TRAI Releases Service Conditions for Satcoms, Proposes 4% AGR Spectrum Charge

Days after reports suggested that Elon Musk's Starlink has received regulatory approvals to start operations in India, the Telecom Regulatory Authority of India (TRAI) has released its final recommendations on the ‘Terms and Conditions for the Assignment of Spectrum for Certain Satellite-Based Commercial Communication Services’.

As per the recommendations, Satcom operators will have to pay 4% of their Adjusted Gross Revenue (AGR) as spectrum charges, with a minimum annual spectrum fee of Rs 3,500 per MHz.

TRAI specified that companies using GSO-based Fixed Satellite Services (FSS) will pay 4% of AGR, with a mandatory minimum of Rs 3,500 per MHz annually—regardless of revenue.

For NGSO-based FSS providers, the same 4% AGR charge applies. Additionally, they must pay Rs 500 per subscriber per year in urban areas, while users in rural and remote areas are exempt from this extra charge. However, the minimum charge of Rs 3,500 per MHz per year still applies.

For Mobile Satellite Services (MSS) using either GSO or NGSO satellites, the charge is also 4% of AGR, with the same minimum fee.

Spectrum charges must be paid quarterly in advance, within 15 days of the start of each quarter. Minimum annual charges are to be paid both at the time of spectrum assignment and at the start of each year. These payments will be adjusted against the total annual dues, but only up to the minimum charge. NGSO-based FSS providers must also pay the per-subscriber urban charge quarterly, calculated as 125 times the number of urban users from the previous quarter.

To promote connectivity in remote areas, the government may offer subsidies for user terminals used by NGSO-based FSS providers, reducing costs in underserved communities, TRAI said.

Earlier, India decided to opt for administrative assignment of spectrum for Satcom services, diverging from its traditional auction method used for 4G and 5G spectrum allocations. Major telecom players like Reliance Jio and Bharti Airtel had objected to this move, arguing it could give Starlink an unfair advantage. Later, Airtel proposed additional levies if Satcom providers offered services in urban markets.

However, earlier this year, both Jio and Airtel partnered with Starlink to distribute its products in India through their retail outlets and distribution networks.

TRAI had released a consultation paper on spectrum allocation conditions in September 2024, seeking feedback on 21 key issues. The deadlines for comments and counter comments were extended to October 25 and November 1, 2024, respectively, following stakeholder requests. A total of 30 comments and 12 counter comments were received, and an open house discussion was held virtually on 8 November 2024, TRAI said.

TRAI has recommended that NGSO-based FSS use Ku, Ka, and Q/V bands, while GSO/NGSO-based MSS should use L and S bands for user links and C, Ku, Ka, and Q/V bands for feeder links. Spectrum should be assigned for up to five years, extendable by two more years based on market conditions. Terms, including pricing, will remain valid for five years from the government's policy notification, with any revisions thereafter applying to all authorised entities.

To prevent interference, ITU regulations will apply. All authorised users of shared spectrum bands must coordinate in good faith. The government may also develop a spectrum-sharing framework and has proposed spectrum splitting if coordination among satellite systems fails.

Entities must also coordinate on satellite earth station gateways, with potential guidelines on minimum distance between those using the same frequencies. In mobile service-allocated areas, satellite gateways may be allowed in remote regions.

Authorised entities must set up satellite gateways within 12 months of receiving permission. They may also surrender spectrum early, under recommended conditions. Spectrum assignment should be completed within 30 days of application, provided government clearance has been granted.