Govt to allocate satellite spectrum for five years; to charge AGR at 4%
According to the recommendation, the TRAI has proposed that both GSO and NGSO-based FSS operators will be required to pay 4% AGR, with a minimum annual charge of `3,500 per MHz spectrum block. Additionally, operators offering services in urban areas would have to shell out `500 per subscriber annually.
TRAI said spectrum to be assigned in Ku, Ka, and Q/V bands, with IMT bands (e.g., 42.5–43.5 GHz) only allowed in remote/uninhabited areas. The services must be commissioned within 12 months of approval.
The TRAI chairman also said the government may consider the provision of a subsidy for NGSO-based FSS user terminals for rural or remote areas. He argued that the one-time hardware cost ranges between 20,000 to 50,000, given the low purchasing power of consumers in rural area this can become a barrier. In recent months, Jio and Airtel had joined forces to lobby for an auction process to allocate spectrum for satellite services in India. In contrast, Musk advocated for an administrative allocation in line with international norms. Last October, the government sided with Musk's approach, opting for a pre-determined price for the airwaves used to deliver low-latency internet via satellite.
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