4% of AGR as spectrum charge: Trai paves way for satellite internet

TRAI recommends 4 per cent AGR-based SUC for satcom, Rs 3,500 per MHz fee, no auctions, and exemptions for rural users to promote affordability and competition

Satellite communication operators in India should have to pay 4 per cent of their annual adjusted gross revenue (AGR) as spectrum usage charges (SUC) to offer services in the country, the Telecom Regulatory Authority of India (Trai) recommended on Friday. The authority also proposed that the space spectrum be assigned for five years, extendable by an additional two years. 

The pricing formula has been kept uniform for both non-geostationary satellite orbit (NGSO) and geostationary satellite orbit (GSO) -based fixed-satellite service (FSS) and mobile satellite service (MSS). In addition, Trai has mandated a minimum spectrum charge of ₹3,500 per MHz per