TRAI releases spectrum allocation guidelines and prices for Satcom

New Delhi, May 9: The Telecom Regulatory Authority of India (TRAI) has released its recommendations for satellite-based commercial communication services. It includes the administrative allocation of spectrum for Satcom at a price fixed by the government, which will be reviewed every five years.

For Geostationary Orbit (GSO)-based FSS (fixed satellite service), TRAI recommended a spectrum usage fee of 4 per cent of Adjusted Gross Revenue, subject to a minimum annual spectrum charge of Rs 3,500 per MHz.

A similar fee will apply for non-Geostationary Orbit/Geostationary Orbit (GSO/NGSO)- based mobile satellite service (MSS).

For NGSO-based FSS, spectrum usage charges will be 4 per cent of the Adjusted Gross Revenue plus an additional charge of Rs 500 per subscriber per annum in urban areas. Rural and remote areas will be exempt from this additional charge, subject to a minimum annual spectrum charge of Rs. 3,500 per MHz.

TRAI proposed that these recommendations remain valid for five years from the date the central government notifies the policy regime, further extended by up to two years.

The telecom regulator proposed that the AGR-based spectrum charges should be paid on an advance quarterly basis and be payable within 15 days of the commencement of the respective quarter.

Minimum spectrum charges should be paid in advance at the time of spectrum assignment and at the beginning of every year. The quarterly/annual adjustment of payment dues shall be made with the minimum spectrum charge for the particular year only.

TRAI was requested to provide recommendations on the terms and conditions of spectrum assignment, including spectrum pricing, while accounting for a level playing field with terrestrial access services for satellite-based communication services.

The Recommendations made today have been placed on the TRAI's website.

Recently, Airtel and Jio have partnered with Elon Musk's Starlink to bring the latter's high-speed satellite internet services to their customers in India. Satellite telecom in India will help the country provide much-needed services to remote interior places where conventional telecom services tend to be costly.

Starlink's application to provide satellite-based services in India is pending approval with the Department of Telecommunications, Government of India. Its entry into India has gained currency lately, with Donald Trump winning the US presidency for a second term. Elon Musk is a close aide of President Trump.

Reader Comments

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Rajesh K.

Finally some progress! Satellite internet will be a game-changer for rural India. But 4% AGR + additional charges seem quite steep. TRAI should reconsider pricing to make it more affordable for companies to operate in remote areas. #DigitalIndia

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Priya M.

Good move by TRAI. The exemption for rural areas shows the government's commitment to bridging the digital divide. Hope this brings internet to our villages soon. My grandparents in Uttarakhand still struggle with poor connectivity. 🙏

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Amit S.

Why is TRAI linking spectrum charges to AGR? This will just increase costs for end users. Should have gone for fixed pricing model. Also concerned about foreign players like Starlink getting preferential treatment because of political connections.

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Sunita R.

Exciting times for Indian telecom! 🚀 But I hope TRAI ensures proper monitoring of service quality. We've seen how terrestrial networks promise much but deliver little in remote areas. The quarterly payment system seems practical though.

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Vikram J.

The 5+2 year validity period is smart - gives stability to investors. But TRAI must ensure Indian companies get equal opportunity. Jio and Airtel partnering with Starlink is good, but we need our own satellite tech too. ISRO should be more involved in this.

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Neha P.

As someone from Northeast, I welcome this development! Our hilly regions desperately need better connectivity. Hope the implementation is faster than usual government speed. The urban-rural differential pricing makes sense - cities can bear more cost.

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