The Department of Telecom has prepared a Cabinet note on spectrum usage charges for satellite communication (Satcom) services, which is expected to be placed before the Cabinet for consideration and approval in the coming days, according to government sources.
“The Cabinet may soon approve the spectrum norms for the Satcom services...the decision has been already taken for 5 per cent AGR with 1 per cent discount for some rural areas, which the government would decide. The draft is ready and it can come any time in the coming days,” a senior government official told businessline.
Last month, the Digital Communications Commission (DCC) approved a spectrum usage charge (SUC) of 5 per cent of adjusted gross revenue (AGR) for Satcom service providers, with a reduction of one percentage point, taking the charge to 4 per cent for services delivered in government-notified hard-to-connect and remote border areas. The proposal now awaits the next stage of government consideration.
Even after a decision on the spectrum usage charge and administrative allocation of spectrum, companies will have to obtain the requisite security clearances, including from the Ministry of Home Affairs, before commencing operations, in accordance with the applicable conditions.
Meanwhile, government sources said domestic companies would be encouraged to participate in the sector rather than India depending only on foreign players, citing concerns over security, accountability and the sourcing of equipment.
This is significant in the context of recent outburst by Elon Musk who has accused certain “oligarchs” of trying to block Starlink’s Satcom services in India to “maintain their monopolistic chokehold on the Indian people”. In posts on X, he questioned whether “Ambani is the real boss of India”.
Dear Prime Minister Ambani, Please accept my humble apologies for not realizing that you are the real boss of India. Naturally, you would prefer to maintain your monopolistic exploitation of the great people of India, but would you nonetheless consider allowing Starlink to compete? There are many areas of India, as there are in all countries, with no Internet access, which denies children the opportunity for education and for small businesses the opportunity to sell their goods to a global market. Starlink would change their lives for the better. Thank you 🙏
— Elon Musk (@elonmusk) October 9, 2026“I think liabilities can be taken care of if more domestic players are involved in the sector, Satcom is an all-new sector and we need to understand who is doing what, and equipment are procured within the country. Who would take the responsibilities of anything going wrong up in the orbits? We have to rely on someone who can be trusted,” said another government official.
However, officials said India could also consider other foreign operators, including Amazon Leo, formerly known as Project Kuiper, which is in the process of seeking approval for Satcom testing in the country. Such companies would have to comply with Indian security requirements.
Amazon Leo is a low-earth-orbit (LEO) satellite broadband network designed to provide high-speed, low-latency internet connectivity, including in underserved areas.
“Any company that is ready to work with conditions laid out by the government are welcome. National security is our primary requirement and also a priority, and anybody who wants to operate in our country, has to follow the law of the land. We have data centres that store data within our country, apps/ social media platforms that abide by set conditions. So, in similar way, same has to be done for the Satcom,” the official said.
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Published on October 11, 2026
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