Trai stands firm on satcom fees, rejects DoT's revisions

The Telecom Regulatory Authority of India (Trai) on Monday rejected the government’s view that satellite communication (satcom) operators should be charged a 5 per cent annual spectrum fee instead of the 4 per cent it had recommended, and also declined to waive a Rs 500 per-connection fee for urban areas.

In its response to the Department of Telecommunications (DoT), Trai reiterated its original recommendations, stating that adopting the DoT’s position could disadvantage potential users in rural regions by limiting access to satellite-based services.

Trai disagreed with the DoT’s proposal, submitted as a back reference to Trai’s earlier recommendations, to increase the annual spectrum fee for satcom operators to 5 per cent. It also maintained its stand on retaining the Rs 500 per-connection charge for urban users, which the DoT had suggested waiving.

“The Authority does not concur with the DoT’s proposal to charge spectrum at the rate of 5 per cent of AGR (adjusted gross revenue) with conditional discounts for providing connectivity to hard-to-connect areas such as border regions, hills and islands,” Trai said.

The DoT had asked Trai to reconsider the fee structure, suggesting a 1 per cent rebate if a company enrolled customers from hilly or border areas in a given year. It had also proposed waiving the Rs 500 urban user fee if Trai’s rural-connectivity target was achieved.

Trai restated its recommendations but added that the government could adopt other measures to promote the use of fixed satellite services (FSS) to accelerate broadband expansion in remote regions, with an emphasis on ensuring affordability of user terminals.

The regulator’s position affects firms such as Starlink, Eutelsat OneWeb (backed by the Bharti Group) and Jio SES, all of which are awaiting clarity on satellite spectrum allocation and pricing before commencing services in India.

Earlier this week, Starlink, owned by Elon Musk’s SpaceX, disclosed pricing for its residential service in India. As the company prepares for a broader market entry, it has listed a monthly subscription fee of Rs 8,600 on its India website, with hardware costing Rs 34,000. The package includes unlimited data and a 30-day trial period to allow prospective users to test the service.