The Telecom Regulatory Authority of India (TRAI) has struck down the recommendation from DoT (Department of Telecommunications) for the state-run telco's satcom (satellite communications) spectrum charges. At present, BSNL pays only 1% of the adjusted gross revenue (AGR) as spectrum charges for providing satcom services in India. DoT suggested that this should continue this way. But TRAI said that is not how it should work.
TRAI has said that BSNL will also pay 4% of its AGR as the spectrum charges. This would be uniform for all players, creating a fair play ground for every stakeholder in the industry.
Read More - MTNL Gets Approval to Sell Rs 350 Crore Worth Land Asset
TRAI in its latest response to the telecom department’s latest back-reference on spectrum assignment for satellite-based communication services said, "Presently, there is no scheme for differential charging of lesser spectrum charges across services and across service providers for providing services for strategic purposes. On this count also, such a preferential treatment would be discriminatory."
At just 1%, BSNL would have an undue advantage over the other companies providing services. Until now BSNL was the only operator providing satellite-based services via a gateway installed in India. Thus, it was possible for the government to charge 1% only of the AGR as spectrum charges as it was non-discriminatory in nature. But when other players are involved, and they are asked to pay more, then there's no justification for the scenario. The companies investing billions of dollars into building the satellite network and gateways across India won't appreciate a discriminatory approach from the Indian government and the authorities.
Read More - Satcom Launch in India Could Get Further Delayed: Report
Thus, the advantage that BSNL had for satellite communication services on the spectrum charges front will eventually not be there. This is to ensure that the industry has a positive approach towards business in India.
