Scope of Captive Mobile Radio Trunking Service (CMRTS)
Authorisation
1. The provisions of this Part A shall apply to authorised entities holding captive
mobile radio trunking service authorisation.
2. For the purpose of Part A of Chapter 6:
(a) “Captive Mobile Radio Trunking Service” or “CMRTS” means a type of
telecommunication service that enables two-way land mobile
communication amongst users, using a pair of radio frequencies,
allocated temporarily for duration of the call, from a designated spectrum
band assigned to the CMRTS system, through a base station.
(b) “land mobile service” means a type of telecommunication service that
enables two-way land mobile communication amongst users, using a pair
of radio frequencies, through a base station.
3. The scope of captive mobile radio trunking service authorisation comprises of:
(a) Captive Mobile Radio Trunking Service (CMRTS), or
(b) land mobile service.
4. An authorised entity holding a CMRTS authorisation shall use the authorisation
for its own captive use within the geo-coordinates of the service area, and not
241for providing public mobile radio trunking service or any other
telecommunication service(s) which require a separate authorisation from the
Central Government.
(2) Scope of Captive Non-Public Network (CNPN) Service Authorisation
1. The provisions of this Part B shall apply to authorised entities holding Captive
Non-Public Network (CNPN) service authorisation.
2. The scope of CNPN service authorisation comprises of the authorisation to
establish, operate, maintain or expand CNPN within the area of operation in
the national service area, limited to geo coordinates of the logical perimeter
of the occupied premise, either owned or leased, by the authorised entity, for
captive non-public use;
Provided that an authorised entity may establish a new CNPN at a different
location, within the national service area, after giving prior intimation to the
Central Government, in the form and manner as may be specified for this
purpose, along with the geo-coordinates of the logical perimeter of such area
of operation.
3. An authorised entity having more than one area of operation shall require only
one CNPN service authorisation.
4. An authorised entity holding a CNPN service authorisation shall not use its
telecommunication network to provide any commercial or public
telecommunication service.
242(3) Scope of Captive VSAT Service Authorisation
1. The provisions of this Part C shall apply to authorised entities holding captive
VSAT service authorisation.
2. The scope of captive VSAT service authorisation comprises of the following:
(a) establish, operate, maintain or expand satellite telecommunication
network for captive use of telecommunication services using VSAT,
including ESIM;
(b) establish data connectivity, using the telecommunication network
established under clause (a), amongst its own offices or sites.
3. An authorised entity holding a captive VSAT service authorisation shall not use
its telecommunication network to provide any commercial or public
telecommunication service.
(4) Scope of Captive General Service Authorisation
1. The provisions of this Part D shall apply to authorised entities holding captive
general service authorisation.
2. The scope of captive general service authorisation comprises establishing,
operating, maintaining, or expanding captive telecommunication network
including wireline and wireless telecommunication networks for captive use.
3. The scope of this authorisation shall not include such captive
telecommunication services for which a separate authorisation is granted
under these rules.
243D. Networks Authorisations
(1) Scope of Infrastructure Provider (IP) authorisation
1. The provisions of this Part A shall apply to authorised entities holding
Infrastructure Provider (IP) authorisations.
2. An authorised entity having Infrastructure Provider (IP) authorisation may
establish, operate, maintain or expand dark fibres, right of way (RoW), duct
space, towers, poles and in-building solution (IBS) infrastructure.
3. An authorised entity holding an Infrastructure Provider (IP) authorisation,
shall only establish the telecommunication network as authorised under the
scope of its authorisation, and it shall not establish any other category of
telecommunication network which may require a separate authorisation from
the Central Government.
(2) Scope of Digital Connectivity Infrastructure Provider (DCIP)
authorisation
1. The provisions of this Part B shall apply to authorised entities holding Digital
Connectivity Infrastructure Provider (DCIP) authorisation.
