DoT Nears Finalisation of Satellite Spectrum Allocation Rules: Report

The Department of Telecommunications (DoT) is in the final stages of framing rules for the administrative allocation of satellite spectrum, with a draft expected to be released shortly for stakeholder feedback. The upcoming framework, being developed under the new Telecommunications Act, proposes to allocate satellite spectrum on a first-come, first-served (FCFS) basis, ETTelecom reported, citing senior government officials.

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Also Read: TRAI Says Satcom Services Complement and Do Not Compete With Terrestrial Networks

FCFS Model Proposed for Satcom Spectrum

Officials indicated that since satellite spectrum is a shared resource, the FCFS model would not pose competitive concerns, unlike exclusive terrestrial spectrum allocations. However, interference management is expected to be a key operational consideration.

“The licensing and satellite divisions of the DoT are close to finalising the allocation rules. The draft will be soon put out and final rules are expected to be notified in a couple of months,” an official was quoted as saying in the report.

While satellite spectrum was earlier allotted administratively to VSAT and other operators as part of licensing, the new rules will introduce a standalone authorisation regime with clearly defined modalities. Final rules are likely to be notified within the next couple of months.

“Since satellite spectrum is a shared resource, first-come, first-serve policy won’t be a problem as the same spectrum can be utilised by late entrants. But the key issue will be around interference and how best it can be minimised,” said a second official, as mentioned in the report.

Also Read: ISpA Welcomes TRAI’s Satellite Spectrum Pricing Recommendations

TRAI Suggests 4 Percent AGR Pricing

The development follows the Telecom Regulatory Authority of India’s (TRAI) recommendations on pricing, which propose a charge of 4 percent of adjusted gross revenue (AGR) for spectrum usage, with assignments valid for five years. Although the allocation rules do not require Cabinet approval, the proposed pricing mechanism will be vetted at the highest level.