Satellite cos like Starlink to pay 4% of revenue as spectrum charges

Operators offering satellite-based broadband internet services in urban areas would have to shell out extra Rs 500/subscribers annually

- OUR CORRESPONDENT

NEW DELHI: Telecom regulator TRAI on Friday recommended that satellite communication companies like Starlink pay 4 per cent of their adjusted gross revenue (AGR) as spectrum charges to the government.

Operators offering satellite-based broadband internet services in urban areas would have to shell out an additional Rs 500 per subscriber annually, TRAI said in its recommendations to the Department of Telecommunications (DoT).

No additional levy would be applicable for services in rural areas.

The levy recommended by TRAI is steeper than what satcom companies have been lobbying for.

Elon Musk's Starlink and Amazon Inc's subsidiary Kuiper Systems had during consultations with the TRAI urged it to keep spectrum charge below 1 per cent of adjusted gross revenue (AGR) with no other charge.

The Telecom Regulatory Authority of India (TRAI) recommended that satellite broadband spectrum be allotted for five years, which can be extended by another two years.

The satellite spectrum pricing as a percentage of AGR is for both non-geostationary satellite orbit (NGSO) and Geostationary satellite orbit (GSO) based fixed-satellite service (FSS) and mobile satellite service (MSS).