The Digital Communications Commission (DCC) has approved a spectrum usage charge of 5% of adjusted gross revenue (AGR) for satellite internet operators, paving the way for companies such as Starlink, Eutelsat OneWeb and Jio Satellite to expand broadband services in India.
According to a report by Live Mint, the decision was taken at a recent meeting of the commission, the Department of Telecommunications’ (DoT) highest decision-making body, according to officials and industry executives aware of the matter.
Operators providing satellite internet services in government-identified difficult-to-connect regions, including border areas, hilly locations and islands, will be eligible for a reduction of one percentage point in the spectrum charge.
However, commercial satellite launches will continue to require security approvals and other regulatory clearances.
Spectrum allocation to remain administrative
The spectrum for satellite communication services will be assigned through an administrative process rather than auction for an initial period of five years. The assignment may be extended by another two years, according to officials.
The approval removes a major regulatory hurdle for satellite broadband companies preparing to offer commercial services in India. However, the proposal will still have to go through the remaining approval procedures within the government.
The DCC’s decision follows a review of recommendations made by the Telecom Regulatory Authority of India (Trai) regarding spectrum allocation terms for satellite-based communication services.
Trai had earlier suggested a 4% AGR-linked spectrum charge with a minimum annual payment of ₹3,500 per MHz. The DoT, however, did not accept Trai’s recommendation of a ₹500-per-subscriber charge for urban customers, citing difficulties in separating rural and urban users.
Focus on bridging digital divide
Officials said the lower spectrum charge for remote areas aims to encourage satellite internet providers to focus on locations where satellite technology offers greater advantages over traditional telecom networks.
“The idea is that the incentives should be based on areas where LEO/MEO (low-Earth orbit/medium-Earth orbit) satellites work better than regular technologies, like border regions, hilly areas, and islands,” said another official.
The government has been considering incentives to ensure satellite internet services contribute to improving connectivity in underserved regions rather than concentrating only on urban markets.
