In response to the queries raised by the Department of Telecommunications (DoT), the Telecom Regulatory Authority of India (TRAI) stuck to its recommendations on creating a licensing framework for satellite-based connectivity for low bit rate applications like ATM, internet of things devices and traffic management. TRAI published its response with regard to clarifications sought by the DoT on the matter based on issues raised by the Digital Communications Commission (DCC), the apex decision making body at the DoT.
TRAI had, in August 2021, recommended to the government to replace the existing formula-based mechanism and levy spectrum usage charges of 1 per cent of adjusted gross revenue (AGR) for using satellite frequencies under the national long distance (NLD) service licence. To this end, TRAI has suggested excluding the revenue from the licensed services other than satellite-based services from AGR while computing the charges.
Further, TRAI has urged NLD service licensees to perform the accounting separation and maintain the revenues accruing from the satellite based services and other licensed services separately. The DCC decided to refer the matter back to TRAI to examine the feasibility of this accounting separation. Responding to this, TRAI said that DoT has not stated the issues in implementing the revenue separation and said that the authority reiterates its earlier recommendations and affirms that it is feasible for an NLD service provider to segregate revenues accruing from satellite connectivity.
The DoT had also shared that the DCC has asked TRAI to give recommendation on reducing the charges pertaining to roll-out of satellite based communication systems. However, TRAI said this issue was not part of the consultation process carried out by the regulator for low-bit rate connectivity applications. The regulator further asked the DoT to specify the charges the government levies on satellite based communication and which it is desirous of reducing.
