Telecom Regulator's Recommendations on Spectrum Charges
The Telecom Regulatory Authority of India (Trai) has reiterated its stance on spectrum charges for satellite communication (satcom) players, suggesting a levy of 4% on adjusted gross revenues (AGR).
Rejection of DoT's Suggestions
- Trai rejected the Department of Telecommunications' (DoT) proposal to set spectrum charges at 5% of AGR with a 1% discount for serving hard-to-connect areas.
- Trai maintained its recommendation of an additional Rs 500 charge per urban customer to address the competitive advantage of non-geostationary orbit players over geostationary orbit satellites.
- Disagreed with DoT on financial aspects, including subsidies for satellite terminals, charges for BSNL, and the formula for spectrum charges and payments.
Procedural Agreements and Geolocation Rules
- Trai agreed with DoT on certain procedural matters but rejected the idea of a 1% discount limited to hard-to-connect areas, emphasizing that many rural households would be excluded otherwise.
- Trai highlighted that geolocation binding rules make it feasible to determine the location of user terminals, thus eliminating implementation challenges.
BSNL and Subsidies
- Rejected DoT's view of continuing to levy 1% of AGR as spectrum charges from BSNL, citing discrimination against other players.
- Stressed the need for subsidies for subscribers in unserved/underserved rural and remote areas, suggesting that the government consider working with third-party implementers for subsidy distribution.
Industry Implications and Future Prospects
Once spectrum pricing is finalized, companies like Starlink, Eutelsat OneWeb, and Jio Satellite can offer services, having already secured regulatory approvals. Amazon Kuiper awaits clearance. India's space economy could potentially reach $44 billion by 2033, accounting for around 8% of the global share, as per IN-SPACe.
