Us Lists India’s Preference for Domestic Satellites for DTH, Localised Internet Shutdown as Trade Barrier

The US has listed India’s preference for use of domestic satellites for direct-to-home (DTH) television services and localised shutdown of internet as a barrier to foreign trade.

The 2026 National Trade Estimate Report on Foreign Trade Barriers released by the office of the US Trade Representative (USTR), also flagged that since 2021 American firms have been subject to increasing number of takedown requests for content and user accounts related to issues that appear “politically motivated”.

The report noted that localised internet shutdowns restrict access to information and services, disrupting commercial operations, and thereby undermining a free and open internet and impeding trade in the digital economy.

“The United States continues to monitor the impact of these events on US trade and investment, including services exports,” according to the report released on Tuesday.

On satellite services, the report said the Ministry of Information and Broadcasting maintains a preference for Indian satellites to provide capacity for direct-to-home (DTH) subscription television services.

“In practice, DTH licensees have not been permitted to contract directly with foreign satellite operators and have encountered procedural delays when they have sought to do so,” it said.

The report noted that DTH licensees must procure satellite capacity through Antrix, the commercial arm of the Indian Space Research Organisation (ISRO), which in turn only permits foreign procurements if it does not have available capacity on Indian satellites.

“When ISRO does permit the use of foreign satellite capacity, the foreign satellite operator must sell the capacity to ISRO, which in turn resells the capacity to the end-user with a surcharge,” it said.

The report said that the US continues to encourage India to adopt an “open skies” satellite policy to allow consumers the flexibility to select the satellite capacity provider that best suits their business requirements and to promote market access for foreign satellite service providers.

The report also flagged the new security instructions issued by the Department of Telecommunications that require sat-com providers to ensure their systems can support real-time interception, block government-specified websites and users, restrict service in sensitive areas, and route all Indian user traffic and DNS (Domain Name System) resolution through facilities located within India.

It noted that satcom providers are also required to register and regularly verify user terminals, provide detailed user and device information to law enforcement, implement geo-fencing and special monitoring zones near borders, and prevent unauthorised access or location spoofing.

“Additionally, satcom providers must commit to not transferring or decrypting Indian user data outside the country and submit a phased plan to source at least 20% of their ground infrastructure in India within five years of commercial launch,” the report said.