Telecom Regulator TRAI Sets Spectrum Pricing for Satcoms, Impacting Market Dynamics
TRAI has proposed a 4% spectrum charge on adjusted gross revenue for satcom companies like Starlink, arguing satellite services are complementary to terrestrial ones. This move, however, may disturb market dynamics, especially affecting terrestrial players like Reliance Jio and Bharti Airtel. Satcom services face a distinct capacity and cost disparity compared to traditional networks.
- Country:
- India
On Friday, TRAI, the telecom regulator, firmly addressed concerns that its proposal to fix spectrum levy at 4% for satellite communication companies, including Starlink, would disrupt the market and harm traditional operators such as Reliance Jio and Bharti Airtel.
TRAI Chairman Anil Kumar Lahoti refuted the assertion that satellite services are competing with terrestrial ones. According to him, the differences in service capacity are stark, with a ratio of up to 250:1 between terrestrial and satellite networks. He emphasized that the services should be viewed as complementary rather than directly competitive.
In its guidance to the Department of Telecommunications, TRAI recommended that satellite-based internet providers in urban locales face additional charges, while rural services remain exempt. Lahoti also clarified that the spectrum and operating license fees are distinct and dictated by separate regulations. TRAI's role, he stated, is strictly aligned with government references, sidestepping any influence from bilateral trade discussions.
(With inputs from agencies.)
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- TRAI
- telecom
- spectrum
- satellite
- Starlink
- market
- dynamics
- Reliance Jio
- Bharti Airtel
- competition
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