Government Sets 1% SUC for BSNL's Satellite-based Phone Services

The DoT has fixed 1% spectrum usage charge for satellite-based services provided by BSNL. As of now, the public sector telco provides satellite phone services to government and shipping companies. The telco also provides the services to all others who have approval from the Home Ministry.

BSNL Gets Fixed SUC for Satellite Telephony

In an office memorandum, dated 28th June, DoT said that the state-run telco will pay spectrum charges as a percentage of its AGR. This will also cover handsets and gateway spectrum charges.

The memorandum read, "the applicable charges shall be 1% of the AGR of BSNL's satellite based services under 'sui-generis' category. The spectrum charges shall be applicable from the date of inception of GSPS (global satellite phone services)".

The difference between regular and satellite service providers is that the latter is highly regulated. A user has to generally take an approval from the home ministry to use the satellite phone services. That has therefore warranted a differentiation in the way these companies pay spectrum usage charges. For now, telcos like Jio, Airtel and Vi pay around 3-5% of AGR as spectrum usage charges.

Interestingly, the Public Sector telco is not the only telco which provides satellite phone services in India. The memorandum said that the DoT will also take into account handset sales in AGR. It read, "excess payment, if any, made by BSNL with regard to this service will be adjusted against the other SUC dues payable by BSNL to DoT".