The government will administratively allocate spectrum to satellite communication providers such as Starlink, Eutelsat Oneweb, and Jio Satellite Communications for five years, which can be extended for another two years.
According to the recommendation made by the Telecom Regulatory Authority of India (TRAI) on Friday, the companies will be charged 4% adjusted gross revenue (AGR) for both non-geostationary satellite orbit (NGSO) and geostationary satellite orbit (GSO) based fixed-satellite service (FSS) and mobile satellite service (MSS). The regulatory body released recommendations on 'Terms and Conditions for the Assignment of Spectrum for Certain Satellite-Based Commercial Communication Services’ to the Department of Telecommunication (DoT).
“Satcom services, once available, can play a vital role in taking connectivity to underserved areas where telecom networks are not available. They also play a critical role in disasters, in rescue and relief operations,” said TRAI Chairman Anil Kumar Lahoti. Lahoti also said satellite communication services are complementary to terrestrial networks. There is no ground for competition between the players. “There is no comparison on competition; these are complementary services,” added Lahoti.
Currently, India has two players: Bharti-backed Eutelsat Oneweb and Jio Satellite Communication, which have been granted a Global Mobile Personal Communication by Satellite (GMPCS) licence to operate in India. The DoT issued a letter of intent to Elon Musk-led Starlink on Tuesday, and now the company needs to submit all the required documents within next 21 days, including the licence fee and approval from the Indian National Space Promotion and Authorization Centre (IN-SPACe), the space regulator.
According to the recommendation, the TRAI has proposed that both GSO and NGSO-based FSS operators will be required to pay 4% AGR, with a minimum annual charge of `3,500 per MHz spectrum block. Additionally, operators offering services in urban areas would have to shell out `500 per subscriber annually.
TRAI said spectrum to be assigned in Ku, Ka, and Q/V bands, with IMT bands (e.g., 42.5–43.5 GHz) only allowed in remote/uninhabited areas. The services must be commissioned within 12 months of approval.
The TRAI chairman also said the government may consider the provision of a subsidy for NGSO-based FSS user terminals for rural or remote areas. He argued that the one-time hardware cost ranges between 20,000 to 50,000, given the low purchasing power of consumers in rural area this can become a barrier. In recent months, Jio and Airtel had joined forces to lobby for an auction process to allocate spectrum for satellite services in India. In contrast, Musk advocated for an administrative allocation in line with international norms. Last October, the government sided with Musk's approach, opting for a pre-determined price for the airwaves used to deliver low-latency internet via satellite.