The Department of Telecommunications (DoT) has reportedly turned down the Telecom Regulatory Authority of India’s (TRAI) proposal to impose an additional Rs 500 annual charge per urban satcom subscriber to fund rural connectivity rollouts, questioning the rationale behind the suggested figure.
While DoT has accepted TRAI’s recommendation of administratively allocating satellite spectrum for a fee of 4 per cent of adjusted gross revenue (AGR) without upfront payment, it has rejected both the urban subscriber levy and the use of the Digital Bharat Nidhi (DBN) to subsidise satellite terminals. Meanwhile, DoT will send a back reference to TRAI for reconsideration after the Digital Communications Commission (DCC) reviews the matter.
TRAI had argued that the extra urban charge would incentivise satellite operators to expand rural services and proposed DBN subsidies for satellite terminals costing Rs 20,000- Rs 50,000. However, DoT maintained that there is little fiscal room for new projects under DBN and that the fixed levy requires re-examination based on satcom service pricing.
On spectrum management, DoT also flagged that compliance with ITU regulations alone may not be sufficient, stressing the need to safeguard future Indian satellite constellations and promote collaboration among players to address interference issues.
