The Department of Telecommunications (DoT) is likely to retain a 5 per cent adjusted gross revenue (AGR) charge as the usage fee for satellite communication spectrum, rejecting the proposal of the Telecom Regulatory Authority of India (TRAI) to levy a 4 per cent fee. The regulator had reiterated most of its earlier recommendations on satellite spectrum pricing in December despite objections from the department.
The DoT has reviewed the clarifications provided by the TRAI and decided to maintain the 5 per cent AGR charge. The department has also proposed a 1 per cent discount for operators serving hard to connect areas, stating that the structure is more suitable and easier to implement.
While the TRAI can provide recommendations, the final decision rests with the government and it is not mandatory for the government to accept all the recommendations. In previous instances as well, the DoT has adopted positions different from those suggested by the regulator.
The proposal is expected to be taken up by the Digital Communications Commission, the highest decision-making body of the DoT, in the coming weeks. After that, the cabinet is expected to take a final decision on the pricing.
Additionally, the move could affect companies planning to launch satellite broadband services in India, including Starlink, Eutelsat OneWeb backed by the Bharti Group, Amazon’s Project Kuiper and Jio Satellite Communications.
