Closing the Divide: Growing role of satcom in digital inclusion

India’s digital revolution is reaching new heights. As the country advances towards a more digitally empowered future, satellite communications (satcom) is emerging as a vital enabler to close the digital divide, especially in remote and underserved regions. Beyond backhaul, satellites enable mobility services for vehicles, vessels and aircraft, connect internet of things devices in hard-to-reach locations, all of which keep communications running during disasters, when ground networks fail. With the government’s push for inclusive connectivity, recent policy shifts and the entry of both global and domestic players into India’s satellite broadband market, the groundwork is in place for satcom to become the next major step in the nation’s connectivity journey.

Regulatory reforms

The government has advanced a slew of policy measures to ease satcom deployment. It has removed artificial limits on antenna size and carrier speed, and scrapped server-side charges such as the network operations centre fee, the Standing Advisory Committee on Frequency Allocation fee, the network performance verification device fee and additional licence fees for NQM (non-quantifiable machine) or IoP (internet of people) devices under the VSAT-PSTN satellite CUG (closed user group) licence. To attract funds, 100 per cent foreign direct investment is permitted under the automatic route, with simpler digital application processes aimed at improving pricing, conditions and content delivery.

The Indian Space Policy, 2023 has opened the space segment to wider private and start-up participation, creating a level playing field for non-government entities. Its implementation has been supported by the Norms, Guidelines and Procedures issued in May 2024, which define activities requiring Indian National Space Promotion and Authorisation Centre (IN-SPACe) authorisation and the associated compliance practices. The push for non-terrestrial networks is intended to extend connectivity beyond terrestrial reach and stimulate innovation. In September 2024, the Telecom Regulatory Authority of India (TRAI) recommended a new service authorisation framework under the Telecommunications Act, 2023, including a unified service authorisation to achieve the goal of “One Nation, One Authorisation.”

Further, in May 2025, TRAI proposed five-year assignments of spectrum (extendable by two), AGR-linked charges with a minimum annual fee, an additional per-subscriber urban levy for non-GSO services to favour rural roll-outs and a 30-day timeline for in-principle approvals. Additionally, the Telecommunications Act, 2023 distinguishes auctioned spectrum from bands that can be assigned administratively, covering satellite services listed in the First Schedule. Separately, the Department of Telecommunications’ (DoT) 2025 security validation now requires licensees to clear trial phases before commercial service.

Starlink’s entry

In July 2025, Starlink received final authorisation from IN-SPACe and in early September, DoT granted trial spectrum to validate systems and meet security conditions ahead of the launch. This makes Starlink, after Eutelsat OneWeb and Jio Satellite Communications, one of the first three players cleared to offer satellite internet services in India, while Amazon’s Project Kuiper is still awaiting approval. India has opted for administrative assignment of satellite spectrum and TRAI’s May 2025 recommendations on pricing and terms are with the government for a final decision. Starlink has distribution arrangements with Bharti Airtel and reported retail tie-ups via Reliance channels, even as Airtel remains invested in Eutelsat OneWeb.

Growth and investment opportunities

As per industry estimates, India’s satcom market size stands at $3.25 billion in 2025 and is projected to reach $6.89 billion by 2030, translating into a 16.21 per cent CAGR over the forecast period.

The policy and investment context are also moving in satcom’s favour. Satcom features in Bharat 6G Vision through non-terrestrial networks to extend universal coverage and the government is opening the space sector to greater private participation, alongside the Indian Space Research Organisation (ISRO) and IN-SPACe. According to KPMG, India ranks fifth globally for private space-tech investment, with about 119 start-ups raising around $2 billion as of May 2025. Together, these shifts are pushing satellite broadband from a niche backhaul option towards a mainstream pillar of digital infrastructure.

At present, Jio Satellite Communications (with SES’s O3b mPOWER) is preparing enterprise-first services on O3b mPOWER (subject to clearances), while Eutelsat OneWeb targets enterprise, maritime and aviation connectivity with Airtel and Nelco distribution.

Outlook

India’s satcom services sector is on the brink of a major transformation, with numerous technological advancements and regulatory reforms set to reshape its future. The immediate priority is execution at scale – finalise and notify spectrum assignments; implement the security validation regime; pair pricing with affordability for underserved markets; fast-track gateway and other ground infrastructure; integrate non-terrestrial networks with 5G fixed wireless access; and open enterprise corridors with clear, sector-specific templates. If these six actions land within the next couple of years, satcom can shift from a backhaul fallback to a co-equal access layer in India’s digital stack, strong enough for rural inclusion, resilient in disasters and ready for artificial intelligence-era enterprise workloads.