New Regulatory Framework for Satellite Communications

In a significant move, the Telecom Regulatory Authority of India (Trai) has recommended a 4% charge on the adjusted gross revenue (AGR) for satellite communication operators. This includes major players such as Elon Musk's Starlink, Bharti Enterprises-backed OneWeb, and Jio-SES. The spectrum assignment is proposed for a five-year period, extendable by another two years.

Encouraging Rural Connectivity

Trai has also introduced charges for urban customer acquisitions while recommending subsidies for installations in rural and remote areas, termed as 'dark zones'. This initiative aims to accelerate network enhancement in underserved regions.

Spectrum Allocation Without Auctions

The decision follows the government's move to allocate spectrum to satcom providers administratively, bypassing the auction route mandatory for terrestrial service providers like Reliance Jio, Bharti Airtel, and Vodafone Idea. Trai refrained from setting a specific price for airwaves, a point of contention among domestic providers seeking fair competition.

Complementary, Not Competing Services

Anil Kumar Lahoti, Trai chairman, emphasized that satellite services would complement rather than compete with terrestrial networks. To prevent spectrum squatting, a minimum charge of Rs 3,500 per MHz has been fixed, alongside an additional annual charge of Rs 500 per urban subscriber to promote rural connectivity.