Source: The Economic Times
The Telecom Regulatory Authority of India (TRAI) has recommended charging the use of satellite spectrum at 4% of Adjusted Gross Revenue (AGR), given for services based on both Geostationary Satellite Orbit (GSO) and Non-Geostationary Satellite Orbit (NGSO) under a five-year spectrum assignment. This is a positive step towards simplifying regulations and encouraging investment in India’s infant satellite communications (satcom) sector.
Main Suggestions
TRAI’s recent recommendations, made to the Department of Telecommunications (DoT), involve both Fixed-Satellite Services (FSS) and Mobile Satellite Services (MSS). TRAI recommends the following:
- 4% AGR-based spectrum charge: will be applicable to operators with GSO and NGSO satellites.
- 5-year spectrum assignment: in recognition of the rapidly changing nature of the satcom industry and the short working life of LEO (low earth orbit) satellites.
- Minimum annual spectrum charges: ₹3500 per MHz will be charged for all satellite-based services.
- NGSO Premise Subscriber Fee: ₹500 per subscriber per annum in urban space, exempting rural users.
“Overall, spectrum charges do not need to be any higher than the administrative costs required to cover the allocation of spectrum. It will also facilitate investment and innovation,” Trai has said in its recommendations.
Arguing that satellite communication (satcom) is still in its early stages and that its business prospects will take a few years to fully develop, especially considering that low Earth orbit (LEO) satellites have a lifespan of only around five years, Trai said it has recommended the government assign spectrum for 5 years.
Industry Influence
This action is perceived as a significant enabler for satellite service providers in India. Operators such as Airtel-backed Eutelsat OneWeb and Jio Satellite Communications currently hold GMPCS (Global Mobile Personal Dynamic Communication by Satellite) licenses. However, Starlink is expected to be in the Indian market very soon, led by Elon Musk.
According to TRAI, AGR-based spectrum charging is the existing practice for commercial VSAT service providers and BSNL, Trai officials said. The goal is to ease compliance burden, reduce administrative burden on the providers, and promote innovation by ensuring spectrum pricing reflects only the costs associated with allocation.
Responding to the concerns expressed by terrestrial operators regarding a potential level-playing-field gap with new satellite entrants, TRAI explained M S S is fundamentally different and complementary, not competitive, with mobile networks. ‘There is no substantive case of level playing field between M S S and mobile networks,’ Trai Chairman Anil Kumar Lahoti said Friday.
Spectrum Bands and Coordination
TRAI also suggested making available higher frequency bands, for example, C, Ku, Ka, and Q/V, on a shared basis. Each licensee would need to coordinate reasonably with other licensees to reduce interference and use the spectrum efficiently.
Looking Ahead
With global competitors like Starlink and Amazon’s Project Kuiper in the Indian space, TRAI’s recommendations are meant to stimulate rapid satcom growth. TRAI expects that this framework will enable digital inclusion in rural and unserved areas.
