The telecom department’s highest decision-making body has sought clarification from TRAI on certain aspects of its satellite spectrum recommendations. Sources indicate that the back-reference could pertain to the fee proposed for urban customers and the annual minimum spectrum charges. This development is significant for prominent companies like Elon Musk's Starlink, Bharti-backed Eutelsat OneWeb, and Reliance Jio-SES, which are all vying for a share of the broadband market beamed from the Indian skies.
The Digital Communications Commission (DCC) met on Tuesday to discuss the recommendations of the Telecom Regulatory Authority of India (TRAI) on satcom spectrum. Sources said the multi-ministry apex body has decided to seek clarification from TRAI on certain aspects of its recommendations.
Area of concerns
One area of concern is the regulator's suggestion to charge an additional Rs 500 per year from users in urban areas. Sources familiar with the matter say the Telecom Department believes this could lead to implementation and billing challenges, as well as difficulties in clearly demarcating between rural and urban areas.
Another point of clarification concerns TRAI's recommendation of an annual minimum spectrum charge of Rs 3,500 per MHz for both GSO (geostationary orbit) and NGSO (non-geostationary orbit) based fixed and mobile satellite services. The DoT reportedly feels that since spectrum is a valuable resource, this amount is too low and may not be an effective deterrent against companies who hold the spectrum but do not use it. The department believes the charge should be higher to ensure efficient utilisation.
TRAI recommendations
In May, TRAI released its recommendations on pricing for satellite-based internet services, suggesting a 4 per cent annual revenue fee on operators. It also recommended that satellite broadband spectrum be allotted for a period of five years, which could be extended by two more.
Airtel, Jio and Starlink India roll out
SpaceX, led by Elon Musk, has already partnered with Reliance Jio and Bharti Airtel to bring Starlink’s broadband services to India. The two Indian companies will provide Starlink equipment through their networks and assist with customer installation.
Separately, Eutelsat OneWeb and Jio Satellite Communications have already received licenses from the Department of Telecommunications to offer satellite internet services in the country. Amazon’s Kuiper is also awaiting DoT's approval.
Strict security norms
Earlier this year, the government issued strict security norms, mandating the legal interception of satellite communication services. These rules also prohibit companies from linking user connections to any terminal or facility outside of India and from processing their data overseas.
The tighter security regulations also require service providers to indigenise at least 20 per cent of their satellite network's ground segment within two years of their establishment in the country. Additionally, license holders will need security clearances for specific gateway and hub locations and must comply with monitoring and interception facility requirements.
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