Starlink India launch gains momentum as TRAI proposes new spectrum rules

SpaceX’s Starlink launch in India is advancing as the Telecom Regulatory Authority of India (TRAI) recommends a five-year satellite spectrum allocation for commercial communication services. The move marks a pivotal step for Elon Musk’s plan to bring high-speed internet to the region.

TRAI’s proposal includes an option to extend the initial five-year spectrum allocation by two years, contingent on market dynamics. The telecom regulator also outlined a pricing structure, charging operators 4% of their adjusted gross revenue for geostationary orbit-based fixed and mobile satellite services. TRAI also set a minimum annual spectrum charge of 3,500 rupees ($41) per megahertz.

TRAI proposed an additional charge of 500 rupees (About $6.00) per subscriber annually in urban areas for non-geostationary orbit-based fixed satellite services. It exempted rural and remote regions from the same charge to boost accessibility. The recommendations align with Starlink’s push to launch services in India, following the Indian government’s conditional approval last week.

Elon Musk has advocated for longer spectrum allocation terms, urging New Delhi to allot spectrum for 20 years to focus on “affordable pricing and longer-term business plans,” as Starlink’s public submissions stated. However, TRAI opted for a shorter initial timeframe to monitor the sector’s growth, a decision influenced by earlier discussions reported Reuters.

Starlink’s market entry is bolstered by strategic partnerships. In March, Musk and Indian billionaire Mukesh Ambani signed a deal allowing Starlink devices to be sold in Ambani’s Reliance stores, leveraging a vast distribution network. The partnership followed a rivalry between the two billionaires.

Ambani’s telco subsidiary had lobbied for spectrum auctions to level the playing field in India’s broadband service market, a proposal Musk criticized for diverging from global practices. Meanwhile, Bharti Airtel, India’s No. 2 telco, secured a distribution deal with Starlink and supported a three-to-five-year license period. Bharti Airtel announced a partnership with Starlink before it received conditional approval from the Indian government.

As Starlink navigates India’s regulatory landscape, TRAI’s recommendations signal a balanced approach to fostering satellite broadband growth. With partnerships and regulatory hurdles clearing, Musk’s vision for affordable, high-speed internet could transform connectivity in India’s urban and rural areas, positioning Starlink as a key player in the country’s telecom evolution.

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