TRAI plans to limit satellite permits to five years, challenging Musk's Starlink

The Telecom Regulatory authorization of India (TRAI) plans to recommend that satellite broadband spectrum be allotted for five years to assess initial market adoption, a Reuters report said. This defies tech billionaire Elon Musk's Starlink which is seeking a 20-year permit, the report quoted a senior government source.

The TRAI is currently working on key recommendations to the federal government, including a time frame and pricing of satellite spectrum, which will be administratively allotted, the report added.

Musk signs deals with Ambani, Airtel

Billionaire Mukesh Ambani-controlled Jio Platforms Ltd. Announced a surprise pact with SpaceX to offer Starlink Inc.’s satellite Internet services in India on Wednesday, a day after rival Bharti Airtel Ltd. Unveiled a similar arrangement.

This partnership will allow Starlink devices to be sold in Ambani's Reliance stores, giving it large distribution access. They were rivals earlier – Ambani's telco subsidiary had unsuccessfully lobbied New Delhi for months to auction spectrum, and not allot it administratively as Musk wanted.

Starlink has pushed New Delhi to allot spectrum for 20 years to focus on "affordable pricing and longer-term business plans", while Reliance sought it for three years, after which it wants India to reassess the market, according to their public submissions. Bharti Airtel has also pushed for a 3-5 year period for the licence.

The twin deals essentially turn Elon Musk’s Internet service from challenger to ally of India’s powerful wireless carriers, underscoring his growing global influence as US President Donald Trump’s close adviser. It also marks a volte-face by Ambani’s Jio and Bharti — controlled by tycoon Sunil Mittal — which were earlier opposed to the idea of Starlink getting airwaves cheaply.

TRAI's plans

TRAI plans to agree to demands for a lower licence time-frame "of around five years and then see how the sector grows," said the senior government source, who declined to be named as the decision-making process is confidential.

"This will help understand how the market stabilises, so there's no point going beyond five years," said the official.

An industry source familiar with licensing processes told Reuters the shorter time-frame will allow New Delhi to revise spectrum prices after five years as the market develops.

The government source added it will take about a month for the TRAI to finalise its recommendations on the licence time- frame and a per megahertz spectrum pricing, which will then be submitted to India's telecoms ministry for further action.

KPMG estimates India’s satellite communication sector will grow more than 10 times in size to touch $25 billion by 2028.

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