DoT raises concerns over Trai’s proposed charges for satellite internet providers

The DoT wants the Telecom Regulatory Authority of India (Trai) to review the additional annual charge of ₹500 per subscriber on satellite service providers for serving high-paying users in urban areas, said one of the people cited. The concerns stem from the difficulty in differentiating between subscribers located in urban and rural areas, which could become a grey area and make it hard to monitor or prevent potential violations, the official said on the condition of anonymity.

The department also asked the regulator to increase ₹3,500 per MHz annual minimum spectrum charge, especially for mobile satellite services (MSS), the official said.

The Digital Communication Commission (DCC) met on Tuesday to discuss Trai’s recommendations on the satellite spectrum pricing. The DCC comprises officials from the DoT, the NITI Aayog chief executive and the secretaries of economic affairs, and electronics and information technology ministry, among others.

In May, Trai recommended that satellite internet companies must pay 4% of their adjusted gross revenue (AGR) as spectrum charges to the government, besides a ₹500 per subscriber charge for satellite service providers in urban areas.

Trai had also prescribed an annual minimum spectrum charge of ₹3,500 per MHz for satellite companies. This will be paid if the 4% of AGR turns out to be smaller, setting the floor on the charges to ensure a minimum revenue to the government.

Trai’s recommendations are largely fine. DoT will seek clarity on certain pricing recommendations Trai has made, among a few other things,” the first official quoted above said. The DoT will send a back reference to Trai seeking clarifications on certain aspects, the official said.

Queries emailed to the DoT on Tuesday evening did not elicit any response until press time.

“There is also a concern about the minimum ₹3,500 per MHz minimum spectrum charge for mobile satellite services (MSS), whenever these will start. This is because the spectrum they will use is precious (in L band) and therefore the charges need to go up,” the second official cited above said, also speaking on the condition of anonymity.

Fixed satellite services deliver data communication and internet to fixed locations like homes, offices, or remote sites using stationary satellite dishes. Mobile satellite services provide voice calls, text messaging, data, and internet access to users who are on the move—such as people on ships, airplanes, or in remote vehicles—using mobile terminals that can maintain a connection while in motion.

Industry divide

DoT has flagged low pricing when telecom operators have expressed concerns that satellite internet companies would eat into their market share with satellite internet services. Services such as direct-to-device (D2D), which allow mobile phones to connect directly to satellites, are seen as a competition for telecom operators.

The Cellular Operators Association of India (COAI) on 29 May wrote to the government, arguing that Trai’s pricing for satellite spectrum is unjustifiably low, non-transparent, and does not lead to a level-playing field.

However, the Broadband India Forum (BIF), which represents Big Tech and satellite companies, in June told the government that there was no question of a level-playing field, given the vast differences in technologies, services, infrastructure costs, and spectrum assignment methods. Opposing the argument of low-pricing, the BIF said the economic scale of telecom and the two are vastly different. Terrestrial operators in India generate over ₹3.36 trillion annually, while the combined satellite communication market barely touches ₹540-600 crore—a mere 0.2% of telco revenue, according to BIF.

Currently, Starlink, OneWeb and Jio Satellite have secured the licences to provide satellite internet services in the country.