DoT May Stick to Trai's Satcom Pricing Script

Regulator's recommendations likely to be cleared soon

- GULVEEN AULAKH & AASHISH ARYAN

The Department of Telecommunications (DoT) is not considering any changes to the satellite spectrum pricing recommendations by the Telecom Regulatory Authority of India (Trai), despite opposition from telecom operators, which argue that the proposed charges are "unfair" and "unjustifiably low," according to government officials in the know.

Under the Trai recommendations, satellite communications (satcom) providers would be required to pay 4 per cent of their adjusted gross revenue (AGR), in addition to an annual fee of ₹3,500 per megahertz and ₹500 per urban subscriber.

"The regulator has given its recommendations. There is no need for any changes to them," said a senior official. "Telcos have presented their views, but there's enough time for the market dynamics to play out. After five years, it can be reviewed," the official added, requesting anonymity.

Another official said the recommendations are likely to be approved within the next couple of months. The approval process will involve review by the Digital Communications Commission (DCC), the apex decision-making body in the telecom department, and may also require vetting by the Ministry of Finance.