Trai rejects DoT view on hike in satcom annual spectrum charge to 5%

Govt to study the regulator's response before issuing final guidelines

Telecom Regulatory Authority of India (Trai) on Monday rejected the government’s views that a 5 per cent annual spectrum fee, instead of 4 per cent, should be charged from satellite communication (satcom) players, and that a ₹500 per connection charge for urban areas should be waived.

 

In a response to the department of telecommunications (DoT), Trai maintained its stand, sticking to its original recommendations, on grounds that potential users in rural areas would be left behind in accessing satellite connectivity if DoT’s views were adopted.

 

"The Authority does not concur with the DoT's proposal to charge the spectrum at the rate of 5 per cent of AGR (adjusted gross revenue) with conditional discounts for providing connectivity to hard-to-connect areas such as border/hills/islands," Trai said.

 

The DoT had asked Trai — in its reference to the regulator on satcom spectrum allocation methodology and charges — if it could consider a 5 per cent annual spectrum charge, with a provision of 1 per cent discount if 5 per cent customers of the company enrolled in a year were from tough terrains in border and remote hilly areas, besides waiving the ₹500 per customer charge if they meet the target.

 

"...the Authority reiterates its recommendations... However, the government may adopt any additional schemes to take advantage of FSS (fixed satellite services) for faster and economical expansion of broadband services in identified hard-to-connect areas, including but not limited to hills, border areas and islands, particularly addressing affordability of user terminals," Trai said.

 

The recommendations and response from Trai would have a bearing on Elon Musk’s Starlink, Bharti group-backed Eutelsat OneWeb, and Jio SES that are awaiting clarity on the allocation and pricing of satellite spectrum, required for beginning services in India.

 

Trai added in its response that a per-subscriber charge of ₹500 per annum in urban areas may be imposed while rural and remote areas may be exempted, which would provide an incentive for operators to expand their services into rural and remote areas. This would also address the concern of the goal of bridging the digital divide in rural and remote areas without satcom providers prioritising urban areas due to higher purchase power and data consumption. “If required, this per-subscriber charge may be reviewed in future," Trai said.

 

The telecom regulator added that the government could implement additional schemes to leverage fixed satellite services for faster and more economical broadband expansion in hills, border areas, and islands, where user terminals could be made affordable.

 

Trai’s response will now have to be considered by the government to issue final guidelines for satellite communication services in India.