2. For the purpose of Part B of Chapter 6:
(a) “transmission link” means the transmission network required for
interconnecting the systems of wireline access network, radio access
network (RAN), Wireless Local Area Network (WLAN), or In- Building
Solutions (IBS) with the core telecommunication network of the
authorised entity to whom it is providing the wireline access network,
244radio access network (RAN), Wireless Local Area Network (WLAN), or In-
Building Solutions (IBS); and
(b) “Wireless Local Area Network” means a wireless telecommunication
network whereby a user can connect to a local area network (LAN)
through a wireless (radio) connection, as an alternative to a wired local
area network.
3. The scope of DCIP authorisation comprises of the following:
(a) establish, operate, maintain, or expand telecommunication equipment
and systems required for establishing wireline access network, radio
access network (RAN), Wireless Local Area Network (WLAN),
transmission link, or In-Building Solutions (IBS); and
(b) establish, operate, maintain, or expand dark fibers, right of way (RoW),
duct space, towers, poles or in- building solution (IBS) infrastructure.
4. An authorised entity holding a DCIP authorisation, shall only establish the
telecommunication network as authorised under the scope of its authorisation,
and it shall not establish any other category of telecommunication network
which may require a separate authorisation from the Central Government.
(3) Scope of Internet Exchange Point (IXP) provider authorisation
1. The provisions of this Part C shall apply to authorised entities holding Internet
Exchange Point (IXP) provider authorisation.
2. The scope of IXP provider authorisation comprises of the following:
(a) establish, operate, maintain, or expand Internet Exchange Points (IXPs)
in India;
(b) peering and exchange of internet traffic, originated and destined within
245India, amongst the entities authorised to provide internet service under
sub-section (1) of section 3 of the Act or licensees providing internet
service under the Indian Telegraph Act 1885, and Content Delivery
Networks (CDNs) located in India; and
(c) interconnect its IXP with the IXPs established, operated or maintained
by other authorised entities or licensees under the Indian Telegraph Act,
1885.
3. An authorised entity holding an IXP provider authorisation, shall only establish
the telecommunication network as authorised under the scope of its
authorisation, and it shall not establish any other category of
telecommunication network which may require a separate authorisation from
the Central Government.
(4) Scope of Satellite Earth Station Gateway (SESG) provider
authorisation
1. The provisions of this Part D shall apply to authorised entities holding Satellite
Earth Station Gateway (SESG) provider authorisation.
2. The scope of SESG provider authorisation comprises of establishing,
operating, maintaining, or expanding SESG for such satellite systems which
are authorised by the Department of Space or IN-SPACe, or any other office
so authorised by the Central Government for this purpose.
3. An authorised entity holding SESG provider authorisation may establish,
operate, maintain, or expand the baseband systems, along with SESG, for
such satellite systems as specified in sub-rule (2).
2464. An authorised entity holding a Satellite Earth Station Gateway (SESG) provider
authorisation, shall only establish the telecommunication network as
authorised under the scope of its authorisation, and it shall not establish any
other category of telecommunication network which may require a separate
authorisation from the Central Government.
(5) Scope of Cloud-hosted Telecommunication Network (CTN) provider
authorisation
1. The provisions of this Part E shall apply to authorised entities holding Cloud-
hosted Telecommunication Network (CTN) provider authorisation.
2. For the purpose of Part E of Chapter 6, the following terms shall have the
meaning as set out below:
(a) “cloud-hosted telecommunication network” or “CTN” means
telecommunication network comprising of virtual network components,
topologies, and configurations that run on the CTN provider’s physical
networking infrastructure;
(b) “CTN provider” means a person holding an authorisation to provide CTN;
(c) ‘CTNaaS’ shall cover the following:
(i) provision of physical infrastructure to any other entity authorised
under sub-section (1) of section 3 of the Act for housing its
telecommunication equipment;
(ii) provision of dedicated telecommunication equipment to any other
entity authorised under sub- section (1) of section 3 of the Act for
use in its telecommunication network;
(iii) provision of virtual machine(s) to any other entity authorised under
sub-section (1) of section 3 of the Act for use in its
247telecommunication network; or
(iv) provision of telecommunication network functionality to any entity
authorised under sub- section (1) of section 3 of the Act for
providing telecommunication services.
