Telecom Regulator Trai Imposes Steeper Spectrum Levy on Satellite Companies

The Telecom Regulatory Authority of India (Trai) has recommended a new spectrum pricing structure affecting satellite communication companies such as Starlink. The proposed 4% levy on adjusted gross revenue (AGR) is higher than previously discussed rates. Operators offering satellite-based broadband in urban areas will additionally incur an annual charge of Rs 500 per subscriber.

In its submission to the Department of Telecommunications (DoT), Trai said there's no need for additional levies in rural areas but suggested subsidies for satcom user terminals in underserved regions. Despite industry concerns about market disruption, Trai Chair Anil Kumar Lahoti insists satellite services won't compete with terrestrial services but will complement them, particularly in rural and remote areas.

Trai's recommendations, including spectrum charge implementations and licensing frameworks, are poised for Cabinet review. These measures intend to facilitate investment and enhance connectivity in hard-to-reach areas, where satellite services will play an essential role in communication infrastructure.

(With inputs from agencies.)