According to union minister of Communications and Development of Northeastern Region, satellite communication services will be rolled out in India once operators in the segment meet the requirements laid down by security agencies. He said that the government would soon be in a position to allocate spectrum to satellite communication players, once the Department of Telecommunications (DoT) finalises spectrum pricing. As per him, provisional spectrum has already been assigned to these companies to demonstrate compliance with national security requirements.
He noted that spectrum pricing is currently being worked out by the DoT in consultation with the Telecom Regulatory Authority of India (TRAI). Earlier this month, TRAI had rejected several proposals made by the DoT on satcom spectrum allocation, including increasing the annual spectrum fee to 5 per cent from 4 per cent and removing the proposed Rs 500 per-connection charge in urban areas. The Digital Communications Commission (DCC) is expected to decide the next course of action, which could include seeking cabinet approval on the final pricing framework.
In addition, on the issue of relief sought by Vodafone Idea Limited (Vi), the minister said the DoT is still examining the matter. He clarified that no relief has been granted to the company so far. Vi has earlier stated that its total liabilities to the government are close to Rs 2 trillion, including about Rs 1.19 trillion in spectrum dues, and has warned that without support, recovery of dues would be at risk.
He further pointed out that the Supreme Court has allowed the government to address the issue within the scope of its policy-making powers. He added that in the absence of any relief, Vi would be required to pay around Rs 180 billion by March 2026, followed by similar annual payments over the next six years, amounts that are significantly higher than its current annual cash generation.
