The Department of Telecommunications (DoT) has played down concerns flagged by operators over the Telecom Regulatory Authority of India’s (TRAI’s) recommendations on satcom spectrum pricing. The DoT has reportedly written to the DoT in June, arguing that TRAI’s suggested spectrum charges are too low.
While the department reportedly plans to ask TRAI to revisit its proposals, it believes that, in the near to medium term, satellite broadband providers will not be large enough in terms of subscriber to compete with or erode telcos’ fixed broadband revenues.
Additionally, a DoT analysis based on current capacity filings with the space regulator suggests satcom can serve about 1.2 million broadband connections in the near to medium term, versus 44 million fixed broadband users already in India.
However, to ensure clarity as satellite services scale with advancing technology, the DoT wants to frame regulations now so that all players are treated equitably.
Earlier, in its recommendations on assigning satcom spectrum, TRAI proposed administrative allocation for five years, extendable by two more, and suggested a fee of 4 per cent of adjusted gross revenue with no upfront payment. The DoT, however, maintains that the conditions could be revised even within five years if new technology emerges or if the spectrum is deployed for services beyond data and internet.
