The Department of Telecommunications (DoT) has released draft rules governing the administrative allocation of spectrum to state-run telecom operators, law enforcement agencies and satellite communication service providers, including very small aperture terminal (VSAT) operators and teleport service providers.
The rules will apply to spectrum assigned administratively, rather than through auctions, for specific purposes under Schedule 1 of the Telecommunications Act.
For the satellite communications segment, the draft rules currently apply only to geostationary orbit (GSO) satellite operators, including providers of VSAT, teleport and broadcasting services. They do not cover non-geostationary orbit (NGSO) operators such as Starlink, Eutelsat OneWeb and Amazon Kuiper.
The Telecom Regulatory Authority of India (TRAI) has already submitted recommendations on pricing and other regulatory aspects for NGSO operators, which are currently under consideration by the DoT. TRAI has recommended a spectrum usage charge of 4 per cent of adjusted gross revenue (AGR) for NGSO satellite operators, rejecting the DoT’s earlier proposal of a 5 per cent AGR levy with a 1 per cent concession for services in underserved regions.
At present, only GSO-based fixed satellite service providers such as Hughes and Nelco are permitted to offer commercial satellite services in India. These operators primarily serve enterprise customers and currently pay spectrum charges ranging between 3 per cent and 4 per cent of AGR.
The draft rules retain the existing 3-4 per cent AGR-based spectrum fee structure for GSO operators. They also continue the 1 per cent AGR spectrum charge applicable to Bharat Sanchar Nigam Limited’s (BSNL) global satellite phone service under a sui generis category.
The draft framework has been placed in the public domain for consultation, with stakeholders invited to submit comments and objections within 30 days of notification.
Several NGSO operators have already secured satellite communication licences and approvals from the Indian National Space Promotion and Authorisation Centre (IN-SPACe). However, commercial service launches remain contingent on spectrum allocation, finalisation of pricing and security clearances. Amazon Kuiper is among the companies still awaiting approvals.
Under the Telecommunications Act, spectrum for both GSO and NGSO satellite services will be assigned administratively rather than through auctions.
