DoT Draft Spectrum Rules Leave Starlink and Rival Broadband Operators Out
India’s Department of Telecommunications (the government office that runs phone and internet rules, called the DoT) has put out new draft spectrum rules. A “draft” is a first version that is not final yet. These rules have a big gap. They set up a clear plan for many satellite and telecom services. But they leave out Starlink and the other companies that want to sell fast internet from space. So those companies still have no clear way to start selling it in India.
What is spectrum? Spectrum is the group of radio airwaves that phones, satellites, and TV signals travel on. The government owns and controls it. To run a service, a company must be given its own slice of these airwaves. According to reports by Medianama, The Tribune, and Outlook Business, the new draft rules give this spectrum to many companies. But they do not give it to the new satellite internet companies.
What are the new draft rules?
The rules are called the Draft Telecommunications (Spectrum Assignment by Administrative Process) Rules, 2026. The words “administrative process” just mean the government hands out the spectrum itself. It does not sell it in an auction. (An auction is a public sale where the company that offers the most money wins.)
These rules come under the Telecommunications Act, 2023. That is India’s main telecom law. According to Outlook Business, the draft covers 19 kinds of users who get spectrum without bidding for it. These users are listed in a part of the law called Schedule I.
The covered groups include:
- VSAT operators. VSAT means Very Small Aperture Terminal. These are the small dish antennas that banks and shops use to send data.
- Direct-to-Home (DTH) TV platforms. These beam TV straight to a dish on your home.
- Teleports and broadcasters. (A teleport is a ground station that sends and gets satellite signals.)
- BSNL’s satellite phone services. The rules also save airwaves for BSNL and MTNL, which are phone companies owned by the government.
- Railways and weather (meteorological) services.
Who exactly is left out?
The big names missing from the draft are the satellite broadband providers. (“Broadband” just means fast internet.) According to the reports, these are Starlink (owned by Elon Musk’s company SpaceX), Eutelsat OneWeb, and Reliance Jio’s satellite arm, Jio Satellite Communications.
These companies use NGSO systems. NGSO stands for Non-Geostationary Orbit. In simple words, their satellites fly low and keep moving across the sky. They do not stay fixed over one spot. Low-flying satellites give faster internet. That is why this kind of satellite is good for reaching far-off villages.
Here is the strange part. According to Outlook Business, Starlink already won its operating licence back in 2024. (A licence is the official permission to run a service.) OneWeb India and Jio Satellite hold licences too. But a licence alone is not enough. Without its own slice of spectrum, a company cannot switch on a full service for paying customers.
Strict security checks and rollout curbs
For the satellite companies that the draft does cover, the rules are strict. According to The Tribune, a company must pass a security check before it gets any spectrum. The steps come in this order. First the company gets a letter of intent. (That is a letter saying the government plans to give it spectrum.) Next it must pass the security check. Only after that does it get the real spectrum.
The central government must also say a clear “yes” before any satellite phone or internet service goes live. There is one more rule. Satellite networks may not connect straight into normal phone and internet networks. That means the public telephone network, mobile networks, and the regular internet. They can only connect if the government allows it.
What it could cost
The draft also lists the fees. According to The Tribune, the yearly charge for each terminal (one user’s device or dish) would be from Rs 30,000 to Rs 50 lakh. The exact amount depends on the type of service. To apply for spectrum, a company pays a fee of Rs 1,000, and this fee is not given back. The prices follow market rates for the airwaves. (Market rate means the going price set by supply and demand.)
| Item | Detail |
|---|---|
| Draft name | Telecommunications (Spectrum Assignment by Administrative Process) Rules, 2026 |
| Released | June 2026 (reported June 17 / June 22) |
| Public comment window | 30 days (until July 18, 2026) |
| Assignment method | Administrative (no auction) |
| User categories covered | 19 (Schedule I, Telecom Act 2023) |
| Annual fee per terminal | Rs 30,000 to Rs 50 lakh |
| Application fee | Rs 1,000 (non-refundable) |
| Operators left out | Starlink, Eutelsat OneWeb, Jio Satellite (NGSO broadband) |
Why this gap matters
This missing piece is not a small thing. According to Outlook Business, the telecom regulator TRAI had already given its advice on NGSO spectrum in May 2025. (A regulator is the body that makes and checks the rules for an industry.) The DoT had asked TRAI for this advice in July 2024. Yet the new draft came out about nine months later and still does not use those ideas.
This delay goes against India’s own goals. The National Broadband Mission 2.0 is a plan to bring internet to 1.7 lakh villages that have none today. Reaching these far-off places is exactly the job that low-orbit satellite internet is built for. Without spectrum rules for the NGSO companies, this goal gets harder to reach.
Why it matters (especially for India and founders)
India already has over 1 billion internet users. But people in villages and hill areas still find it hard to get online. Satellite internet from space could close that gap fast. So a clear, fair set of spectrum rules is not just paperwork. It decides when millions of village homes finally get real internet.
For founders and the startup world, the lesson is about timing and being sure. (A founder is a person who starts a company.) A company can hold a licence, raise money, and build its gear, and still be stuck if one government step is missing. This same care shapes how investors back risky bets. It is much like how the markets watched the recent SEBI move on Garuda and startup investors. Clear rules give companies the courage to spend money and hire people.
Gaps like this also sit next to a bigger push to update India’s digital and tech systems. That push runs from satellite internet to new AI tools against cybercrime. (AI, or artificial intelligence, is computer software that can learn and make choices on its own.) Getting the basic setup right is the base for all of it.
FAQ
Why is Starlink left out of the DoT draft spectrum rules?
Starlink and the other NGSO satellite internet companies are not in this draft because the government plans a separate set of rules for them. The current rules cover older satellite and telecom services. So Starlink still has no spectrum of its own to start a full, paid service.
Does Starlink already have a licence in India?
Yes. According to Outlook Business, Starlink got its operating licence in 2024. OneWeb India and Jio Satellite hold licences too. But a licence is only one step. Without spectrum, they cannot run a full paid service for customers.
How long is the public comment window?
The draft is open for public comments for 30 days. This is reported to run until July 18, 2026. (A public comment window is the time when anyone can send in their views.) After that, the DoT will read the feedback before it makes the rules final.
The takeaway: The DoT draft spectrum rules build a clear path for many telecom and satellite services. But they leave the new satellite internet companies waiting. Until separate NGSO rules come, Starlink, OneWeb, and Jio Satellite stay licensed but cannot launch at full scale. And rural India keeps waiting for faster internet.
