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Telecom players have reportedly flayed the Telecom Regulatory Authority of India’s (TRAI) recommendation that satellite spectrum be charged at 4% of adjusted gross revenue (AGR).
As per various media reports, the telcos deemed the TRAI’s spectrum pricing move as “unfairly low” and based on “flawed assumptions”.
They argued it would give satellite operators an unfair advantage while undermining the sustainability of traditional terrestrial services.
This comes after TRAI last month issued guidelines stating that satellite operators would pay a spectrum usage fee set at 4% of their AGR, a minimum charge of INR 3,500 per MHz annually, no upfront payment, for a five-year term (extendable by two years).
This applies to both geostationary (GSO) and non-geostationary (NGSO) satellite services, covering key frequency bands used for satellite internet and communications.
A Business Standard report said that the Cellular Operators Association of India (COAI), which comprises Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi) among its members, wrote to DoT Secretary Neeraj Mittal last week, arguing that TRAI’s recommendations fail to ensure a level-playing field between satellite operators and traditional terrestrial service providers.
Telcos argued that setting the satellite spectrum charge at 4% of AGR, lower than what terrestrial operators have historically paid and creates an uneven competitive landscape.
Moreover, unlike terrestrial spectrum, which has often been auctioned at high upfront costs, the telecom body is opposing this as TRAI’s proposal recommends administrative allocation (without auction) for satellite spectrum, further lowering entry barriers for satellite firms.
Wrong Assumptions About Satcom Capacity
COAI claims TRAI has underestimated the potential capacity and market impact of satellite networks, especially those launched by global players like Elon Musk-led Starlink and Project Kuiper.
They further contend that if satellite operators are allowed to offer comparable services at a lower regulatory cost, it could threaten the financial viability of investments made in terrestrial infrastructure.
TRAI Chairman A K Lahoti has dismissed the telcos’ concerns, asserting that satellite and terrestrial networks are fundamentally different, and satcom services are meant to complement, not compete with, traditional networks.
“It’s not factually correct that satcom services are competing with terrestrial services because there is a huge difference between the capacity of the terrestrial network and the satellite network,” an ET report cited Lahoti as saying.
Airtel and Jio Caught In the Middle
While both are key members of COAI and among the top two terrestrial operators in India, Airtel and Jio are also active players in the satcom space.
Both have already been awarded GMPCS service licences from the DoT, while global counterparts like Starlink and Amazon’s Project Kuiper are at different stages of securing regulatory approvals.
Interestingly, despite previously opposing Starlink, the duo has partnered with SpaceX to enhance connectivity, particularly in remote and underserved regions.
Recently, the DoT introduced a fresh set of security guidelines for satcom players for better compliance and national security.
The post Telcos Flay TRAI’s Satellite Spectrum Charges appeared first on Inc42 Media.
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