Telecom Certification Fees Cut 95%; Dixon & HFCL in Focus; Starlink License Approved

India has implemented sweeping reforms in its telecommunications sector through dramatic certification fee reductions and strategic satellite internet licensing decisions. These developments aim to streamline compliance processes, boost domestic manufacturing, and strengthen the country's position in the global satellite internet market amid ongoing trade tensions with the United States.

Dramatic 95% Certification Fee Reduction

As per a report by Mint, India has dramatically reduced security certification fees by up to 95% for telecom and technology equipment as part of government efforts to streamline compliance and boost local production. The new fee structure, effective from August 1, 2025, reduces costs from the previous ₹2 lakh to ₹3.5 lakh per product model to just ₹10,000 to ₹50,000 per product model. This significant cost reduction affects more than 50 types of equipment, including routers, smart meters, satellite devices, optical fibre cables, and 5G/WiFi gear.

Major beneficiaries include established companies like Nokia, Ericsson, Cisco, HFCL Ltd, and Dixon Technologies. The certification process requires all telecom and tech products to undergo safety and security testing at government-approved laboratories, with successful testing resulting in government-issued security certificates.

Starlink Receives Unified License for Satellite Internet Services

As per the PTI report, in a major development for satellite internet services, Starlink has been granted a Unified License to launch satellite internet services in India. Union Telecom Minister Jyotiraditya Scindia announced this approval, stating that frameworks for spectrum allocation and gateway establishment are ready, ensuring smooth rollout. This approval positions Elon Musk's satellite internet service to compete directly in India's expanding connectivity market.

Starlink joins other satellite internet players awaiting final approvals, including Eutelsat, OneWeb, backed by the Bharti Group and Jio SES. The competitive landscape in satellite internet services is expected to intensify as these players seek to capture market share in India's vast, underserved rural areas.

Read More: Elon Musk Backed Starlink Gets the Indian Govt's Approval for Satellite Internet!

Impact on Equipment Manufacturers and Technology Companies

The 95% fee reduction supports India's ease of doing business initiatives and significantly reduces the compliance burden on technology firms. Companies like Nokia, Ericsson, and Cisco, which regularly certify multiple product models, will benefit from substantial cost savings. Dixon Technologies, a key player in India's electronics manufacturing ecosystem, is also positioned to gain from reduced certification expenses.

This move aligns with the government's broader strategy to promote local manufacturing under initiatives like Production Linked Incentive schemes and Make in India programs, making domestic production more cost-effective compared to imports.

Ongoing Industry Challenges Despite Positive Reforms

Despite these positive changes, the telecom industry continues to face operational hurdles, including limited testing lab capacity and delays in certification processes. The government's fee reduction addresses cost concerns, but infrastructure capacity remains a bottleneck for faster approvals. Industry stakeholders have called for expanding laboratory networks and streamlining testing procedures to fully realise the benefits of reduced fees.

Strategic Timing Amid US Trade Tensions

These announcements occur during critical trade discussions between India and the United States, with the timing particularly notable as the US recently imposed a 25% tariff on Indian goods along with additional unspecified penalties. The telecom sector reforms demonstrate India's commitment to maintaining technological advancement and business-friendly policies despite external trade pressures.

Satellite Internet Market Competition Intensifies

With Starlink's unified license approval, the satellite internet market in India is set for significant competition. Eutelsat OneWeb, backed by Bharti Group, and Jio SES represent formidable competitors with strong local partnerships and market knowledge. The competitive dynamics will likely benefit consumers through improved services and competitive pricing in underserved areas where traditional broadband infrastructure remains limited.

Conclusion

India's 95% reduction in telecom certification fees from ₹2-3.5 lakh to ₹10,000-50,000 per product model, effective August 1, 2025, combined with Starlink's unified license approval, represents significant progress in telecommunications policy reform.

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