Satcom: DoT to seek TRAI recommendations for LEO Guidelines

People familiar with the matter have said that the DoT will soon ask TRAI to unveil a comprehensive discussion paper on a new licensing framework for low earth orbit (LEO) satellite constellations operators. The new licensing framework will apply to sector players like Starlink, OneWeb and so on.

LEO Segment to Get New Guidelines

One of people said that TRAI will bring a paper on the matter soon. In the paper, the sector regulator will seek industry views "on whether a new category of licences must be created for LEO players operating satellite gateways in India, or whether the scope of existing satcom permits/processes need to be widened and also simplified to accommodate them”.

The source, cited by ETTelecom, also added that TRAI is also likely to seek views on spectrum bands. TRAI will ask whether spectrum should be allotted for LEO satellite gateway operations. In this case, a gateway will control an LEO constellation. It will also facilitate bandwidth connectivity between a satellite and the end-user.

This move comes in the backdrop of the race of deploying satcom in India heating up. Starlink has already announced commercial launch plans and are accepting pre-orders; OneWeb will bring their network at the same time. Also, Amazon and its Project Kuiper are on the outside looking in, eyeing the segment with intent.

India To Become a Satcom Hub

These developments come at a time when these global players are looking at India for a potential $500 million opportunity in satcom. Rural India still suffers from lack of connectivity and access to basic telecom service. Almost three-fourths of rural India does not have access to broadband.

This is an opportunity too big to pass on. Given that all the next-gen satcom satellites have backhaul capacity, in future, this opportunity can reap staggering benefits as satellites may be used for telecom backhaul to rural areas.

However, LEO systems are costly. Satellite broadband rates in India are nearly 30 times that of 4G. Its costs $15-20 per GB, compared with $0.68 for mobile data. With growing competitions, these prices can go down, but only time will tell that.

Policy Hurdles to Cross

OneWeb has already told TRAI that it plans to operate two satellite gateways in India. Also, the Bharti-backed satcom company said that it currently operates gateways globally on the ‘Ka’ or 28 GHz band. But, going forward, the Q and V band, which fall in the mmWave spectrum, will assume the role of the primary instrument for satcom operators.

Things might not be so simple for these companies to start business in India. Under the current satcom policy, a VSAT services permit-holder needs to establish satellite earth station gateways in India for law enforcement purposes. The operators also need approval from the Department of Space (DoS) to use satellite frequencies. Right now, there is no separate licence now for gateway operations, since establishing gateways is now part of a VSAT licence.

Also, for satcom operators to actually think about telecom backhaul, they will have to acquire a National Long Distance license first. Therefore, a need to relax the policies a bit, and proper guidelines is evident. DoT's move is a step in the right direction.