The Telecom Regulatory Authority of India (TRAI) has issued new recommendations for the ‘terms and conditions for the assignment of spectrum for certain satellite-based commercial communication services’. The authority has proposed a five-year licensing period for commercial satellite communication services, with the possibility of a two-year extension based on market conditions.
Under the proposed framework, operators utilizing geostationary and mobile satellite services would be subject to a 4% charge on their adjusted gross revenue, with a minimum annual spectrum fee of Rs 3,500 per MHz. For non-geostationary satellite services, an additional charge of Rs 500 per urban subscriber per year is recommended, while rural and remote areas would be exempted from this fee.
“Given the relatively higher purchasing power of subscribers in urban areas compared to rural areas and hence the high demand/consumption of data in these regions, it is possible that NGSO-based FSS providers may focus more on urban areas… imposing a per subscriber charge of Rs 500 per annum in urban areas, while exempting rural and remote areas, may provide an incentive for operators to expand their services into rural and remote areas and if required this per subscriber charge may be reviewed in future,” TRAI said.
These recommendations come at a time when global players like Elon Musk’s Starlink are preparing to enter the Indian market. Starlink has previously advocated for a 20-year spectrum allocation to support its long-term business plans, emphasizing the need for affordable pricing.
The regulatory framework also includes provisions for spectrum sharing and leasing, encouraging efficient use of resources and fostering innovation in the satellite communication sector. By implementing a tiered fee structure and flexible licensing terms, TRAI seeks to balance the interests of investors with the goal of expanding broadband access across the country.
“As the spectrum is being charged on a percentage of AGR basis, the authority is of the view that a minimum amount of spectrum charge may be levied on satellite service providers. This minimum spectrum charge would ensure the operators avail optimal spectrum bandwidth for providing their services. It would also ensure that certain niche service providers, who may have a tendency to avail additional spectrum, would be restricted.”
The authority further added that this would also nudge the service providers who avail spectrum use rights to expedite rolling out their services. This will also help in minimizing the coordination requirements as operators will obtain only the required spectrum for providing services.
Read more:Starlink set to launch in India following regulatory clearance
“The authority is of the view that the minimum spectrum charges should not be set too high at this stage, which may act as a barrier to entry for the new players in satellite segment,” TRAI added.
In early November last year, TRAI concluded an open-house discussion on the terms and conditions for the allocation of spectrum to satellite-based commercial communication services.
Telecom industry giants such as Reliance Jio and Bharti Airtel have pushed for satellite spectrum to be allocated via auctions, a move they argue would ensure nationwide mobility services. Conversely, satellite communication firms, including major players like Elon Musk’s Starlink, Amazon’s Project Kuiper, and other global companies, have lobbied for an administrative allocation of the spectrum.