New Delhi: The country’s highest telecom decision-making body has approved the framework for satellite broadband spectrum allocation, paving the way for Elon Musk’s Starlink, along with OneWeb, and Reliance Jio’s satellite to launch commercial services in India.The Digital Communication Commission (DCC), which is the apex body of the Department of Telecommunication (DoT), has approved the majority of recommendations made by the Telecom Regulatory Authority of India (TRAI) on satellite spectrum allocation in a meeting held on September 3. The decision comes over eight months after TRAI submitted its recommendations to the government in December 2025.Starlink’s betOn August 20, Starlink reapplied to IN-SPACe for the authorisation of its Gen 2 satellite constellation, covering nearly 30,000 low Earth orbit (LEO) satellites, operating at altitudes between 340-615 kms. It includes capabilities such as direct-to-device (D2D) technology, which would allow ordinary smartphones to connect to Starlink satellites without any specialised hardware. Earlier, a Gen 2 application was rejected by IN-SPACe because certain features and spectrum bands were not meeting Indian requirements. SpaceX initially planned to deploy 42,000 Gen 2 satellites but could only seek permission for 30,000 of these in India. If approved, the Gen 2 network would give Starlink a significant capacity and coverage edge over rivals including Reliance Jio, Eutelsat OneWeb, and Amazon Leo. IN-SPACe had, however, already approved Starlink’s Gen 1 constellation of 4,408 satellites in July 2025. What did the DCC Approve? The approved framework sets a spectrum usage charge of 4-5% of the companies’ annual Adjusted Gross Revenue (AGR), discounted to 4% for operations in rural and remote areas. The spectrum will be allocated for an initial period of five years, which might get a two-year extension. The DoT, however, did not accept every part of TRAI’s plan. TRAI had recommended an additional levy of Rs 500 per urban subscriber per year for NGSO-based satellite services, with rural and remote subscribers exempt from the charge. The DoT rejected this recommendation citing that it would be practically difficult in clearly distinguishing between urban and rural users. It also turned down TRAI’s proposal to subsidise fixed satellite terminals for rural and remote subscribers through Digital Bharat Nidhi fund – stating that the existing framework does not provide for such subsidies. TRAI had flagged the high one-time cost of satellite terminals, between Rs 20,000-50,000, as a significant barrier to adoption in underserved areas. The proposal is yet to get approval from the Union Cabinet for final ratification. After that, every company that holds a license must complete a second stage of security clearance from the Ministry of Home Affairs and other agencies to demonstrate that their ground equipment and systems actually meet India’s security standards. Foreign companies like Starlink and Amazon Leo require Foreign Direct Investment (FDI) clearance, unlike Eutelsat OneWeb and Jio Satellite. “The approval removes a key regulatory hurdle for satellite broadband in India. A 5% spectrum usage charge, reduced to 4% for rural and remote areas, is a pragmatic approach that balances government revenue with the economics of a capital-intensive business. The five-year spectrum tenure also provides operators greater investment certainty. The bigger game now is the execution, how quickly the players can scale coverage, and make satellite broadband affordable beyond underserved markets”, Vinish Bawa, leader of telecom practice at PwC India, told the Business Standard. Starlink’s partnership plansIndia’s private telecom market has long been dominated by Reliance Jio and Bharti Airtel and both of them have announced separate partnerships with Starlink to offer its satellite internet services to their customers. The deals, pending regulatory approvals, raise questions about the significant shift in the country’s telecom sector. The announcements had brought into focus the absence of parliamentary or public debate on what these deals would mean for national security and other aspects of Indian telecommunications.Last month, the Union government had directed state governments that have entered into agreements with Elon Musk-owned Starlink to stop discussions and projects involving the satellite internet company until it secures the required licence to operate in India. Maharashtra, Gujarat, Meghalaya and Goa are among the states that have signed agreements with Starlink over the past year.