India has introduced new draft regulations for its burgeoning satellite communications sector, formalizing the assignment of spectrum through an administrative process with fixed annual fees rather than auctions, but introducing a critical mandatory security clearance requirement before any satellite internet or phone services can be offered to consumers. Companies like Starlink, Eutelsat OneWeb, and Jio Satcom, while able to obtain spectrum and even a Letter of Intent, will face delays in launching consumer-facing operations until government security clearances are fully secured, and will also be prohibited from connecting their networks to public telecommunication systems without explicit government permission. Furthermore, the new rules necessitate that state-owned carriers BSNL and MTNL reapply for spectrum at market-linked prices, moving away from routine renewals, thereby imposing a significant fiscal discipline test on these entities.

India has introduced new draft regulations for its burgeoning satellite communications sector, formalizing the assignment of spectrum through an administrative process with fixed annual fees rather than auctions, but introducing a critical mandatory security clearance requirement before any satellite internet or phone services can be offered to consumers. Companies like Starlink, Eutelsat OneWeb, and Jio Satcom, while able to obtain spectrum and even a Letter of Intent, will face delays in launching consumer-facing operations until government security clearances are fully secured, and will also be prohibited from connecting their networks to public telecommunication systems without explicit government permission. Furthermore, the new rules necessitate that state-owned carriers BSNL and MTNL reapply for spectrum at market-linked prices, moving away from routine renewals, thereby imposing a significant fiscal discipline test on these entities.

India has introduced new draft regulations for its burgeoning satellite communications sector, formalizing the assignment of spectrum through an administrative process with fixed annual fees rather than auctions, but introducing a critical mandatory security clearance requirement before any satellite internet or phone services can be offered to consumers. Companies like Starlink, Eutelsat OneWeb, and Jio Satcom, while able to obtain spectrum and even a Letter of Intent, will face delays in launching consumer-facing operations until government security clearances are fully secured, and will also be prohibited from connecting their networks to public telecommunication systems without explicit government permission. Furthermore, the new rules necessitate that state-owned carriers BSNL and MTNL reapply for spectrum at market-linked prices, moving away from routine renewals, thereby imposing a significant fiscal discipline test on these entities.

India has tightened regulations around the emerging satellite communications sector. This meant that for the likes of Elon Musk's Starlink, Bharti Group-backed Eutelsat OneWeb, and Jio Satcom, getting spectrum is only the first of several hurdles they will now need to clear before beaming internet and phone services to Indian consumers.

The Department of Telecommunications (DoT) published the draft Telecommunications (Spectrum Assignment by Administrative Process) Rules, 2026, in the Gazette last week.

The draft policy is open for a 30-day window, inviting public comments. The rules formalise the government's decision to assign satellite spectrum through an administrative process, without auction, against fixed annual fees. However, they simultaneously layer in a new, mandatory security clearance requirement before any consumer-facing satellite broadband or satellite phone service can go live.

Under the draft rules, satcom companies cannot connect their networks to public telecommunication networks, including traditional phone lines, mobile networks, or the internet, without explicit government permission.

For instance, Jio Satcom or Starlink could receive spectrum and even a Letter of Intent before all security clearances are in place, but consumer services might not begin until those clearances are fully obtained.

Spectrum charges for commercially assigned satellite services would be pegged to market prices, specifically, the reserve price or price determined by the most recent spectrum auction.

For BSNL and MTNL, the rules mean a major shift in procedure. Their existing spectrum assignments will not be eligible for routine renewal. Instead, both state-owned carriers will need to submit fresh applications and pay market-linked prices each time they seek spectrum.

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