The Telecom Regulatory Authority of India (TRAI) has turned down the Department of Telecommunications’ (DoT) proposal to continue charging a concessional spectrum usage fee of 1% of adjusted gross revenue (AGR) for Bharat Sanchar Nigam Ltd’s ( BSNL) satellite-based services.
Instead, the regulator has recommended a uniform spectrum charge of 4% of AGR for all satellite service providers, regardless of ownership. By rejecting preferential pricing for the state-owned operator, TRAI has underscored that satellite communications in India should be governed by technology- and ownership-neutral principles—an approach that gains significance as the country readies itself for a more competitive, multi-player satellite communications market.
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TRAI noted that DoT’s proposal would lead to unequal treatment by allowing BSNL to pay a lower levy even as multiple mobile satellite services (MSS) providers operate in the same space. The regulator also dismissed the argument that BSNL’s services warrant lower charges due to their strategic importance, pointing out that other telecom service providers similarly support strategic communications alongside commercial offerings.
In its response, TRAI said there is currently no framework that allows for differential spectrum charges based on strategic usage across services or providers. Granting such an exemption to a single operator, it argued, would therefore be discriminatory.
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“DoT’s proposal provides for lesser spectrum charges to a specific service provider, i.e. BSNL, which would be discriminatory in a scenario where multiple service providers are offering MSS,” the regulator said. “The ground cited—provision of services for strategic purposes—applies to other telecom service providers as well, who support strategic use in addition to commercial operations.” With this stance, TRAI has narrowed the scope for ad hoc exemptions and reinforced a rules-based regulatory approach, signalling a more level playing field as satellite-led telecom services expand in India.
