NEW DELHI: The Telecom Regulatory Authority of India (TRAI) has rejected the Department of Telecommunications’ (DoT) suggestion to proceed levying spectrum fees at 1% of the adjusted gross income (AGR) for the state-owned Bharat Sanchar Nigam Limited‘s (BSNL) satellite-based providers, because the nation prepares for a multi-player satcom market.
The telecom regulator has struck down preferential spectrum pricing for the general public sector telco, as a substitute proposing a uniform spectrum charge at 4% of the AGR for all satellite tv for pc service suppliers, no matter possession.
“The DoT has…proposed to proceed levy of spectrum fees at 1% of AGR for GSPS (International Satellite Cellphone Service) (sui-generis) license of BSNL, citing that BSNL is especially offering providers for strategic functions. Such a proposition would now be unfair and unreasonable,” TRAI stated in its response to the telecom division’s newest back-reference on spectrum project for satellite-based communication providers.
The telecom watchdog cited that DoT’s proposal would have resulted in lesser spectrum fees solely for a selected service supplier, i.e., BSNL, and would have been discriminatory to different cellular satellite tv for pc service (MSS) suppliers.
Additional, TRAI dismissed the argument that BSNL’s service ought to entice decrease fees as it’s “strategic” in nature, reasoning that different telecom service suppliers are facilitating strategic connectivity, too.
“Presently, there is no such thing as a scheme for differential charging of lesser spectrum fees throughout providers and throughout service suppliers for offering providers for strategic functions. On this rely additionally, such a preferential remedy could be discriminatory,” the regulator added.
Nevertheless, TRAI acknowledged that its advice in 2018 to levy spectrum fees at 1% of the AGR, beneath the ‘sui generis’ (distinctive) class, was made at a time when BSNL was the only operator offering satellite-based providers by way of a gateway put in in India.
Again then, international satellite tv for pc telephone service was primarily utilized by authorities companies, and that was the one option to avail of telecom connectivity in far-flung areas and water our bodies. “At the moment, this service was not thought-about a premium service however was akin to emergency providers,” TRAI famous.
The regulator additionally famous {that a} DoT order issued in June 2022 had expanded the scope of BSNL’s ‘sui generis’ license to incorporate satellite-based information connectivity for the Web of Issues (IoT) and aggregator units.
In line with TRAI, this growth additional weakened the case for a concessional spectrum pricing, as satellite tv for pc providers are more and more being deployed for industrial functions fairly than restricted emergency use.
TRAI moreover stated that DoT, in its reference in July 2024, had sought a level-playing discipline with terrestrial entry providers for satellite-based communication providers, and likewise to take into consideration providers offered by geostationary orbit (GEO)-based satellite tv for pc communication providers whereas recommending phrases and situations for non-geostationary orbit (NGSO)-based fastened satellite tv for pc providers.
“The preferential remedy of GSPS providers of BSNL seems prima facie opposite to those phrases acknowledged in DoT’s Reference,” the Authority famous.
India is at present within the means of finalising pricing and different modalities for allocating spectrum to satcom corporations.
Up to now, the DoT has permitted three corporations to launch satcom providers. Aside from Starlink, Bharti group-backed Eutelsat OneWeb and Jio’s satellite tv for pc enterprise have additionally secured the required approvals. All are at present awaiting spectrum allocation for beginning industrial providers.
TRAI rejected the telecom division’s proposal for a differentiated spectrum charging framework for Web of Issues (IoT) providers, stating that the present framework doesn’t distinguish providers based mostly on finish use.
