Govt rejects Trai's proposal for satellite internet subsidy

DoT says ₹1.7 tn digital infra commitments leave no room for remote area satcom sops

- Jatin Grover

No subsidy means either users will have to bear the cost of satellite terminals, or the companies will have to absorb the costs.

The government has rejected the telecom regulator's proposal to subsidize satellite internet services in rural and remote areas because of little fiscal room, given the commitments for other digital infrastructure programmes, according to three officials aware of the matter.

The government's ₹1.73 trillion commitment to bridge the country’s digital divide—including the revamped BharatNet programme and 4G connectivity for villages—has left little room in the Digital Bharat Nidhi (DBN) fund, the officials said, speaking on the condition of anonymity.

Other reasons include the lack of a mechanism for direct benefit transfers (DBT) from the fund and potential overlap with existing initiatives already covered under DBN, such as the 4G saturation project and other targeted schemes aimed at expanding mobile connectivity in villages, they said.