The Telecom Regulatory Authority of India (TRAI) on Friday, May 9, recommended the administrative allocation of spectrum for satellite communication (satcom) services, a move aimed at accelerating the rollout of satellite-based internet services in India. The regulator has proposed a usage fee set at 4 percent of Adjusted Gross Revenue (AGR), with a minimum annual charge of Rs 3,500 per MHz spectrum block. The allocation would be valid for five years and may be extended by an additional two years.
The recommendations pertain to spectrum assignment for both Non-Geostationary Satellite Orbit (NGSO)-based Fixed Satellite Services (FSS) and Geostationary/Non-Geostationary Orbit (GSO/NGSO)-based Mobile Satellite Services (MSS), which provide data, voice, text, and internet services. The move is in line with the Department of Telecommunications’ (DoT) request for TRAI’s input on terms and conditions for satellite-based services, as outlined under the Telecommunications Act, 2023.
Consultation Process
According to the Ministry of Communications, TRAI’s recommendations follow an extensive consultation process, which included a consultation paper released in September 2024, a period for stakeholder comments, and an open house discussion held in November 2024. A total of 30 stakeholders submitted comments, with 12 offering counter-comments, contributing to the final recommendations.
Spectrum Bands for Satcom Services
TRAI has proposed that NGSO-based FSS be assigned spectrum in the Ku, Ka, and Q/V bands, while MSS user links should operate in the L and S bands, with feeder links in the C, Ku, Ka, and Q/V bands. The assignment duration for both services is recommended to be up to five years, with a possible extension of two additional years, subject to market conditions, the Ministry of Communications said.
The spectrum assignment terms, including pricing, will remain valid for five years from the date of policy notification and may be extended by two years. Any subsequent revisions will apply uniformly to all authorised entities, including those already operating, the Ministry added.
To mitigate interference, TRAI recommends applying relevant ITU Radio Regulations (ITU-RR) and mandating good-faith coordination among all entities using shared spectrum in higher frequency bands. TRAI also suggested that the government may consider implementing spectrum-sharing frameworks and, as a last resort, adopt spectrum splitting provisions similar to those of the US Federal Communications Commission (FCC) in case two or more NGSO-based FSS satellite systems fail to complete coordination.
The recommendations stipulate mandatory coordination among entities establishing satellite earth station gateways and suggest that such gateways in IMT-identified bands like 42.5–43.5 GHz be located in remote or uninhabited areas only. Gateways must be commissioned within 12 months of approval.
Spectrum Assignment and Surrender
TRAI has also suggested that authorised entities be allowed to surrender spectrum before the end of its validity under recommended conditions. It recommends a defined 30-day timeline for spectrum assignment post application, subject to prior government clearance.
Regarding charges, spectrum usage will attract a 4 percent levy on Adjusted Gross Revenue (AGR), with a minimum annual charge of Rs 3,500 per MHz. For NGSO-based FSS in urban areas, an additional Rs 500 per urban subscriber per annum is proposed, while rural and remote areas are exempt.
Payment terms for spectrum charges:
AGR-based charges should be paid quarterly in advance, within 15 days of the start of the quarter.
Minimum spectrum charges must be paid in advance at the time of spectrum assignment and at the start of each year.
Per-subscriber charges for NGSO-based FSS are calculated quarterly as 125 x Nu, where Nu is the total number of subscribers in urban areas.
Subsidies for Remote Regions
TRAI also proposed that the government consider providing subsidies for NGSO-based user terminals, especially in underserved and remote regions to promote digital inclusion.
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