TRAI outlines spectrum charges and conditions for Satcom services

In a bid to accelerate the rollout of satellite-based internet services in India, the Telecom Regulatory Authority of India (TRAI) on Friday, 9 May, proposed the administrative allocation of spectrum for satellite communication (satcom) services. The regulator has suggested a usage fee comprising a minimum annual charge of Rs 3,500 per MHz spectrum block, along with a levy set at 4% of Adjusted Gross Revenue (AGR). The spectrum allocation would be valid for five years, with the possibility of a two-year extension.

Suggestions from TRAI for Satcom Services

The proposals relate to the assignment of spectrum for both Fixed Satellite Services (FSS) based on Non-Geostationary Satellite Orbit (NGSO) and Mobile Satellite Services (MSS) operating via Geostationary or Non-Geostationary Satellite Orbits (GSO/NGSO). These services include internet, text, voice, and data communications. The move aligns with the Telecommunications Act of 2023 and follows a request from the Department of Telecommunications (DoT) for TRAI's recommendations on the terms and conditions for satellite-based services.

TRAI has recommended that MSS user links operate in the L and S bands, with feeder links in the C, Ku, Ka, and Q/V bands. For NGSO-based FSS, spectrum should be allocated in the Ku, Ka, and Q/V bands. According to the Ministry of Communications, the proposed assignment period for both service types is five years, with a potential extension of up to two additional years depending on market conditions.

Following the issuance of a policy notification, the spectrum assignment terms, including pricing,will come into effect for a five-year period, extendable by two years. The Ministry further stated that any future amendments would be uniformly applied to all authorised providers, including those already in operation.

Suggestions on Spectrum Bands

To minimise interference, TRAI has advised adherence to applicable ITU Radio Regulations (ITU-RR) and good-faith coordination among all entities sharing higher-frequency spectrum bands. In situations where two or more NGSO-based FSS systems are unable to fully coordinate, the regulator has proposed that the government consider spectrum-sharing frameworks. As a last resort, spectrum-splitting provisions, similar to those used by the US Federal Communications Commission (FCC), could be implemented.

TRAI’s proposals also stipulate that satellite earth station gateways operating in IMT-identified bands, such as 42.5–43.5 GHz, be located exclusively in remote or uninhabited areas. Furthermore, mandatory coordination would be required among entities deploying such gateways. Once approved, these gateways must be commissioned within one year.

In terms of spectrum usage charges, a minimum annual fee of Rs 3,500 per MHz will apply, alongside a 4% levy on AGR. While rural and remote areas are exempt from additional charges, an extra Rs 500 per urban subscriber per year is proposed for NGSO-based FSS services in metropolitan areas.

Terms of payment for spectrum charges include:

• Quarterly payments for AGR-based charges must be made at least 15 days prior to the beginning of each quarter.

• Minimum spectrum charges must be paid in advance at the time of assignment and at the start of every year.

• For NGSO-based FSS, per-subscriber charges in urban areas are calculated quarterly as 125 × Nu, where Nu is the total number of urban subscribers.

To promote digital inclusion, TRAI has also recommended that the government consider offering subsidies for NGSO-based user terminals, especially in underserved and remote regions.

Lt Gen AK Bhatt (Retd), Director General of the Indian Space Association (ISpA), stated, "We welcome TRAI for its forward-looking approach and clarity in the ongoing spectrum assignment process for satellite-based communication services. The administrative allocation of satellite spectrum enables shared access, fosters competition, and ensures maximum efficiency in spectrum utilisation, objectives that are critical for the growth of India’s satellite ecosystem and for bridging the digital divide. The proposed framework for spectrum charges in the TRAI recommendations balances the need for government revenue with the imperative to keep satellite services affordable and accessible, while ensuring a level playing field. We look forward to continued collaboration with TRAI and all stakeholders to realise the full potential of satellite communications in India. We are confident that these progressive measures will contribute significantly to a digitally inclusive and connected nation."