India’s Satellite Internet Race Hits a Spectrum Roadblock: Starlink vs Jio vs Airtel

India’s Satellite Internet Race Hits a Spectrum Roadblock: Starlink vs Jio vs Airtel

Introduction: The Skyward Ambition

India, a country of over 1.4 billion people, is standing at the cusp of a digital revolution powered by space. Satellite internet, long seen as a futuristic solution for remote connectivity, is finally becoming a commercial reality. Global tech giants like Elon Musk's Starlink, Jeff Bezos' Amazon Kuiper, along with homegrown players like Bharti Airtel-backed OneWeb and Reliance Jio's satellite venture, are competing to deliver high-speed internet from space to every corner of India.

However, despite the enthusiasm, a critical bottleneck threatens to delay or derail these ambitious projects—the battle over spectrum allocation, pricing, and regulation. While the technology is ready, India's policy on satellite spectrum has triggered disputes between satellite operators and established telecom giants, exposing deep fractures in the country's digital strategy.

The Promise of Satellite Internet

Satellite broadband is seen as a game-changer, especially for rural, remote, and underserved regions where fiber-optic cables or mobile towers struggle to reach. Using constellations of low-earth orbit (LEO) satellites, companies can beam internet directly to users via small dish antennas, offering speeds comparable to traditional broadband.

India, with its vast rural hinterlands and challenging terrains like mountains and islands, presents a massive market for satellite internet. According to industry estimates, the Indian satellite communication sector could exceed $1.9 billion by 2030, with millions gaining access to online education, e-commerce, telemedicine, and e-governance.

Recognizing this potential, players like:

·         Starlink (part of SpaceX)

·         OneWeb (Bharti Enterprises and UK Government-backed)

·         Reliance Jio-SES partnership

·         Amazon’s Project Kuiper

…are eyeing India's satellite broadband segment. Starlink, for instance, already has over 5,000 satellites in orbit globally and recently secured a key telecom license in India to roll out services.

Yet, behind the scenes, a regulatory clash is brewing.

Understanding the Spectrum Stalemate

At the heart of the issue is how satellite spectrum should be allocated and priced. Spectrum, essentially radio frequencies, is the invisible resource that powers wireless communication—from mobile phones to Wi-Fi to satellite links.

In India, terrestrial spectrum for mobile networks (like 4G or 5G) is auctioned for high fees, generating billions in government revenue. Telecom operators like Reliance Jio and Airtel have spent significant sums acquiring these airwaves.

For satellite communication, global norms typically prefer administrative allocation—where spectrum is assigned directly, often at minimal or fixed charges, to encourage deployment in underserved areas.

India's Telecom Regulatory Authority (TRAI) has recommended aligning with global best practices, suggesting:

·         Satellite spectrum be allocated administratively, not auctioned

·         Operators pay 4% of their Adjusted Gross Revenue (AGR) as a recurring fee

·         A 5-year licensing term for satellite broadband services

While this approach favors rapid rollout and affordability, terrestrial telecom players argue it's unfair.

The Telecom Industry’s Objections

Leading mobile operators, particularly Reliance Jio and Bharti Airtel, have raised strong objections to TRAI’s recommendations. Their arguments include:

1. Uneven Playing Field

Mobile operators spent over ₹1.5 lakh crore (approx $20 billion) on spectrum auctions for 4G and 5G. They believe allowing satellite companies to access spectrum via administrative routes undermines market parity.

2. Overlapping Consumer Base

Both satellite and mobile broadband target the same end-users, especially as satellite terminals become portable. Offering different pricing models creates distortion, they argue.

3. Revenue Loss for Government

Auctioning spectrum generates significant revenue. Waiving auctions for satellite bands could impact national finances.

Thus, Jio, Airtel, and industry groups demand:

·         Satellite spectrum be auctioned, like mobile spectrum

·         Longer licensing periods to ensure investment viability

·         Transparent, competitive processes to avoid favoritism

This tussle has led to policy uncertainty, with the government caught between encouraging space-based internet and safeguarding existing telecom investments.

Global Perspective: Auctions vs Administrative Allocation

Globally, most countries allocate satellite spectrum administratively to fast-track deployment. Auctions are rare for satellite communication, given the technical complexities:

·         Satellite services often cover large geographic areas crossing national borders

·         Auctions can delay satellite launches or create fragmented access

·         High upfront costs discourage new entrants or innovation

Countries like the US, UK, and European Union assign satellite spectrum via licensing, combined with usage fees or revenue sharing.

India’s hesitation stems from balancing rural connectivity goals with protecting its massive telecom sector, which has already invested heavily in spectrum and infrastructure.

Starlink's India Entry and the Ripple Effect

Amid this backdrop, Starlink has emerged as a key player. After regulatory hurdles in 2022, SpaceX secured its Global Mobile Personal Communication by Satellite (GMPCS) license in India in June 2025. This permits Starlink to offer satellite broadband, pending spectrum clearance and security approvals.

Starlink’s entry is significant because:

·         It boosts competition in satellite internet, reducing costs for consumers

·         Rural and remote communities may get connected faster

·         However, it intensifies the spectrum policy debate

Reliance Jio and Airtel view Starlink's administrative spectrum access as a potential threat, as it bypasses the expensive auction route they endured.

The government now faces mounting pressure to define clear, consistent rules for all players—whether operating from space or ground.

Challenges Beyond Spectrum

While spectrum remains the immediate hurdle, satellite internet in India faces other challenges:

1. High Cost of Terminals

Starlink kits currently cost over ₹50,000 in other markets—a significant barrier for rural households.

2. Import and Security Clearances

Satellite ground stations, terminals, and gateways need approvals from multiple ministries, including defense and home affairs.

3. Affordability for Mass Adoption

To bridge the digital divide, satellite broadband needs affordable pricing models, which depend on low regulatory fees and scaled operations.

4. Integration with 5G and Fiber

Satellite services work best as part of a hybrid ecosystem alongside terrestrial networks, not in isolation.

Thus, spectrum clarity is only the first piece of a larger connectivity puzzle.

The Road Ahead: Finding Middle Ground

For India to harness the full potential of satellite internet:

·         Regulatory certainty is essential—clear rules on spectrum, licensing, fees, and security

·         A balanced approach that protects telecom investments while promoting satellite innovation

·         Global coordination, as satellite constellations operate beyond national boundaries

·         Industry collaboration to ensure interoperability and affordable services

The government has indicated it's reviewing TRAI’s proposals and industry feedback. The final policy could set a precedent for India’s space economy, which is projected to exceed $100 billion by 2040, driven by satellite services, launches, and manufacturing.

Conclusion: The Spectrum Conundrum Defines the Future

India’s digital ambitions are soaring—both figuratively and literally. Satellite internet promises to connect the unconnected, fuel economic growth, and cement India’s leadership in the space sector.

Yet, unresolved spectrum disputes risk delaying these benefits. Striking the right regulatory balance—encouraging competition without undermining existing players—will be pivotal.

As space becomes the next frontier for connectivity, India’s policy choices today will determine whether millions get online seamlessly or whether regulatory bottlenecks ground the satellite dream.