TRAI Satellite Spectrum Pricing: Balancing Affordability & Revenue

New Delhi, May 9 (PTI) Indian Space Association (ISpA) on Friday said TRAI's recommendations on pricing of satellite spectrum balances the need for government revenue with the imperative to keep satellite services affordable and accessible along with a level-playing field.

The industry body lauded the regulator for its "forward-looking approach" and "clarity" in the ongoing spectrum assignment process for satellite-based communication services.

"The proposed framework for spectrum charges in the TRAI recommendations balances the need for government revenue with the imperative to keep satellite services affordable and accessible along with a level-playing field," ISpA said in a statement.

The association said it looks forward to continued collaboration with Telecom Regulatory Authority of India (TRAI) and all stakeholders to realise the full potential of satellite communications in India.

It exuded confidence that these progressive measures will contribute significantly to a digitally inclusive and connected nation.

"We welcome TRAI for its forward-looking approach and clarity in the ongoing spectrum assignment process for satellite-based communication services. The Administrative Allocation of Satellite Spectrum enables shared access, fosters competition, and ensures maximum efficiency in spectrum utilisation-objectives that are critical for the growth of India's satellite ecosystem and for bridging the digital divide," A K Bhatt, Director General, Indian Space Association (ISpA) said.

Telecom regulator TRAI on Friday recommended that satellite communication companies like Starlink pay 4 per cent of their adjusted gross revenue (AGR) as spectrum charges to the government -- a rate steeper than what these firms had been lobbying for.

Operators offering satellite-based broadband internet services in urban areas would have to shell out an additional Rs 500 per subscribers annually, TRAI said in its recommendations to the Department of Telecommunications (DoT). No additional levy would be applicable for services in rural areas.

Besides the spectrum pricing, an 8 per cent licence fee levy would also be applicable for these players, TRAI Chairman Anil Kumar Lahoti said.

The spectrum rates recommended by TRAI is steeper than what satcom companies have been lobbying for. Elon Musk's Starlink and Amazon Inc's subsidiary Kuiper Systems had during consultations with the TRAI urged it to keep spectrum charge below 1 per cent of AGR with no other charge.

The TRAI recommended that satellite broadband spectrum be allotted for five years, which can be extended by another two years.