Telecom Regulatory Authority of India (TRAI) has reportedly turned down the proposal to allow Bharat Sanchar Nigam Limited (BSNL) to continue paying just one per cent of adjusted gross revenue (AGR) as spectrum usage charge for satellite services, instead supporting a flat four per cent AGR levy for all satellite operators. The regulator noted that a lower, operator-specific charge for BSNL would be discriminatory at a time when India is opening its satellite communications market to several private and global players, underlining that policy must reflect competitive neutrality as satellite services become part of mainstream telecom and broadband.
In its latest recommendations on satellite spectrum assignment terms, TRAI said both geostationary orbit (GSO) and non-geostationary orbit (NGSO) services should be subject to the same AGR percentage, regardless of whether the operator is state-owned or private. It added that the earlier rationale for a concessional one per cent rate no longer applies as the satellite communications market evolves. At the same time, the authority sought to balance commercial sustainability with inclusion by endorsing a framework that combines the four per cent AGR charge with an additional per-subscriber fee in urban areas, while sparing rural and remote users from extra spectrum-related costs.
Additionally, TRAI highlighted alternative mechanisms such as targeted subsidies and potential support from the Digital Bharat Nidhi to address affordability and device-related challenges in remote regions, rather than embedding permanent spectrum concessions for a single operator. The broader policy signal is that BSNL will no longer enjoy legacy spectrum advantages in satellite services as India gears up for wider satcom competition, and that clear, predictable charges are critical to attract investment from new entrants, including global low-Earth orbit constellations.