3. The scope of CTN provider authorisation comprises of following:
(a) establishing, operating, maintaining, or expanding CTN,
(b) provide CTN as a Service (CTNaaS) to the entities authorised to use such
telecommunication network for provisioning of telecommunication
services or establishing telecommunication network.
4. A CTN provider shall only establish the telecommunication network as
authorised under the scope of its authorisation, and it shall not establish any
other category of telecommunication network or provide any category of
telecommunication service which may require a separate authorisation from
the Central Government.
(6) Scope of Mobile Number Portability (MNP) provider authorisation
1. The provisions of this Part F shall apply to authorised entities holding Mobile
Number Portability (MNP) provider authorisation.
2. The scope of MNP provider authorisation comprises of the authorisation to
establish, operate, maintain, or expand a telecommunication network for
providing MNP as a Service in its zonal area to the entities authorised to
provide access service under clause (a) of sub-section (1) of section 3 of the
Act.
2483. An authorised entity holding a Mobile Number Portability (MNP) provider
authorisation, shall only establish the telecommunication network as
authorised under the scope of its authorisation, and it shall not establish any
other category of telecommunication network which may require a separate
authorisation from the Central Government.
249Annexure 2.2: DoT’s OM dated 05.05.2025
250251252253254Annexure 3.1: Definitions of GR/ ApGR/ AGR
[As per “Draft Telecommunication (Authorisation for Provision of Main
Telecommunication Services) Rules, 2025” dated 05.09.2025, as per
Recommendations dated 18.09.2024 for Satellite-based Telecommunication Service
authorisation and provisions of extant GMPCS & Commercial VSAT CUG
Authorisations]
A. GR/ ApGR/ AGR for Global Mobile Personal Communication by
Satellite (GMPCS) Service authorisation under UL
Gross Revenue:
The Gross Revenue shall be inclusive of installation charges, late fees, sale proceeds
of handsets (or any other terminal equipment etc.), revenue on account of interest,
dividend, value added services, supplementary services, access or interconnection
charges, roaming charges, revenue from permissible sharing of infrastructure and any
other miscellaneous revenue, without any set-off for related item of expense, etc.
Applicable Gross Revenue (ApGR):
ApGR shall be equal to Gross Revenue (GR) of the licensee as reduced by the items
listed below:
(i) Revenue from operations other than telecom activities/ operations.
(ii) Revenue from activities under a license/ permission issued by Ministry of
Information and Broadcasting.
(iii) Receipts from the USO Fund.
(iv) List of other income to be excluded from GR to arrive at ApGR
a. Income from Dividend
255b. Income from Interest
c. Capital Gains on account of profit of Sale of fixed assets and securities
d. Gains from Foreign Exchange rates fluctuations
e. Income from property rent
f. Insurance claims
g. Bad Debts recovered
h. Excess Provisions written back
Adjusted Gross Revenue (AGR):
For the purpose of arriving at the Adjusted Gross Revenue (AGR), following shall be
excluded from the Applicable Gross Revenue (ApGR):
a. PSTN/PLMN/GMPCS related call charges (Access Charges) paid to other
eligible/ entitled telecommunication service providers within India;
b. Roaming revenues passed on to other telecom service providers, and;
c. Goods and Service Tax (GST) paid to the Government, if the Applicable Gross
Revenue (ApGR) had included as component of GST
B. GR/ApGR/AGR for Commercial VSAT CUG Service authorisation
under UL
Gross Revenue:
The Gross Revenue shall include all revenues accruing to the Licensee on account of
goods supplied, services provided, leasing/hiring of infrastructure, use of its resources
by others, application fees, installation charges, call charges, late fees, sale proceeds
of instruments (or any terminal equipment including accessories), VSAT
hardware/software, fees on account of Annual Maintenance Contract/ Annual
Comprehensive Maintenance Contract, income from value added services,
256supplementary services, access or interconnection charges, etc., and any other
miscellaneous item including interest, dividend etc. without any set-off of related item
of expense, etc.
