Telcos slam Trai's satcom plan

The COAI has alleged the regulator's plan is non-transparent, unjustified, does not lead to a level-playing field

- Jatin Grover & Devina Sengupta

India's private telecom operators have alleged that the pricing for satellite spectrum recommended by the telecom regulator is non-transparent, unjustified, and does not lead to a level-playing field. The concerns were conveyed in a letter to the Union government from the Cellular Operators Association of India (COAI), which represents Reliance Jio, Bharti Airtel and Vodafone Idea.

The letter, a copy of which has been seen by Mint, also refers to the trillions of rupees pumped in by India's terrestrial internet operators in spectrum auctions over the years, and insists that satellite internet will compete with terrestrial services, rather than being complementary.

Further, the letter says that the objective of using satellite services to bridge the urban-rural digital divide will not be met with the current recommendations, and has urged the Centre to form a committee for a comprehensive review.

The concerns have come at a time when satellite internet service providers such as Starlink, Eutelsat OneWeb, Jio Satellite, and Amazon's Kuiper, among others, are preparing to launch services in India. Currently, the recommendations of the Telecom Regulatory Authority of India (Trai) are pending with the department of telecommunications (DoT).

Trai had recommended administrative allocation of spectrum, as opposed to auctions, for satellite internet services. It said satcom companies will have to pay annual spectrum charges of either 4% of their adjusted gross revenue (AGR) or ₹3,500 per MHz, whichever is higher.

To be sure, satcom operators will also have to pay an annual licence fee of 8% of AGR to the Centre, per current authorization terms of the DoT.