border regions, hilly areas and islands<\/strong>, where traditional terrestrial telecom networks can be difficult or expensive to deploy.<\/p>\n\n\n\nUnder the proposed structure, qualifying services could therefore face a spectrum charge of 4% of AGR instead of the standard 5%.<\/p>\n\n\n\n
The government wants the incentive to encourage satellite operators to serve locations where satellite connectivity has a stronger advantage over conventional mobile networks.<\/p>\n\n\n\n
Spectrum Will Be Assigned Without Auction<\/strong><\/p>\n\n\n\nUnlike conventional telecom spectrum, the satellite spectrum will be administratively assigned rather than auctioned<\/strong>.<\/p>\n\n\n\nThe assignment will initially be valid for five years<\/strong>, with an option to extend it by another two years.<\/p>\n\n\n\nHowever, commercial launches will still require security and other regulatory clearances. The DCC’s decision also needs to go through the remaining government approval process before the framework is fully implemented.<\/p>\n\n\n\n
TRAI Had Recommended 4%<\/strong><\/p>\n\n\n\nThe decision differs from the earlier recommendation of the Telecom Regulatory Authority of India (TRAI).<\/p>\n\n\n\n
TRAI had proposed a 4% AGR-linked spectrum charge<\/strong>, along with a minimum annual charge of \u20b93,500 per MHz. It had also recommended a \u20b9500 annual charge per subscriber in urban areas to discourage satellite providers from concentrating primarily on cities.<\/p>\n\n\n\nThe DoT has rejected the urban per-subscriber charge, arguing that distinguishing between rural and urban users could create implementation difficulties.<\/p>\n\n\n\n
Separate 8% Licence Fee<\/strong><\/p>\n\n\n\nSatellite communication operators will also have to pay an 8% licence fee on AGR<\/strong> under the existing authorisation framework.<\/p>\n\n\n\nThat means the overall revenue-linked government charges could become significant, even though satellite operators will not have to compete in an auction for spectrum.<\/p>\n\n\n\n
Industry observers have also raised concerns about whether satellite broadband will be affordable for ordinary consumers, given the relatively high cost of satellite connectivity.<\/p>\n\n\n\n
A Major Step for Starlink and Jio<\/strong><\/p>\n\n\n\nThe regulatory decision is particularly important for companies such as Starlink, OneWeb and Jio Satellite as they prepare to compete in India’s broadband market.<\/p>\n\n\n\n
Satellite services could help extend internet connectivity to remote locations where laying fibre or building dense mobile networks is commercially difficult.<\/p>\n\n\n\n
For India, the challenge will be balancing affordable satellite connectivity, government revenue, rural coverage and fair competition with traditional telecom operators.<\/p>\n\n\n\n
Summary:<\/strong> India has approved a 5% AGR-linked spectrum charge<\/strong> for satellite internet providers including Starlink, OneWeb and Jio Satellite, with a 1% discount for services in designated hard-to-connect areas<\/strong>. Satellite spectrum will be administratively assigned for five years, extendable by two years. The decision clears a major regulatory hurdle for satellite broadband, although further approvals remain.<\/p>\n","protected":false},"excerpt":{"rendered":"Satellite Internet Firms to Pay 5% of AGR India has moved closer to opening the door for large-scale satellite internet services, with the Digital Communications Commission (DCC) approving a 5% spectrum usage charge linked to adjusted gross revenue (AGR) for satellite communication providers. The decision covers major players including Starlink, Eutelsat OneWeb and Jio Satellite, […]<\/p>\n","protected":false},"author":30,"featured_media":1313699,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[1934],"class_list":["post-1313690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-satellite-internet"],"acf":[],"yoast_head":"\n
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