Applicable Gross Revenue (ApGR):
[Same as GMPCS service authorisation]
Adjusted Gross Revenue (AGR):
For the purpose of arriving at the Adjusted Gross Revenue (AGR), following shall be
excluded from the Applicable Gross Revenue (ApGR):
a. Charges of pass through nature paid to other Telecom service provider(s) to
whose network, the Licensee’s network is interconnected for carriage of data,
and;
b. Goods and Service Tax (GST) paid to the Government, if the Applicable Gross
Revenue (ApGR) had included as component of GST
C. GR/ApGR/AGR for proposed Satellite-based Telecommunication
Service authorisation-NSO as per Recommendations dated
18.09.2024 under Chapter XI of Annexure-2.3 of the said
Recommendations:
“ (1) Gross Revenue: The Gross Revenue shall include all revenues accruing to
the Authorised Entity on account of goods supplied, services provided,
leasing/hiring of infrastructure, revenue from permissible sharing of
infrastructure, use of its resources by others, installation charges, application
fee, call charges, late fees, sale proceeds of instruments (or any terminal
equipment including accessories), hardware/software for satellite-based
telecommunication, fees on account of Annual Maintenance Contract, income
from value added services, access or interconnection charges and any other
257miscellaneous item including interest, dividend, supplementary services etc.
without any set-off of related item of expense.
(2) Applicable Gross Revenue: ApGR shall be equal to Gross Revenue (GR) of
the Authorised Entity as reduced by the items listed below: (a) Revenue from
operations other than telecom activities/ operations. (b) Revenue from activities
under a license/ permission issued by Ministry of Information and Broadcasting.
(c) Receipts from the Digital Bharat Nidhi. (d) List of other income* to be
excluded from GR to arrive at ApGR (i) Income from Dividend (ii) Income from
Interest (iii) Capital Gains on account of profit of Sale of fixed assets and
securities (iv) Gains from Foreign Exchange rates fluctuations (v) Income from
property rent (vi) Insurance claims (vii) Bad Debts recovered (viii) Excess
Provisions written back *Subject to conditions given in Annexure-1.3.4
(3) Adjusted Gross Revenue: For the purpose of arriving at the “Adjusted Gross
Revenue (AGR)”, following shall be excluded from the Applicable Gross Revenue
(ApGR):
(a) PSTN/PLMN/ GMPCS related call charges (Access Charges) paid to other
eligible/entitled telecommunication service providers within India;
(b) Charges of pass through nature paid to other Telecom service provider(s)
to whose network, the Authorised Entity’s network is interconnected for
carriage of data, and;
(c) Roaming revenues passed on to other telecom service provider
Back Reference dated 14.01.2025 received from DoT on the
Recommendations dated 18.09.2024 & Response of TRAI to the same
is reproduced below:
“Recommendation on 4.51
4.50 The Authority recommends the following:
(a) The extant definitions of Gross Revenue (GR), Applicable Gross Revenue
258(ApGR) and Adjusted Gross Revenue (AGR) for the existing Service
Authorisations should continue.
(b) In case of merged/ clubbed / new Service Authorisations, the definitions
should be aligned accordingly.
(c) The applicable definitions for GR, AGR and ApGR have been given under
the respective Service Authorisations.
(d) The clarification dated 17.07.2023 issued by DoT regarding the
definitions of GR and AGR should be considered alongwith the applicable
definitions for GR, AGR and ApGR as have been given under the
respective Service Authorisations.
(e) Any further orders/instructions/clarifications on the definitions of Gross
Revenue, Applicable Gross Revenue and Adjusted Gross Revenue may
be issued by DoT after obtaining recommendations from TRAI.
[Para 3.152]
DoT’s Views on Recommendation on 4.51
(a-d) May not be accepted. May have uniform definition of GR, ApGR and AGR,
which would be common to all authorisations. (attached as Annexure-C)
(e) May not be accepted
Response of TRAI w.r.t. the DoT’s Views on the Recommendation on
4.51
DoT in its back reference to TRAI dated January 14, 2025, has inter alia stated
that:
“Like the extant licensing framework, TRAI has recommended separate
definitions for each authorisation of Gross Revenue (GR), Applicable Gross
Revenue (ApGR) and Adjusted Gross Revenue (AGR). These definitions are
similar in principle across all authorisations with minor differences in drafting.
