Satellite internet players like Starlink, Eutelsat OneWeb and Jio Satellite may face a revised regulatory framework.
The DoT has reportedly asked Trai to raise satellite spectrum fees from 4% to 5% of adjusted gross revenue.
Trai had earlier suggested a 4% AGR-based fee, which the DoT now wants to increase.
Satcom Rules Set for Overhaul: No User Cap, Spectrum Fee May Rise to 5% AGR
The DoT has asked the Telecom Regulatory Authority of India (Trai) to increase satellite spectrum pricing from the current 4% of adjusted gross revenue (AGR) to 5%. Trai had earlier recommended charging companies 4% of their AGR as the spectrum fee
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Satellite internet providers such as Starlink, Eutelsat OneWeb and Jio Satellite may soon have to follow a new set of regulations from the Department of Telecommunications (DoT). The agency responsible for allocating satellite broadband spectrum has reportedly rejected several earlier proposals.
According to the Economic Times (ET), the DoT has asked the Telecom Regulatory Authority of India (Trai) to increase satellite spectrum pricing from the current 4% of adjusted gross revenue (AGR) to 5%. Trai had earlier recommended charging companies 4% of their AGR as the spectrum fee.
The report also says that Trai’s proposal to offer subsidies for satellite terminals in rural areas has been dropped. The regulator had suggested using the Digital Bharat Nidhi (DBN) to reduce terminal costs for price-sensitive rural customers, where equipment prices can go as high as ₹50,000.
In another major reversal, the DoT now wants to scrap its plan to cap the number of customers satcom firms can onboard.
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The report adds that it would have been challenging to monitor how many users each company serves. Instead, the DoT now wants to impose capacity-based limits on satcom operators.
Under this approach, companies can onboard as many customers as their allocated capacity allows. Once they use up that capacity, they must seek fresh approval from the DoT.
The newspaper report also notes that the government may introduce differential spectrum pricing when companies request permission to expand capacity.
A final decision will be taken once applications for capacity enhancement are received. For instance, Starlink, which has approval for 600 Gbps under its Gen 1 constellation, can add users only within that limit unless it seeks additional capacity.
Satcom firms must secure approval from IN-SPACe before submitting requests to the DoT for spectrum allocation. For now, the government will allocate spectrum only for fixed data and internet services, excluding mobile connectivity.
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