Trai's plan for ₹500 satcom levy aimed at rural rollout push 'rejected'

The telecom department will reportedly return the proposal to Trai for review, noting that the suggested ₹500 annual levy on urban satcom users is difficult to implement

The telecom department has turned down the Telecom Regulatory Authority of India’s (Trai) proposal to levy an additional ₹500 annually per urban subscriber on satellite communication companies to prioritise rural rollouts, The Economic Times reported on Wednesday.

 

The report, citing an official, said the Department of Telecommunications (DoT) did not understand how a paltry ₹500 would prioritise rural areas for satellite operators. The DoT will send a back reference to the regulator, asking it to reconsider, officials added. 

 

The department has also reportedly dismissed Trai’s suggestion to use the Digital Bharat Nidhi (DBN), earlier the USO fund, to subsidise satellite terminals.

 

Department seeks clarity on recommended figures

 

According to the report, the department has asked for the rationale behind the figures recommended by Trai, although it has accepted the regulator’s pricing for satellite spectrum. The DoT will return the proposal to Trai for a re-examination, it added.

 

Security norms issued for satcom operators

 

The department has reportedly issued stringent security rules mandating legal interception of satellite communication services. Companies have been barred from linking user connections to terminals or facilities located outside India and from processing user data overseas.

 

The rules require service providers to indigenise at least 20 per cent of their ground segment within five years of operations in India. Satcom licensees will need security clearances for specific gateway and hub locations. Like telecom operators, satcom players must also block websites restricted in India. Providers will need to submit an undertaking not to copy or decrypt Indian telecom data outside the country.

 

Spectrum rules pave way for Starlink, OneWeb to launch services

 

-The spectrum allocation rules mark the final stage for Elon Musk-led Starlink, Bharti Group-backed Eutelsat OneWeb and Jio SES to apply for radiowaves and roll out services.

-Rules for satellite spectrum allocation are expected by September, a government official said.

 

Trai recommends administrative allocation

 

Trai has suggested that spectrum be allocated through an administrative process, without auction -- a move that initially faced resistance from Reliance Jio and Bharti Airtel. The regulator reportedly proposed a validity of up to five years for satcom spectrum, with the option for the government to extend it by a further two years, depending on market conditions.