Trai and DoT dispute satellite spectrum fees delaying India's satcom rollout

Economic Times
Economic Times
2d ago • 5 views
Trai and DoT clash over satellite spectrum charges in India, risking delays in satellite broadband rollout and connectivity improvements in remote regions.
Trai and DoT dispute satellite spectrum fees delaying India's satcom rollout
A What happened
The Telecom Regulatory Authority of India (Trai) and the Department of Telecommunications (DoT) are in disagreement over the pricing and allocation of spectrum for satellite communications, threatening to delay India's satellite broadband rollout. The DoT proposes a 5% annual spectrum fee with conditional discounts for operators serving rural, border, and difficult terrains, and waivers of connection charges for qualifying urban services. Trai rejects these proposals, maintaining a 4% fee and a Rs 500 annual subscriber charge for urban users to encourage operators to focus on underserved rural areas. Trai cautions that DoT’s approach could lead operators to concentrate in profitable urban markets, undermining rural connectivity efforts. This policy deadlock threatens to delay the allocation of satellite spectrum and the entry of key providers like Elon Musk's Starlink and Eutelsat OneWeb into the Indian market, potentially impacting millions awaiting improved digital access in remote areas.

Key insights

  • 1

    Spectrum Pricing Dispute: Trai recommends a 4% annual spectrum charge plus Rs 500 per subscriber annually for urban users, while DoT seeks a 5% fee and conditional discounts for rural and tough terrains.

  • 2

    Impact on Rural Connectivity: Trai argues that DoT’s proposed discounts may incentivize providers to prioritize urban areas, potentially worsening the digital divide in remote and underserved regions.

  • 3

    Industry and Market Readiness: Major satellite broadband companies like Starlink and Eutelsat OneWeb are awaiting regulatory clarity, with the dispute stalling the commercial launch of high-speed satellite internet across India.

Takeaways

Resolving the dispute between Trai and DoT is critical to advancing India’s satellite broadband services, which hold the potential to significantly improve connectivity in hard-to-reach areas.

Topics

Science & Research Space World & Politics Policy & Regulation