DCC to Seek Clarifications from TRAI on Satcom Spectrum Recommendations

The telecom department's highest decision-making body on Tuesday sought clarification from TRAI on certain aspects of satellite spectrum recommendations, sources said indicating that fee mooted for urban customers and the annual minimum spectrum charges suggested by the regulator could be some of the areas for the back-reference.

The development assumes significance as prominent companies including billionaire Elon Musk-owned Starlink, Bharti-backed Eutelsat OneWeb, and Reliance Jio-SES, are keenly eyeing the high stakes game of broadband beamed from Indian skies.

The Digital Communications Commission (DCC) held a meeting on Tuesday to discuss the recommendations of the Telecom Regulatory Authority of India (TRAI) on satcom spectrum. Sources said the multi-ministry apex decision-making body that looks at significant telecom matters, has decided to seek certain clarifications from TRAI over satcom spectrum recommendations.

Areas where clarification are likely to be sought include the regulator's suggestion on charging additional ₹500 per annum from urban areas, sources said adding that Telecom Department is of the view that implementation challenges, and issues around billing could arise. Further they feel a clear rural-urban demarcation may be difficult.

Another aspect where DoT may seek clarification pertains to TRAI's recommendations of ₹3,500 per MHz Annual Minimum Spectrum Charges for GSO/NGSO-based Fixed Satellite Services and GSO/NGSO-based Mobile Satellite Services.

Sources said given that spectrum is a valuable resource, the amount of ₹3,500 per MHz is less, and would not be an effective safeguard against someone holding and not using spectrum. DoT believes that the Annual Minimum Spectrum Charges should be pegged higher to ensure spectrum doesn't remain utilised.

In May this year, the telecom regulator had released its recommendations on pricing of spectrum for satellite-based internet services, suggesting a levy of 4% of annual revenues as fee on operators like Elon Musk’s Starlink.

Operators offering services in urban areas would have to shell out an additional ₹500 per subscribers annually, while no additional levy would be applicable for services in rural areas, TRAI had said.

The regulator had recommended that satellite broadband spectrum be allotted for five years, which can be extended by another two years. The 4% of adjusted gross revenue (AGR) spectrum charge would be for both geostationary orbit (GSO) and NGSO (non-Geostationary orbit) operators. These would be subject to a minimum annual spectrum charge of ₹3,500 per MHz.

SpaceX, the aerospace company led by the world's richest man Elon Musk, has already tied up with rivals Reliance Jio and Bharti Aitel to bring Starlink’s broadband internet services to India. Both Indian firms will offer Starlink equipment through their network and also support customer installation and activation on devices.

Separately, Eutelsat OneWeb and Jio Satellite Communications have also received licence from the Department of Telecommunications to provide satellite internet services in the country. Amazon’s Kuiper is awaiting DoT's nod, pending some compliances.

Earlier this year, the government issued stringent security norms mandating legal interception of satellite communication services and barred companies from linking connection of users in any form with any terminal or facility located outside the country’s border as well as processing of their data overseas.

The tighter security rules also mandate service providers to indigenise at least 20% of their ground segment of the satellite network within years of their establishment in the country.

The satcom service licence holders will require security clearances for specific gateway and hub locations in India and compliance to monitoring, interception facilities and equipment requirements.