Government Rejects TRAI Proposal To Subsidise Satellite Internet For Rural Users

A funding crunch and mandate mismatch stall plans for satellite internet subsidies, leaving rural users and providers to shoulder high terminal costs as India stays focused on core infrastructure.

The Indian government has declined a proposal from the Telecom Regulatory Authority of India (TRAI) to subsidise satellite internet services for rural and remote regions. Officials said the state has limited fiscal space and cannot support additional subsidy schemes at this stage.

The Digital Bharat Nidhi (DBN) fund, which was expected to finance the subsidies, already has commitments of nearly ₹1.73 trillion for existing programmes. These include BharatNet expansion, village-level 4G deployment and other digital infrastructure projects. As a result, only a small portion of the fund remains available for new initiatives.

Officials also noted that DBN is not designed for direct benefit transfers to users. Its framework supports area-based investments, such as capital expenditure for towers, fibre, and equipment, rather than individual device-level subsidies.

Extending DBN to cover satellite terminal support, they said, would fall outside its mandate and could duplicate existing efforts.

- Advertisement -

The government expressed concern that TRAI’s suggested approach, offering subsidies for satellite user terminals, could lead to inefficient targeting. They warned that it may also create overlap with broader connectivity schemes already funded through DBN.

With subsidies off the table, customers in remote areas may need to purchase satellite terminals themselves. These devices cost around ₹100,000 each. Alternatively, operators such as Starlink, Eutelsat OneWeb, Jio Satellite and Amazon’s Project Kuiper will have to absorb the cost if they want to grow their subscriber base in rural markets.

Instead of device-level subsidies, the government is prioritising the rollout of fibre networks, improved data centre connectivity and stronger cybersecurity measures as part of its digital infrastructure roadmap for 2025.

A revised spectrum usage fee of 5% of adjusted gross revenue will apply to satellite operators, higher than the 4% recommended by TRAI.

Telecom operators argue that subsidising satellite services through DBN would be unfair, as terrestrial players contribute the majority of funds. Industry groups, including the Broadband India Forum, continue to push for support for satellite technologies. However, the government remains firm on its infrastructure-first strategy.

- Advertisement -
Loading form…
Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

Industry's Buzz

Representational image of a satellite

Iceye Expands SAR Satellite Network with Latest SpaceX Launch

0
Four new Earth observation satellites deployed as production capacity doubles to meet growing global demand.  Iceye has successfully deployed four additional synthetic aperture radar (SAR)...
Image for representation purpose

UK Expands Semiconductor Catapult For AI And Defence Electronics

0
The UK’s expanded Semiconductor Catapult will give semiconductor companies access to integration, testing and validation facilities to reduce technical risks and advance AI hardware,...
BEL

BEL Wins INR 770 Crore Order for Advanced Defence Radars

0
The Ministry of Defence has awarded BEL a ₹770 crore contract for indigenous lightweight radars that can detect and track fighter-sized targets and mini...
Optivolt

Optivolt Raises USD32 Million to Scale Solar Power Electronics

0
Optivolt has raised $32 million to scale its panel-integrated power electronics, designed to reduce energy losses under real-world solar conditions. The company has already...
Rashi Peripherals

Rashi- Restar JV Eyes USD100 Million Semiconductor Revenue

0
Rashi Peripherals and Japan’s Restar Corporation aim to accelerate semiconductor growth through local engineering, design capabilities and application-specific solutions for India’s automotive, consumer electronics...

Learn From Leaders

Pravin Patel, Founder and Chairman, Brio Agri, India

“Our goal is not to replace farmers, but to empower them with better tools,...

0
In an exclusive interaction with EFY's Saba Aafreen, Pravin Patel, Founder and Chairman of Brio Agri, discusses building hydroponics and controlled-environment agriculture in India,...

Does India’s Chip Packaging Growth Need Local Materials At Scale?

0
What will it take for specialised semiconductor materials manufacturing to grow in India? Packaging volumes will be a key factor as OSAT facilities move...
Ronak Kumar Samantray, Founder, TM2Space Technologies Pvt Ltd.

“Our goal is to build data centres in space.” – Ronak Kumar Samantray, TM2Space

0
A space startup aims to build orbital data centres, letting users run AI models and store data on satellites while also supplying satellite hardware...

India’s Photonics Puzzle Is Finally Coming Together 

0
Can India turn its scattered photonics capabilities into a stronger industry? A new association aims to connect the ecosystem and strengthen the domestic value...
Jin Bains, CEO, Mini-Circuits

Mini-Circuits CEO Jin Bains on Navigating High-Frequency Component SWaP-C Constraints, Emerging Markets, and Career...

0
In this exclusive, Jin Bains, Chief Executive Officer (CEO) of Mini-Circuits, explains in a conversation with Dilin Anand of EFY about areas of emerging...

Startups

Pranay Rebala, Vice President of Product, BluJ Aerospace

“Rather Than Waiting For The Technology To Mature, We Are Ready For The Next...

0
Can battery-electric and hydrogen propulsion coexist in future VTOL aircraft? BluJ Aerospace sees complementary roles for both, with batteries powering shorter-range flights and hydrogen...

UST Selects 19 Startups for D3 Startup Challenge 2026 in Bengaluru

0
The programme is designed to identify technologies that address business challenges, assess their practical applications and determine their potential to scale UST, an AI and...

Compcarta Reduces The Cost And Complexity Of End-To-End Chip Design

0
Building a chip should not require assembling an entire design ecosystem. A Noida-based startup is developing a browser-based EDA platform that aims to reduce...

Aquaexchange Brings Monitoring And Automation To Shrimp Farming

0
The startup has developed an AI- and IoT-enabled platform that helps shrimp farmers manage farms, access financing, monitor operations, and connect with markets. The startup...

Drone-Like Aircraft For Logistics From BluJ Aerospace

0
Hyderabad-based BluJ Aerospace is developing indigenous electric and hydrogen-powered vertical take-off and landing (VTOL) aircraft for remote cargo transport. BluJ Aerospace, a Hyderabad-based aerospace startup...