TRAI rejects lower satcom spectrum fees for BSNL

The Telecom Regulatory Authority of India (TRAI) has overturned a decision by the Department of Telecommunications (DoT) regarding spectrum charges for satellite communications (satcom) services offered by state-run operator Bharat Sanchar Nigam Limited (BSNL). Under the earlier arrangement, BSNL was required to pay spectrum usage charges equivalent to just 1% of its adjusted gross revenue (AGR) for providing satellite-based services in India.

The DoT had recommended that this pricing structure continue. However, TRAI has disagreed, stating that such an arrangement is not consistent with established regulatory principles. According to TRAI, BSNL should be subject to the same spectrum usage charges as other service providers, which are set at 4% of AGR. This change, the regulator said, is necessary to ensure a level playing field across the sector.

In its latest response to the DoT’s back-reference on spectrum assignment for satellite communication services, TRAI noted that there is currently no framework for charging lower spectrum fees to specific service providers or services on strategic or preferential grounds. The regulator added that allowing differential spectrum charges in this manner would be discriminatory and contrary to the principle of non-discriminatory access to spectrum.

Until now, BSNL has been the only operator offering satellite-based services through an Indian gateway, which allowed the government to justify a lower spectrum charge without distorting competition. However, this rationale weakens as more private players enter the market and are required to pay higher spectrum usage fees for similar services. Maintaining a significantly lower charge for BSNL in such circumstances would place competing operators at a disadvantage.

TRAI’s decision effectively signals the end of preferential spectrum pricing for BSNL’s satellite services. By aligning spectrum charges across operators, the regulator aims to provide regulatory certainty and reinforce a fair and transparent policy environment. This approach is intended to reassure both domestic and international satellite service providers that India remains a competitive and non-discriminatory market, particularly as companies continue to invest heavily in satellite infrastructure and gateway facilities across the country.