Daijiworld Media Network – New Delhi

New Delhi, Dec 9: A sharp tussle has emerged between the Telecom Regulatory Authority of India (Trai) and the Department of Telecommunications (DoT) over key issues relating to satellite communication (satcom) spectrum charges, creating uncertainty for global and Indian players waiting to begin commercial satellite broadband services.

Companies such as Elon Musk’s Starlink and Sunil Mittal–backed Eutelsat OneWeb are awaiting final regulatory clarity, but the disagreement between the two agencies is now expected to delay the allocation of satcom spectrum — potentially pushing back the launch of services in the country.

Trai on Monday rejected several major proposals sent by DoT as part of a back reference to its recommendations on satcom spectrum allocation. The regulator stood firm on its earlier decision to levy a 4% annual spectrum fee on satcom players, turning down DoT’s suggestion to increase the fee to 5% with a conditional 1% discount for connections in border and remote hilly regions.

Trai also refused to withdraw its recommended annual charge of Rs 500 per customer for urban satcom connections. DoT had proposed scrapping the fee if companies achieved specific rural connectivity targets.

“The authority does not concur with DoT’s proposal to charge spectrum at 5% of AGR with conditional discounts for providing connectivity to hard-to-connect areas such as border, hills, or islands,” Trai said, reaffirming its original recommendations.

The regulator added that the government is free to introduce separate schemes to utilise fixed satellite services (FSS) for cost-effective broadband expansion in border, hilly and island regions, especially to improve affordability of user terminals.

Trai warned that adopting DoT’s suggestions could leave a large part of rural India behind in accessing satellite connectivity. It noted that because urban users have higher purchasing power and data demand, satellite operators offering NGSO (Non-Geostationary Satellite Orbit)-based services may prioritise cities, widening the digital divide.

By imposing a Rs 500 annual per-subscriber charge only in urban areas and exempting rural and remote regions, Trai said operators would have a clear incentive to expand services into underserved areas rather than focusing solely on profitable urban markets.