India’s Telecom Regulatory Authority (TRAI) has unveiled pivotal recommendations for satellite communication (satcom) services, setting the stage for the country’s satellite internet landscape. The guidelines propose a 4% Adjusted Gross Revenue (AGR) fee and a five-year spectrum allocation, aiming to balance industry growth with regulatory oversight.
Key Highlights
- Spectrum Allocation: TRAI recommends a five-year spectrum allocation for satcom services, extendable by two years based on market conditions.
- AGR Fee: A 4% AGR fee is proposed for both geostationary (GSO) and non-geostationary (NGSO) satellite services, with a minimum annual charge of ₹3,500 per MHz.
- Urban Subscriber Levy: For NGSO services, an additional ₹500 per urban subscriber annually is recommended, while rural and remote areas are exempted.
Industry Implications
The recommendations are poised to impact major players like Starlink, Eutelsat OneWeb, and Jio Satellite Communications. While companies like Starlink had advocated for a 20-year spectrum allocation to support long-term business models, TRAI’s shorter tenure aims to assess market dynamics and adjust policies accordingly.
The administrative allocation approach, as opposed to auctions, is designed to facilitate quicker deployment of satellite services, especially in underserved regions. Financial Express
Future Outlook
As India prepares for the rollout of satellite-based internet services, these regulatory frameworks are crucial for ensuring equitable access, fostering competition, and promoting technological advancement. The Department of Telecommunications will review TRAI’s recommendations, with final approval pending from the Digital Communications Commission and the Cabinet. Financial Express
