New Delhi, Nov. 25 -- The government 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 Rs.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 the Di...