The Indian Space Association (ISpA) on Friday lauded the Telecom Regulatory Authority of India (TRAI) for its recommendations on satellite spectrum pricing, calling the move a balanced and forward-looking step towards strengthening India’s satellite communications ecosystem.
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TRAI's Framework Earns Praise from ISpA
In its statement, ISpA reportedly said TRAI's proposed framework successfully balances the government's revenue interests with the imperative to keep satellite-based services affordable and accessible. The association added that the recommendations promote a level-playing field and ensure spectrum efficiency—objectives crucial for bridging the digital divide and enabling wider digital inclusion.
"We welcome TRAI for its forward-looking approach and clarity in the ongoing spectrum assignment process for satellite-based communication services. The Administrative Allocation of Satellite Spectrum enables shared access, fosters competition, and ensures maximum efficiency in spectrum utilisation-objectives that are critical for the growth of India's satellite ecosystem and for bridging the digital divide," said A K Bhatt, Director General, Indian Space Association (ISpA), according to a PTI report.
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Spectrum Usage Charges
In its recommendations to the Department of Telecommunications (DoT), TRAI suggested that satellite communication companies pay 4 percent of their adjusted gross revenue (AGR) as spectrum usage charges. The figure is higher than what global players such as Starlink and Amazon's Kuiper Systems had advocated for during consultations, where they urged for a charge below 1 percent AGR with no additional fees.
Operators providing satellite-based internet in urban areas would also be required to pay an additional Rs 500 per subscriber annually. However, no such levy will be imposed on services delivered in rural regions.
Besides the spectrum pricing, an 8 percent licence fee levy would also be applicable for these players, TRAI Chairman Anil Kumar Lahoti was quoted as saying in the report.
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Administrative Allocation Model Backed
The TRAI further recommended that satellite spectrum be administratively allocated for an initial term of five years, extendable by two more years. The administrative allocation model—rather than auction—enables shared access, fosters competition, and aligns with international best practices, according to ISpA.
ISpA reaffirmed its commitment to continued collaboration with TRAI and other stakeholders to unlock the full potential of satellite communications in India.
