India's satellite internet sector has moved one step closer to a major rollout, with the government clearing an important hurdle related to spectrum allocation.

Companies such as Starlink, OneWeb and Reliance Jio are expected to benefit from the development as they prepare to offer satellite-based broadband services in India.

According to sources, the Group of Secretaries has approved the Telecom Regulatory Authority of India's (TRAI) recommendations on satellite spectrum allocation. The Digital Communications Commission also reportedly discussed the matter at its meeting last week.

However, the process is not complete yet. The proposal will now require final approval from the Union Cabinet before the new spectrum allocation framework can be implemented.

Spectrum to Be Allocated for Five Years

TRAI had submitted its recommendations on satellite spectrum allocation last year. Under the framework that has now received approval from the Group of Secretaries, satellite communication companies could receive spectrum for a period of five years.

In exchange, companies will be required to pay a Spectrum Usage Charge (SUC) equivalent to 5% of Adjusted Gross Revenue (AGR).

The government is also considering a lower SUC for companies that provide satellite broadband services in rural and underserved areas.

This could encourage satellite internet providers to expand their networks beyond major cities and bring connectivity to locations where conventional fibre or mobile networks are difficult or expensive to deploy.

Why Is Satellite Internet Important for India?

Satellite broadband can play an important role in connecting remote areas where laying fibre-optic cables or building extensive terrestrial infrastructure may not be practical.

Services from companies such as Starlink, OneWeb and Jio could potentially provide high-speed internet access to homes, businesses and institutions in areas with limited connectivity.

For users in remote villages, mountainous regions and other underserved locations, satellite internet could provide an alternative to traditional broadband and mobile networks.

Cabinet Approval Is Still Pending

Although the Group of Secretaries has cleared the recommendations, satellite spectrum allocation has not yet received the final green light.

The government will now have to seek Cabinet approval. Only after the required approvals and implementation process are completed will satellite broadband companies be able to move forward under the new spectrum framework.

If the proposal receives final approval, it could mark an important step in India's efforts to expand high-speed internet access and accelerate the country's satellite communications sector.

The next major development will therefore be the government's final decision on the spectrum allocation framework.