No room for myths: SatCom in India is regulated, not confidential by default

As India ushers in a new era of satellite connectivity, with players like Starlink and OneWeb receiving Global Mobile Personal Communication by Satellite (GMPCS) licenses, the rise of SatCom services has generated much optimism, yet some facets remain misunderstood. Among the most persistent and misguided narratives is the notion that satellite-based communication is inherently confidential, exempt from interception, and operates in a regulatory vacuum.

India’s satellite communications sector is witnessing accelerated growth, driven by global players like Starlink and OneWeb entering the market and domestic demand rising across sectors like remote connectivity, disaster management, and IoT.

This growing relevance has brought SatCom into sharper regulatory focus. These companies are leveraging advanced satellite technologies to provide high-speed internet and connectivity solutions, especially in underserved and remote areas of India. This is particularly crucial given the country's diverse geography, where traditional terrestrial networks often fall short of delivering reliable connectivity.

However, India’s telecom policy does not treat satellite communications as a special class beyond the reach of regulation. In fact, the exact opposite is true. All licensed SatCom providers must adhere to stringent security and interception protocols laid out under the Telecommunication Act, 2023, and the accompanying Telecommunication Rules, 2024. These mandates are unambiguous—communication services, regardless of whether they are terrestrial or satellite-based, must be capable of lawful interception, decryption, and real-time monitoring by designated authorities.

There is no legal cover for any network—space-based or ground-based—that attempts to bypass these obligations. However, it’s important to note the range of services these licenses offer before we understand the impact of it’s implementation in a highly secure environment.

How does SatCom regulation work?

The Unified License (“UL”) issued by the Department of Telecommunications (“DoT”) grants a service provider with the license to offer a range of telecommunication services including satellite-based services in India. A customer can get all types of telecom services from a service provider holding a UL. There are 2 primary services covered under the broad umbrella of SatCom regulations.

· The Department of Telecommunications (DoT) licenses GMPCS services under Chapter XII of the Unified Licence. GMPCS covers mobile services such as voice, messaging, and data, using satellite gateways and network equipment. It also allows satellite-based data connectivity for IoT and aggregator devices. Similarly, Very Small Aperture Terminal (“VSAT”) Closed User Group (“CUG”) Service (“VSAT-CUG”) is provided with the extended scope of data connectivity between various sites scattered within the territorial boundary of India using VSATs. A VSAT licensee may use the same hub station and VSAT (remote station) to provide internet services to subscribers.

Impact of tightened security norms

The DoT has tightened security norms and enabled stricter compliance for offering SatCom services in India under its Instructions. It mandates additional conditions for companies such as blocking websites, collection of metadata, having a local data centre, ensuring provisioning of NavIC-based positioning system and committing to local manufacturing in a phased manner. Starlink and OneWeb, which are foreign entities looking to enter the Indian market, appear to be facing stricter security conditions set by the Department of Telecommunications (DoT), driven by national security concerns related to countries such as China and Pakistan, as well as considerations around emerging technologies.

The focus on security has led to the introduction of stringent norms that mandate additional conditions for companies, including blocking of websites, collection of metadata, setting up a local data centre, ensuring provisioning of the NavIC-based positioning system, and committing to local manufacturing in a phased manner. These developments reflect a broader regulatory tightening, as captured in the new Instructions now incorporated into Chapter XII of the Unified Licence (UL) Agreement, which reinforce national security controls.

Notably, the government has mandated that satellite internet providers must achieve at least 20% indigenization of their ground infrastructure within five years of launching commercial operations—a move aimed at reducing dependence on foreign technology and boosting domestic manufacturing in the satellite communications sector.

What is the legal process for interception of Satellite communications?

The detailed legal process for interception is laid down in Rule 3 which provides for the Interception of messages or classes of messages by authorized agencies. By this power, the Central Government may issue an interception order specifying one or more authorised agencies to intercept or receive any message or class of messages, for the reasons of the “occurrence of any public emergency or in the interest of public safety” as specified under Section 20(2) of the Act. Interception orders can be issued by the competent authority or an authorized Joint Secretary-level officer in urgent cases.

The impact on the ground will be felt mostly on foreign GMPCS service providers such as Starlink, OneWeb and the like, that are looking to enter the Indian market for the provision of SatCom services. Additionally, the foreign firms tying with the existing Indian licensees is likely to entail additional compliance burden for the partnering service providers to ensure compliance by the satellite service providers. The restrictions requiring GMPCS licensees to implement service restrictions/ denial to any individual during hostilities or otherwise if the law enforcement authorities require, will mean that the service providers are treading on a tight rope with increased consumer costs which turns them away and where the authorities have wide powers which if not exercised cautiously may lead to loss of reputation and trust in the service provider.

Through SatCom, you are able to connect the last mile of customers that are not able to be reached through traditional networks or through optical fibre cable or broadband, fixed or mobile.

Having said that, it may be noted that getting security clearance for the gateway hub location within Indian territory will be time consuming requiring additional initial investment from the companies and is likely to lead to excessive regulatory oversight with additional compliance requirements such as reporting the user terminal mobility.

The writer is Partner at JSA Advocates & Solicitors. Views expressed by the expert are his own.