NEW DELHI: India has paved the way for satellite broadband services to be provided by players like Elon Musk’s Starlink, Sunil Bharti-backed Eutelsat OneWeb, and Mukesh Ambani’s Reliance Jio, with Digital Communications Commission (DCC) approving telecom regulator Trai’s recommendations on satellite spectrum allocation. DCC is the apex body for telecom and digital communication policies.Satellite service providers are likely to receive spectrum for five years and they will be required to pay a spectrum usage charge (SUC) of 5% of adjusted gross revenue (AGR), said officials. Companies providing satellite connectivity to rural and remote areas are likely to pay a lower SUC.
Trai wants satellite internet services to be affordable
Starlink, Eutelsat OneWeb and Reliance Jio were awaiting clarity on spectrum allocation to begin commercial satellite broadband services. Musk’s Starlink, for instance, has already secured a licence to offer satellite broadband services in India and established ground infrastructure to meet regulatory requirements.“Starlink remains in active and productive discussions with the govt of India contrary to misleading stories based upon unsubstantiated claims from anonymous sources. We have worked with the govt through all of the required regulatory and compliance processes in a transparent and responsible manner,” Lauren Dreyer, Starlink business operations VP, said in a social media post about three months ago.Last May Trai issued recommendations on assigning spectrum for certain satellite-based commercial communication services. “Authority recommends that the annual minimum spectrum charges for GSO/NGSO-based fixed satellite services and GSO/NGSO-based mobile satellite services should be Rs 3,500 per MHz… annual spectrum charges should be calculated (for) GSO-based fixed satellite services and GSO/NGSO-based mobile satellite services at a maximum (4% of AGR, annual minimum spectrum charge),” it recommended.The regulator is keen that this key connectivity comes at an affordable price for users. “The authority is of the view that high minimum spectrum charges could adversely impact smaller satellite operators and those utilising spectrum for essential services such as defence, emergency communication, public utilities, and connectivity in remote areas. Excessive charges may deter spectrum adoption by these operators, potentially hindering market entry, investment in critical sectors, and the expansion of services in underserved regions. Given the nature of satellite communication services, there is often a time lag between the assignment of spectrum and the commencement of operations,” Trai said.
