Starlink, other satcom firms to pay 4% revenue as spectrum charges: TRAI

Telecom regulator TRAI on Friday recommended that satellite communication companies like Starlink pay 4 per cent of their adjusted gross revenue (AGR) as spectrum charges to the government — a rate steeper than what these firms had been lobbying for.

Operators offering satellite-based broadband internet services in urban areas would have to shell out an additional Rs 500 per subscriber, annually, TRAI said in its recommendations to the Department of Telecommunications (DoT).

No additional levy would be applicable for services in rural areas.

The levy recommended by TRAI is steeper than what satcom companies have been lobbying for. Elon Musk’s Starlink and Amazon Inc’s subsidiary Kuiper Systems had during consultations with the TRAI urged it to keep spectrum charge below 1 per cent of AGR with no other charge.

The Telecom Regulatory Authority of India (TRAI) recommended that satellite broadband spectrum be allotted for five years, which can be extended by another two years.

The satellite spectrum pricing as a percentage of AGR is for both non-geostationary satellite orbit (NGSO) and Geostationary satellite orbit (GSO) based fixed-satellite service (FSS) and mobile satellite service (MSS).

NGSO refers to satellites occupying either a low-earth orbit (LEO) or medium-earth orbit (MEO). Unlike geostationary GSO satellites, LEO and MEO satellites do not occupy a stationary position but move in relation to the Earth.

TRAI said the 4 per cent of AGR spectrum charge would be subject to a minimum annual spectrum charge of Rs 3,500 per MHz.

AGR is used to calculate the revenue that telecom companies share with the government in the form of spectrum usage charges and license fees.