The Telecom Regulatory Authority of India (Trai) has held its ground on spectrum fees, arguing that commercial satellite communication (satcom) service providers already pay annual spectrum charges of 4% of Adjusted Gross Revenue (AGR), along with an additional levy of ₹500 per subscriber in urban areas.
Rural and remote users remain exempt from this additional charge. The regulator’s reconsidered recommendations, issued in response to a DoT back-reference dated November 12, reinforce Trai’s stance that Non-Geostationary Orbit (NGSO) be subject to uniform and non-discriminatory pricing norms.
Suggestions made by DoT
DoT has suggested replacing this model with an annual spectrum charge of 5% (instead of 4%), with a 1% discount if a specified share, such as 5%, of total subscribers are located in border, hilly, or island regions. The debate comes as Elon Musk-led Starlink, Bharti Group-backed Eutelsat OneWeb, and Jio SES await spectrum allocation from the government.
The regulator has also declined to continue the preferential spectrum fee regime available to Bharat Sanchar Nigam Limited’s (BSNL) Global Satellite Phone Service, which currently pays just 1% of AGR. Trai said this dispensation cannot be justified in a market prepared to host multiple mobile satellite service providers, calling the lower rate discriminatory and inconsistent with the framework under the Telecommunications Act, 2023.
Regulator clarifies use of frequency bands
Alongside the pricing discussion, the regulator has clarified which frequency bands satellite operators may use in India. NGSO-based Fixed Satellite Services have been designated to operate in the Ku, Ka, and Q/V bands, while Mobile Satellite Services will utilise the L and S bands for user links, with feeder links permitted in the C, Ku, Ka, and Q/V bands.
Trai noted that these allocations align with the National Frequency Allocation Plan (NFAP), updated periodically by the government to stay consistent with global norms. On the method of spectrum assignment, Trai reiterated its long-standing view that satellite spectrum should continue to be allocated administratively and not auctioned. The regulator has also encouraged a transition to block-based assignments rather than carrier-by-carrier approvals.
Trai said that using Digital Bharat Nidhi (DBN) funds to subsidise NGSO-based satellite user terminals fits squarely within its objectives because satellite systems can immediately deliver broadband in regions where fibre rollouts are unfeasible.
It contradicted with DoT’s claim that DBN cannot be used in this manner, pointing out that the framework already provides for targeted interventions and area-wise schemes.
Where Trai has shown flexibility is on rollout timelines. Satellite Earth Station Gateways should still be commissioned within 12 months of approval, but the regulator is in favour of a 30-day grace period to align with broader telecom authorisation rules. This modification seeks to address DoT’s concerns on implementation consistency.