The Government is of the view that the definitions of Gross Revenue (GR),
259Applicable Gross Revenue (APGR) and Adjusted Gross Revenue (AGR) may be
redrafted in a manner to make them uniform and common to all such
authorisations where Authorisation Fee is calculated as a share of AGR. This
would simplify and bring more transparency in the authorisation framework
and eliminate possibility of arbitrage, if any. The extant levies ie. License Fee
and Spectrum Usage Charges (SUC) would continue to be charged at existing
rates. The draft common definitions of GR, APGR and AGR are available at
Annexure-C.”
The Authority notes that DoT while proposing common definition/ format for
GR/AGR has not provided any detailed justification or analysis citing the
necessity of this uniform definitions/ formats.
Further, in this regard, it is pertinent to highlight that the current GR/AGR
definitions and formats have been consistently followed by service providers in
preparation of the Statement of Revenue.
TRAI in its Recommendations dated 18.9.2024 marked a significant shift from
a licensing regime to an authorisation-specific framework. Consequently, to
enhance clarity in the reporting of revenue by service providers, the Authority
recommended distinct and comprehensive definitions tailored for each service
authorisation rather than a uniform definition applicable to all authorisations.
This approach aligns with the specific revenue items required to be disclosed
in the Statement of Revenue, ensuring greater transparency and adherence to
prevailing market practices.
Furthermore, in the 'Consultation Paper on the Framework of Service
Authorizations to be granted under the Telecommunication Act, 2023,' issued
on July 11, 2024, issues concerning the definitions and formats of the
260Statement of Revenue were raised separately for each service authorisation.
The issue related to uniform definitions/ formats were neither raised by DoT’s
reference in this regard nor this was part of the consultation. Moreover, no
specific suggestions were received from stakeholders regarding uniformity in
GR/AGR definitions and formats.
Further, the formats proposed by DoT in its back reference are primarily
bifurcated into wireless or wireline segments i.e. medium used for provision of
service rather than service specific/ authorisation specific formats.
The Authority is of the view that the existing service-specific definitions/
formats for GR/AGR are a well-established practice and are being followed by
the industry for more than a decade. Any alteration at this stage could lead to
ambiguity into the process. Further, the Authority further is of the opinion that
retaining the service-specific definitions will ensure clarity, consistency, and the
avoidance of ambiguity.
In light of the above, the Authority reiterates its earlier
recommendations w.r.t. definitions of GR, ApGR, and AGR.”
D. “Draft Telecommunication (Authorisation for Provision of Main
Telecommunication Services) Rules, 2025” dated 05.09.2025
“Gross Revenue” of an authorised entity shall include revenues accrued to an
authorised entity by way of all operations and activities and all income from any
source including on account of interest, dividend, rent, profit on sale of fixed
assets and miscellaneous income, without any set-off for related items of
expenses.
261“Applicable Gross Revenue” or “ApGR” for the purposes of calculating Adjusted
Gross Revenue (AGR), shall be equal to Gross Revenue of an authorised entity
as reduced by the items listed below:
(i) revenue from operations other than telecom activities or operations;
(ii) revenue from activities under an authorisation, permission or registration
issued by Ministry of Information and Broadcasting;
(iii) receipts from the Digital Bharat Nidhi; and
(iv) revenue falling under the following items:
(a) income from dividend;
(b) income from interest;
(c) capital gains on account of profit on sale of fixed assets and securities;
(d) gains from foreign exchange rates fluctuations;
(e) income from property rent;
(f) insurance claims;
(g) bad debts recovered; and
(h) excess provisions written back: Provided that the Central Government
shall from time to time specify the description and conditions applicable
to these revenue sources and the manner of their computation.
