Why Is BSNL’s Satellite Phone More Expensive Than Smartphones? Here’s the Reason

Here's why BSNL’s Rs 1.34 lakh satellite phone costs more than smartphones and how satellite communication, pricing and DoT rules differ.

By Indrani Priyadarshini

on July 13, 2026

BSNL has unveiled a satellite phone worth Rs 1,34,166, which is costlier than the iPhone 17 Pro. One might ask why a satellite phone is more expensive than a smartphone. After all, modern smartphones offer powerful cameras, advanced processors, AI features, and even limited satellite connectivity for emergencies.

So why would anyone choose a device that looks more like an old feature phone and costs even more?

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What the Device is designed to Do

The BSNL satellite phone is not meant to compete with premium smartphones. Instead, it is a specialised communication device built for people who work in places where conventional mobile networks do not exist. Whether it’s a disaster-hit region, the middle of the ocean, remote mountains or mining sites, the phone is designed to keep users connected when regular cellular networks fail.

The handset is part of BSNL’s Global Satellite Phone Service (GSPS), which enables voice calls and SMS by connecting directly to communication satellites instead of nearby mobile towers. This allows users to stay connected even in areas with no cellular coverage, making it an important tool for mission-critical communication.

According to BSNL, the satellite phone is intended for defence personnel, disaster response agencies, maritime operators, mining companies, remote industrial projects, pilgrims travelling through isolated regions, and adventure travellers. It can also play a crucial role during natural disasters or emergencies where terrestrial telecom infrastructure has been damaged or is completely unavailable.

How Does it Work?

Unlike a smartphone, a satellite phone requires specialised hardware capable of communicating directly with satellites operated by global satellite service providers such as Inmarsat. These devices include dedicated antennas, advanced radio components and satellite communication technology that are significantly more expensive than the hardware found in regular smartphones. Satellite phones are also manufactured in much smaller volumes, resulting in higher production costs compared to mass-market smartphones.

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The purchase price is only one part of the overall cost. Satellite communication services are considerably more expensive than standard mobile networks because they rely on satellite infrastructure rather than terrestrial telecom towers. As a result, users must also subscribe to dedicated satellite service plans.

BSNL’s Satellite Communication

Although the handset has recently attracted attention, BSNL’s satellite communication service is not new. The company has been offering its Global Satellite Phone Service (GSPS) to government organisations, enterprises and eligible users since January 2018 under guidelines issued by the Department of Telecommunications (DoT). The service supports secure voice calls and SMS through satellite networks.

The government has also notified tariff plans for the services. Commercial subscribers can choose monthly or annual prepaid and post-paid plans, with monthly commercial plans starting at Rs 5,835, while government users can access plans beginning at Rs 3,500. These plans include a limited amount of free talk time, after which additional charges apply for voice calls and SMS.

Available for Everyone?

The device is also not freely available to everyone. Satellite phones remain tightly regulated in India because of national security considerations. Anyone wishing to purchase or use one must obtain prior approval from the Department of Telecommunications (DoT). Using a satellite phone without authorisation can lead to legal action under applicable regulations.

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