Trai Proposes 4% AGR Levy for Satcom Firms

Telecom regulator Trai on Friday recommended that satellite communication companies like Starlink pay 4% of their adjusted gross revenue (AGR) as spectrum charges to the government—a rate steeper than what these firms had been lobbying for.

- Press Trust of India

NEW DELHI:

Operators offering satellite-based broadband internet services in urban areas would have to shell out an additional ₹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% of 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.