TRAI Recommends New Satellite Communication Network Provider Authorisation: SCNaaS, 8% AGR Fee, D2D Services - UPSC Notes

 

On 5 November 2026, the Telecom Regulatory Authority of India (TRAI) released its recommendations on "the Framework for Satellite Communication Network Provider Authorisation, and Assignment of Spectrum to Satellite Communication Network Providers" (Press Release No. 151/2026). The recommendations lay out how satellite communication networks will be authorised and assigned spectrum in India under the Telecommunications Act, 2023.

A new authorisation for satellite network providers

• New authorisation: a "Satellite Communication Network Provider - Authorisation" should be introduced under Section 3(1)(b) of the Telecommunications Act, 2023.
• Service model: authorised entities may provide Satellite Communication Network as a Service (SCNaaS) to eligible service providers, but may not provide telecommunication services directly to end users.
• Coverage and duration: the authorisation would be for the national area, with a maximum duration of 20 years and a provision for renewal for up to 20 years.
• Services permitted: Fixed Satellite Service (FSS), Mobile Satellite Service (MSS), Direct-to-Device (D2D) services via satellite using MSS, and D2D services via satellite using IMT spectrum.
• Who can use SCNaaS: any licensee or authorised entity permitted to provide satellite-based communication services, or telecommunication services through a satellite network.

How spectrum would be assigned

• SCN provider authorised entities may seek satellite spectrum (FSS and MSS) from the Central Government and/or use the spectrum assigned to partnering service providers.
• TRAI recommended administrative assignment of FSS spectrum for feeder links; FSS and MSS spectrum for user links may also be assigned, subject to conditions.
• Spectrum assignment would initially be valid for up to five years, extendable by two years.
• Assignments are subject to alignment with the National Frequency Allocation Plan.

What it would cost

• Authorisation fee: 8 per cent of Adjusted Gross Revenue (AGR), with no minimum authorisation fee.
• Spectrum charges: for NGSO-based FSS, a per-subscriber charge with a differential between urban and rural areas (an additional charge for urban areas); gateway charges paid to another authorised entity would be allowed as deductions, along with GST paid to government.
• SCNaaS charges reported as revenue by the SCN provider would be permitted as a deduction from the ApGR of the partnering service entity, subject to documentation.

Direct-to-Device services

TRAI recommended permitting IMT-based D2D services via satellite on a non-interference, non-protection basis under the provisions of Article 4.4 of the ITU Radio Regulations, without waiting for the outcome of WRC-27. It also recommended encouraging smartphone handset manufacturers to include modules supporting the applicable MSS bands in future handsets sold in India.

Background

The Telecommunications Act, 2023 replaced the Indian Telegraph Act, 1885 and provides for administrative assignment of spectrum for certain services, including satellite communication, instead of auctions. The route for assigning satellite spectrum has been contested since the Supreme Court's 2G spectrum judgment (2012) mandated auctions for scarce natural resources, with the government maintaining that satellite spectrum is shared and not amenable to auctions. TRAI's recommendations operationalise the framework the Act envisages; the Central Government takes the final decision.

UPSC angle

• GS-III (Science and Technology): satellite communication networks, FSS/MSS/D2D services, NGSO constellations, and India's space-based connectivity policy.
• GS-II (Polity and Governance): role of statutory regulators (TRAI), delegated legislation, and the balance between auctions and administrative assignment of natural resources after the 2G judgment.
• GS-III (Economy): AGR-based licence fee structures and their history in the telecom sector.

Source: TRAI Press Release No. 151/2026 dated 5 November 2026, and the recommendations document on trai.gov.in.