Pushing back against higher spectrum fees, TRAI safeguards affordable satellite access with a firm 4 per cent AGR stance and fresh protections for rural connectivity.
The Telecom Regulatory Authority of India (TRAI) has turned down a proposal from the Department of Telecommunications (DoT) to increase adjusted gross revenue (AGR) charges for satellite communications operators.
The DoT had suggested lifting the levy from 4 per cent to 5 per cent for spectrum use in the satcom sector. TRAI said the higher rate would undermine efforts to expand connectivity in underserved regions.
The regulator reaffirmed its long-standing view that non-geostationary orbit (NGSO) fixed satellite service (FSS) operators should pay a 4 per cent AGR charge. It added that a hike would be counterproductive for a sector expected to bridge gaps in digital access.
TRAI also proposed a targeted contribution model. Operators would pay an additional ₹500 per subscriber each year in urban areas. Rural and remote regions would be exempt from this charge to support affordable access.
The regulatory authority noted that the DoT’s parallel suggestion to apply a lower 1 per cent AGR for Bharat Sanchar Nigam Ltd’s (BSNL) global satellite phone service licence was discriminatory. It said all operators, whether using geostationary orbit (GSO) or NGSO systems, should follow uniform spectrum-pricing principles.
The authority stressed that satellite services are essential for expanding reliable communication to remote, unserved and underserved locations. It said these systems can help reduce the digital divide by improving economic activity, access to services and information for communities that lack terrestrial networks.
TRAI also highlighted the need to encourage private investment in NGSO-based FSS operations, especially in areas with large connectivity deficits. Urban regions, it warned, may naturally attract more commercial focus due to higher purchasing power.
To strengthen rural access, TRAI suggested using the Digital Bharat Nidhi to support targeted telecom schemes. Funds could be channelled through third-party agencies to improve the efficiency of subsidy delivery.
The recommendations come as firms such as Starlink, Eutelsat, OneWeb and Jio SES prepare to enter India’s satellite broadband market. The authority said the government may consider additional schemes to accelerate the deployment of affordable broadband in challenging terrain.
