The regulator said the primary goal of expanding satellite services is to provide reliable connectivity to rural, remote, unserved and underserved areas.
| Photo Credit:
aapsky
In a significant development, Telecom Regulatory Authority of India (TRAI) on Monday rejected the Department of Telecommunications’ (DoT) suggestion to charge 5 per cent adjusted gross revenue (AGR) from satellite communications (satcom) players instead of 4 per cent.
It also suggested that operators should pay an additional per subscriber charge of ₹500 per annum in urban areas, while the rural and remote areas should be exempted from this additional charge.
TRAI, from Day 1, had recommended a spectrum charge of 4 per cent AGR for non-geostationary orbit (NGSO)-based fixed satellite services (FSS). However, DoT proposed a re-evaluation of urban vs rural pricing, suggesting a 5 per cent charge with incentives for service in underserved areas.
“TRAI recommends that spectrum charges for GSO/NGSO-based mobile satellite services be set at 4 per cent of AGR. DoT proposes a lower rate of 1 per cent for BSNL’s GSPS licence, citing strategic service provision, which TRAI finds discriminatory,” it said.
Reliable connectivity
The regulator said the primary goal of expanding satellite services is to provide reliable connectivity to rural, remote, unserved and underserved areas…Satellite services can significantly reduce the digital divide by enhancing economic participation and access to critical information.
“A focused strategy is needed to attract investment from NGSO-based fixed satellite service providers in regions with substantial connectivity gaps,” it said adding that urban areas have higher purchasing power and data consumption, which may lead NGSO-based FSS providers to prioritise these regions.
The authority also suggested that the Digital Bharat Nidhi can fund schemes for targeted access to telecommunication services in underserved areas, adding that funding can be provided through third-party implementers to ensure effective distribution of subsidies.
The DoT had sought some changes in the recommendation of TRAI on satcom spectrum allocation methodology and charges for companies such as Elon Musk-owned Starlink, Bharti Group-backed Eutelsat OneWeb and Jio SES that are in fray to start their services in India.
“The Authority reiterates its recommendations…However, the government may adopt any additional schemes to take advantage of FSS for faster and economical expansion of broadband services in identified hard-to-connect areas, including but not limited to hills, border areas and islands, particularly addressing affordability of user terminals,” TRAI added.
Published on December 8, 2025
