India watchdog plans to limit satellite permits to five years, defying Musk's Starlink
India’s telecom regulator is considering a proposal to allocate satellite broadband spectrum for an initial period of approximately five years, in a move that challenges Elon Musk’s Starlink, which has been pushing for a 20-year license, according to a senior government official.
The Telecom Regulatory Authority of India (TRAI) is currently preparing key recommendations for the central government on various aspects, including the duration and pricing of administratively allocated satellite spectrum.
This development comes shortly after a new partnership between Musk’s Starlink and Indian billionaire Mukesh Ambani, which will allow Starlink devices to be sold through Reliance retail stores—significantly expanding its reach across India. Previously, Ambani’s telecom arm had opposed Starlink’s stance, lobbying for the spectrum to be auctioned instead of allocated directly by the government.
In public submissions, Starlink has advocated for a 20-year license to ensure affordable pricing and to support its long-term investment and business strategies. In contrast, Reliance has suggested a shorter three-year term, proposing a review afterward to evaluate market dynamics.
Bharti Airtel, another major Indian telecom operator, has also recommended a license tenure between three to five years. Notably, Airtel, like Reliance, has also entered into a distribution agreement with Starlink.
Responding to industry inputs, TRAI is reportedly leaning toward endorsing a shorter license duration of around five years to allow flexibility in assessing the sector's growth trajectory, the government source added.
According to estimates by KPMG, India’s satellite communication industry is poised for significant expansion, with projections indicating the sector could reach a market size of $25 billion by 2028—a more than tenfold increase from its current valuation.
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