Starlink Needs to Clear Roadblocks as TRAI Proposes 5-Year Limit for Satellite Broadband Licenses
NEW DELHI — The Telecom Regulatory Authority of India (TRAI) will propose limiting satellite broadband licenses to five years as part of a new ruling announced on March 13, 2025, a move that could shake up Elon Musk’s Starlink plans in the country.
This decision, to test market growth, has sparked debate in India’s rapidly changing telecoms sector as Starlink had sought a 20-year permit.
A Shorter Leash for Satellite Services
TRAI’s proposal arrives as India readies to host satellite broadband services. Satellite spectrum will be assigned administratively, unlike traditional telecom licenses that are auctioned off for 20-year terms. The regulator intends to keep the term short — five years — so it can monitor how the market evolves. This stands in stark contrast to Starlink’s insistence that Congress give it a longer license to facilitate low prices and long-term thinking.
This comes after Starlink recently partnered with Indian telecom giants Reliance Jio and Bharti Airtel. Both signed deals this week to distribute Starlink devices — both are eyeing India’s vast rural market. Musk’s company may have to reassess its approach when faced with TRAI’s five-year limit. TRAI will take around a month to finalize its recommendations, according to a senior government official, who added that the recommendations will be submitted to India’s telecom ministry.
Why Five Years? Background and Context
India’s telecommunications landscape is in flux. Satellite broadband offers hope for connecting remote regions that cable can’t reach. Starlink intends to offer high-speed internet across the country through its low-orbit satellites. Reliance and Airtel, Indian companies, fear they’ll lose customers. Reliance spent $19 billion on airwave auctions and is concerned about cheaper satellite services.
TRAI’s proposal is in line with the wishes of Reliance and Airtel. Reliance sought a three-year duration; Airtel proposed three to five years. Both would like India to revisit the market down the road. “This will help understand how the market stabilises, there’s no need to go beyond five years,” a senior government source told Reuters. The short-term lets regulators calibrate spectrum prices as the industry matures.
But Starlink says it needs a 20-year license. Long-term stability fosters large satellite and ground equipment investments, it says. The company’s agreements with Jio and Airtel were contingent on regulatory clearance, which is now left hanging. Modi’s recent meeting with Musk in Washington about tech and innovation adds pressure to find a compromise.
Market Reaction and Industry Responses
The plan has been met with mixed reactions. Others argue a five-year limitation encourages competition and guards against monopolies. Some worry it could drive away investors seeking longer lockdowns. India’s satellite market is projected to hit $25 billion by 2028, according to KPMG, so this is a high-stakes decision.
In the short term, a more agile approach may come with additional costs and uncertainty for Starlink. The plans with Jio and Airtel, both of which do store sales of its devices, may therefore need to be renegotiated. And while consumers in rural India anticipate improved internet services. TRAI’s decision seeks to shield domestic stakeholders while gauging satellite broadband’s possibilities.
What’s Next for India’s Digital Future?
TRAI’s proposal is not final. It will take feedback before filing its plan to the telecom ministry in April 2025. If approved, the five-year limit could establish a new worldwide standard for satellite services. For Starlink, it’s an obstacle that could stall its India plans. Now, the company has to lobby more or work within girded rules.
This ruling can also affect the way India grows digitally. A shorter license makes flexibility possible, but risks stunting major projects. With the end of satellite broadband in sight, everyone is watching TRAI. Will it remain five years or will Musk’s aspirations be the deciding factor? The next month will be critical.