The Telecom Regulatory Authority of India (TRAI) suggests charging around 4 percent of the Adjusted Gross Revenue (AGR) for spectrum allocation under the new satcom regime in its latest recommendation. In addition to this, the operators operating in the urban areas will have to shell out Rs 500 per subscriber annually. 

The proposal will first go to the Digital Communications Commission — the telecom department’s top decision-making body — before being forwarded to the Cabinet for approval, clearing the path for the commercial launch of next-gen satellite internet services in the world’s second-largest telecom market. Current players in the domain include Airtel’s Eutelat OneWeb, Elon Musk’s Starlink, Amazon’s Kuiper, Reliance Jio-SES, Globalstar, and others.

Complete Recommendation 

The Telecom Regulatory Authority of India (TRAI) has proposed a new fee structure for satellite operators, requiring both geostationary (GSO) and non-geostationary (NGSO) players to pay 4% of their adjusted gross revenue (AGR), along with a minimum annual charge of ₹3,500 per MHz of spectrum. Satcom companies providing services in urban areas would be charged ₹500 per subscriber annually, while no such fee would apply for rural users, TRAI Chairman AK Lahoti announced at a press briefing.

Additionally, operators offering commercial services would be subject to an 8% license fee, he adds. 

Term for license

TRAI has recommended that satellite spectrum in the Ku, Ka, Q/V, L, S, and C bands be allocated for a five-year term, with a possible two-year extension, as the commercial viability of the technology becomes clearer shortly. There will be no upfront fee or allocation price for this spectrum, TRAI Chairman AK Lahoti confirms.

Complementary Technology 

Suggesting against what the Indian telcos have been suggesting about the potential competition from satcom companies in the traditional services, Mr. Lahoti says that satcom can only be a complementary technology for any given region and not a sole technology. 

He says, ” It’s not factually correct that satcom services are competing with terrestrial services because there is a huge difference between the capacity of the terrestrial network and the satellite network.” 

The recommendations follow eight months of consultations, during which India’s telecom operators and satcom companies clashed over satellite spectrum pricing and allocation methods. The standoff eventually gave way to an unexpected rapprochement, leading to marketing tie-ups between major telcos like Reliance Jio and Bharti Airtel with Starlink in recent months.