4% of AGR as spectrum charge: Trai paves way for satellite internet in India

Satellite communication operators in India should have to pay 4 per cent of their annual adjusted gross revenue (AGR) as spectrum usage charges (SUC) to offer services in the country, the Telecom Regulatory Authority of India (Trai) recommended on Friday.

- SUBHAYAN CHAKRABORTY

The authority also proposed that the space spectrum be assigned for five years, extendable by an additional two years.

The pricing formula has been kept uniform for both non-geostationary satellite orbit (NGSO) and geostationary satellite orbit (GSO)-based fixed-satellite service (FSS) and mobile satellite service (MSS).

In addition, Trai has mandated a minimum spectrum charge of ₹3,500 per MHz per annum for both GSO and NGSO services.

For NGSO, an additional ₹500 per subscriber will be levied annually in urban areas, while rural users will be exempt.

In addition to the SUC, an 8 per cent licence fee will apply to these players, Trai Chairman Anil Kumar Lahoti said.

Trai recommended that operators not be charged a separate fee to get access to satellite spectrum—unlike terrestrial spectrum, which is auctioned.

Lahoti defended this by arguing that satellite spectrum is a pooled resource, and stressed that it was priced accordingly across the world.