NEW DELHI: In a move that could bring satellite communication services closer to commercial launch in India, the Digital Communications Commission (DCC), the top decision-making body for telecommunications and digital policies, has approved a spectrum usage charge (SUC) of 5% of adjusted gross revenue (AGR) for satellite communication services.
The charge will be lower at 4% of AGR for operators providing services in rural and remote areas.
With the decision, the government can now move ahead with spectrum assignment for satellite communication companies such as Starlink, Eutelsat OneWeb and Amazon Leo to launch commercial services in India.
The Department of Telecommunications (DoT) will now move the proposal through the Inter-Ministerial Committee (IMC) and subsequently seek Cabinet approval.
The DCC has also approved spectrum assignment for five years, with an option for a two-year extension.
Trai had originally recommended a 4% of AGR spectrum usage charge, along with an additional Rs 500 per urban subscriber per year for non-geostationary satellite orbit (NGSO)-based satellite services. Rural and remote subscribers would have been exempt from the additional levy.
However, the DoT rejected the per-subscriber charge, citing difficulties in distinguishing between rural and urban users. It also rejected Trai's proposal to subsidise fixed satellite terminals for targeted rural and remote subscribers through the Digital Bharat Nidhi (DBN), saying the existing framework does not provide for such a subsidy.
The decision comes after months of discussions between the DoT and Trai over the pricing of satellite spectrum.
GMPCS licence holders, including Starlink, Eutelsat OneWeb and Jio Satellite Communications, will still need to meet security requirements before launching services. Amazon Leo is still awaiting its GMPCS licence.
Final approvals for companies holding Global Mobile Personal Communication by Satellite (GMPCS) licences remain contingent on security demonstrations and the resolution of concerns raised by the Ministry of Home Affairs (MHA) and other agencies.