TRAI Rules Out Satcom Spectrum Review

New Delhi, Jun 4 (PTI) Telecom Regulatory Authority of India (TRAI) on Wednesday categorically ruled out any review of recommendations on satcom spectrum at this stage, based on industry body COAI's claims.

Sources in TRAI told PTI that the regulator has already given its recommendations to the government "after following the due consultation process exhaustively and transparently".

All stakeholders were given adequate opportunity to represent their viewpoint during the consultation process, they said.

There is no question of review of the recommendations at this stage based on reactions of the Cellular Operators' Association of India (COAI), TRAI sources said.

The comments assume significance as COAI - whose members include Reliance Jio and Airtel - has approached the telecom department to raise concerns over TRAI recommendations on the satcom spectrum, claiming that "incorrect assumptions" have led to unjustifiably low spectrum charges for satellite services relative to terrestrial networks.

In a letter dated May 29, COAI claimed that TRAI's recommendations are based on incorrect assumptions and that their implementation will hit the sustainability of terrestrial services, which form the foundation of India's digital infrastructure.

COAI has urged the Department of Telecom (DoT) to form a committee to "undertake a comprehensive review of the recommendations in their entirety, ensuring the process is guided by principles of fairness, transparency, and equity and also give an opportunity to TSPs (telcos) to share their views regarding the same".

The industry body argued that the recommendations provide a regulatory advantage to commercial Non-Geostationary Orbit (NGSO) satellites against terrestrial broadband service providers and, if accepted by the DoT in their present form, will undermine competition and create a non-level playing field.

COAI said that TRAI's recommendations do not appear to address the most fundamental and contentious issue -- the lack of a level-playing field between terrestrial service providers and satellite operators serving the same market.

"The said recommendations are based on incorrect assumptions and implementation of these recommendations will impact the sustainability of terrestrial services that form the foundation of India's digital infrastructure," the association had said.

The telecom regulator last month suggested that satellite communication companies like Starlink pay four per cent of their adjusted gross revenue (AGR) as spectrum charges to the government. Operators offering satellite-based broadband internet services in urban areas would have to shell out an additional Rs 500 per subscriber annually.

No additional levy would be applicable for services in rural areas.

COAI also argued that the recommendation of a spectrum charge at four per cent of AGR is without justification.

"It is well known and TRAI would surely be fully aware that with the advent of next-generation NGSO broadband services -- including low Earth orbit (LEO) and medium Earth orbit (MEO) constellations -- satellite services are now capable of directly substituting and competing with terrestrial fixed and mobile broadband networks," COAI said.