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Spectrum for satellite-based communication services may be allocated at 4 per cent of Adjusted Gross Revenue, suggested the Telecom Reguatory Authority of India (TRAI) in its recommendations on pricing of spectrum.
The much-awaited final recommendation by the government has suggested spectrum be allocated for five years, with a potential extension of two years. For both Geostationary Orbit (GSO)-based and non-GSO services, TRAI has recommended the 4 per cent levy, subject to a minimum annual spectrum charge of ₹3,500 per MHz.
Additional charges for urban areas
In case of urban areas, it suggested an additional charge of ₹500 per subscriber per annum while rural or remote regions will be exempted.
Per subscriber charges may be paid by NGSO-based fixed-satellite service providers on a quarterly basis equal to 125 times the total number of subscribers in urban areas at the end of the previous quarter. The government may consider providing a subsidy for NGSO-based FSS user terminals to the targeted user segments in rural and remote areas, said TRAI.
Quarterly payment of spectrum
The AGR-based spectrum charges can be paid on an advance quarterly basis, within 15 days of the commencement of the respective quarter. Minimum spectrum charges may be paid in advance at the time of assignment of spectrum and at the beginning of every year.
“The spectrum will be assigned on a shared basis under the condition that every authorised entity and other entities, authorised by the Central government coordinate among themselves in good faith,” said TRAI in its reccommendations.
Satellite stations to be set up
In the frequency range(s) already identified for international mobile telecommunications (IMT), the satellite earth station gateways will be set up at uninhabited or remote locations on case-to-case basis, where there is less likelihood of IMT services to come up. The gateways will be installed and commissioned within 12 months from the time of authorisation.
There should be a defined timeline, not exceeding 30 days from the date of application, within which the frequency spectrum should be assigned to an Authorised Entity for tsatcom services.
Responding to the suggestions, Lt Gen AK Bhatt (Retd), Director General, Indian Space Association (ISpA) said, “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.”
Published on May 9, 2025
