India’s new draft spectrum rules clarify how non-auction airwaves will be allocated to a wide range of terrestrial and satellite users, including VSATs, DTH platforms and BSNL’s satellite services
However, Non-Geostationary Orbit satellite operators remain outside the framework, even though they hold licences
This regulatory gap blocks commercial LEO broadband rollouts and clashes with the National Broadband Mission 2.0’s target of connecting 1.7 lakh unserved villages
The Department of Telecommunications (DoT) has released draft rules governing non-auction spectrum assignments under the Telecommunications Act, 2023, laying out a comprehensive framework for how spectrum is allocated to users who receive airwaves without going through an auction.
The rules set out eligibility criteria, application procedures, spectrum charges and assignment conditions across 19 categories of users covered under Schedule I of the Telecom Act, from defence enforcement to broadcasters, railways, meteorological services, community radio stations and state-run carriers BSNL and MTNL.
1 June 2026
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On the satellite side, the rules govern traditional services, captive and commercial VSAT operators, Direct-to-Home platforms, teleports, digital satellite news gathering services and BSNL's Global Mobile Personal Communication by Satellite service.
Who Is Left Out and Why It Matters
The draft does not refer to Non-Geostationary Orbit Satellite Operators (NGSO), companies behind low-earth orbit (LEO) broadband services.
However, the omission carries practical weight. NGSOs are licensed, but lack a governing spectrum to introduce commercial broadband services at scale. While a spectrum cannot be assigned until the pricing and condition framework is in place.
The draft's silence on NGSO also goes against the government's stated priorities. India has over 1,002 million internet subscribers as of April-June 2025, the PIB note highlighted.
The same note positions LEO-based satellite broadband as central to bridging the gap between the remote parts of the country and establishes that the National Broadband Mission 2.0 targets 1.7 lakh villages without broadband connectivity.
The Regulatory Trail
A 2025 Telecom Regulatory Authority of India (TRIA) recommendations document reveals that the question of satellite spectrum has been in motion since 2021, when DoT first asked TRAI to recommend terms for space-based communication spectrum.
After the Telecommunications Act, 2023, placed satellite services in the administrative track under Schedule I, DoT sent a fresh reference to TRAI in July 2024, specifically seeking recommendations on NGSO-based fixed satellite services and mobile satellite services, including spectrum pricing.
TRAI released a consultation paper in September 2024, received comments from 30 stakeholders, held an open house discussion, and published its final recommendations in May 2025.
After nine months, the draft rules for spectrum assignments released by DoT still do not implement any of these recommendations made by TRAI in May.