“Adjusted Gross Revenue” or “AGR”:
(i) In respect of a NSO, AGR shall be calculated by excluding the following
from the ApGR:
(a) interconnection usage charges (IUC), related to calls and SMS, paid to
other authorised entities or licensees; and
(b) roaming revenues paid to other authorised entities or licensees within
India and telecommunication service providers outside India; and
(ii) In respect of a VNO, AGR shall be calculated by excluding from the ApGR,
charges paid by the VNO to one or more NSOs under an agreement for
provision of telecommunication network, including bandwidth, leased
262circuits, call minutes and SMSs, as may be necessary for a VNO to provide
telecommunication services to its users, subject to submission to the Central
Government the copy of the agreement, specifying such charges, along with
proof(s) of actual payment of such amounts.”
263LIST OF ACRONYMS
3GPP 3rd Generation Partnership Project
ACMA Australian Communications and Media Authority
AGR Adjusted Gross Revenue
ApGR Applicable Gross Revenue
ASP Access Service Provider
BG Bank Guarantee
BSNL Bharat Sanchar Nigam Limited
BSO Basic Service Operator
BTS Base Transceiver Station
CMRTS Captive Mobile Radio Trunking Service
CMSP Cellular Mobile Service Provider
CNPN Captive Non-Public Network
CTFA Canadian Table of Frequency Allocation
CTN Cloud-hosted Telecommunication Network
CUG Closed User Group
D2D Direct-to-Device
D2M Direct-to-Mobile
DCIP Digital Connectivity Infrastructure Provider
DoS Department of Space
DoT Department of Telecommunications
DTH Direct-To-Home
264EIR Equipment Identity Register
FCC Federal Communications Commission
FBG Financial Bank Guarantee
FDD Frequency Division Duplexing
FSP Fixed Service Provider
FSS Fixed Satellite Service
GIA Geographically Independent Area
GMPCS Global Mobile Personal Communication by Satellite
GR Gross Revenue
GSPS Global Satellite Phone Service
GSO Geostationary Orbit
GST Goods and Services Tax
IF Intermediate Frequency
IFC In-Flight Connectivity
IFMC In-Flight and Maritime Connectivity
ILD International Long Distance
ILDO International Long Distance Operator
IMT International Mobile Telecommunications
INCOSPAR Indian National Committee for Space Research
INSAT Indian National Satellite
IN-SPACe Indian National Space Promotion and Authorisation Centre
IoT Internet of Things
IP Infrastructure Provider
265ISED Innovation, Science and Economic Development
ISRO Indian Space Research Organisation
ITU International Telecommunication Union
ITU-RR ITU Radio Regulations
IUC Interconnection Usage Charges
IXP Internet Exchange Point
LEO Low Earth Orbit
LSA Licensed Service Area
M2M Machine to Machine
MBIE Ministry of Business, Innovation and Employment
MCA Mobile Communication on Aircraft
MEO Medium Earth Orbit
MNO Mobile Network Operator
MNP Mobile Number Portability
MSS Mobile Satellite Service
NDCP National Digital Communication Policy
NFAP National Frequency Allocation Plan
NGE Non-Government Entity
NGSO Non-Geostationary Orbit
NLD National Long Distance
NLDO National Long Distance Operator
NOCC Network Operations Control Center
NSO Network Service Operator
266NTN Non-Terrestrial Network
NTP National Telecom Policy
OM Office Memorandum
PBG Performance Bank Guarantee
PLMN Public Land Mobile Network
PMRTS Public Mobile Radio Trunking Service
PSTN Public Switched Telephone Network
RF Radio Frequency
RIO Reference Interconnect Offer
SCN Satellite Communication Network
SCNaaS Satellite Communication Network as a Service
SCS Supplemental Coverage from Space
SDL Supplementary Downlink
SESG Satellite Earth Station Gateway
SMCS Supplemental Mobile Coverage by Satellite
SMP Significant Market Power
TDD Time Division Duplexing
TRAI Telecom Regulatory Authority of India
TSTP Test Schedule Test Procedure
UAL Universal Access Levy
UL Unified License
UK United Kingdom
USA United States of America
267USO Universal Service Obligation
USOF Universal Service Obligation Fund
VNO Virtual Network Operator
VSAT Very Small Aperture Terminal
WAN Wide Area Network
WPC Wireless Planning & Coordination Wing
WPF Wireless Planning & Finance Wing
WRC World Radiocommunication Conference
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