TRAI Rejects COAI’s Request To Review Satcom Spectrum Recommendations

The Telecom Regulatory Authority of India (TRAI) has reportedly rejected a request from the Cellular Operators Association of India (COAI) to review its satcom spectrum recommendations, asserting that the consultation process was thorough and transparent.

A PTI report, citing sources, said that the recommendations regarding spectrum have been submitted to the Centre after a detailed and transparent consultation process. During the consultation, all parties were given ample opportunity to present their views.

This comes days after major telecom players have reportedly flayed the TRAI’s recommendation that satellite spectrum be charged at 4% of adjusted gross revenue (AGR). The telcos deemed the TRAI’s spectrum pricing move as “unfairly low” and based on “flawed assumptions”.

A Business Standard report said that the COAI, which comprises Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi) among its members, wrote to DoT Secretary Neeraj Mittal a few days back, arguing that TRAI’s recommendations fail to ensure a level-playing field between satellite operators and traditional terrestrial service providers.

Telcos Vs TRAI’s Pricing Move

Telecom companies have been arguing that the TRAI’s pricing move would give satellite operators an unfair advantage while undermining the sustainability of traditional terrestrial services.

Satellite companies disagree with telecom companies’ claims about the regulator’s differential pricing proposal for satellite spectrum, arguing it’s intended to level the playing field between satcom and terrestrial broadband providers. They see differential pricing for urban and rural areas, along with increased spectrum fees, as measures to create competitive parity. 

As per ET reports, satcom companies view the regulator’s actions as a way to ensure competitive fairness between satellite and terrestrial services, potentially due to the capacity and latency advantages of satellite services.

TRAI Proposal Of Satcom Spectrum

This also comes at a time when a clutch of international satcom players, including Apple partner Globalstar, SpaceX-owned Starlink and Amazon-backed Project Kuipe are awaiting their licence clearances from the Centre to enter the Indian space market.

Earlier in May, the telecom regulator recommended a five-year tenure for spectrum allocation for satellite-based communication (satcom) service providers, which 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.

The recommendation further included a minimum charge of INR 3,500 per MHz annually, to be paid by satellite service providers. Also, 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. 

TRAI initially floated a consultation paper to formulate the pricing of satcom spectrum, in September last year, and asked the stakeholders to submit feedback on identifying a methodology for assigning the spectrum.