Centre likely to propose norms to cap subscriber limit for satellite broadband services

The Indian government is reportedly considering a cap on the number of subscribers for satellite broadband services such as Starlink and Amazon Kuiper. The proposed curb comes amid concerns from telecom companies that satcom firms could use their permits to gain a large user base.

The norms also address the concerns of telcos that believe satcom companies could enter the retail mobile broadband space through the ‘back door’ by using satcom permits to grab a large user base. This could potentially threaten the main revenue stream of incumbent telcos.

The Department of Telecommunications (DoT) is also mulling fresh permissions for capacity increases by these companies.

The proposed regulations would apply to all satellite systems, including Starlink, Amazon Kuiper, Eutelsat OneWeb, and Jio-SES.

DoT is said to be considering rules that would require companies seeking to expand capacity to seek new permissions.

New norms on capacity declaration

DoT is also considering rules that would link subscriber capacity to the operational permits issued. Satcom firms would have to declare their capacity and per-user speed upfront, with the ceiling on subscribers determined from that data.

If a company exceeds this limit, it would have to seek fresh permission and accept new terms, including revised spectrum pricing.

DoT is also said to be more aggressive than the Telecom Regulatory Authority of India (TRAI) on this issue. It wants the power to revise pricing and conditions even before the five-year period is up, if technology changes or if operators start offering services beyond basic data and internet.