TRAI Proposes Satcom Spectrum Allocation For 5 Years

TRAI Proposes Satcom Spectrum Allocation For 5 Years

SUMMARY

TRAI has recommended a 5-year spectrum allocation for satcom services, extendable by 2 years

The telecom regulator has has pegged the pricing at 4% of adjusted gross revenue for all satellite service providers

For satellite gateways, TRAI has recommended a 12-month deadline for installation after government approval

The Telecom Regulatory Authority of India (TRAI) has recommended a five-year tenure for spectrum allocation for satellite-based communication (satcom) service providers. 

The proposal covers spectrum usage for both geostationary (GSO) and non-geostationary (NGSO) satellite systems and sets clear rules around pricing, service rollouts, and coordination among operators.

In a statement, TRAI said that the spectrum should be assigned for up to five years initially, with a potential extension of two more years based on market needs. The five-year term will also apply to the pricing regime, meaning any changes in fees or conditions made after this period will apply universally to all players, including existing operators. 

The move is aimed at providing predictability and a level playing field in a sector that’s expected to attract global and domestic players.

The likes of Amazon’s Project Kuiper and Apple partner Globalstar are seeking satcom licences, while Eutelstat OneWeb and Jio-SES have received initial approvals to operate in the country. 

Earlier this week, Elon Musk-led Starlink received a Letter of Intent for its satcom services. However, Starlink was said to have sought allocation of the satcom spectrum for 20 years.

Notably, TRAI has also recommended the service wise allocation of frequency bands. It has pegged the pricing at 4% of Adjusted Gross Revenue (AGR) for all satellite service providers, with a minimum charge of INR 3,500 per MHz annually. 

In addition, NGSO-based providers will need to pay INR 500 per urban subscriber per year, though this charge will not apply in rural or remote regions. 

To avoid interference and delays, TRAI has called for good-faith coordination among all authorised entities sharing spectrum. If coordination fails, the government may introduce spectrum splitting as a last resort, following models like that of the US FCC (Federal Communications Commission). 

For satellite gateways, or ground stations, TRAI has recommended a 12-month deadline for installation after government approval. Gateways may be located in remote areas where terrestrial mobile networks are unlikely to expand.

The government has also been advised to explore subsidies for user terminals in underserved areas and introduce a defined 30-day window for spectrum assignment after an operator receives in-principle clearance. 

The new rules, once accepted by the Department of Telecommunications, will form what could be the foundation for India’s commercial satcom framework.

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