Companies may have to pay four percent of revenue on satellite services, TRAI recommends
TRAI: TRAI said that spectrum allocation for satellite will be only for five years, which can be extended by two years. Starlink had sought a minimum validity of 15 years of spectrum. According to the recommendation, an authorization fee of 8 percent will also be applicable, which is applicable to telecom operators and fixed line internet providers.
India telecom regulator, TRAI, on Friday suggested charging four percent of yearly revenues as spectrum usage fees from satellite communication service provider companies such as Elon Musk's Starlink. Apart from that, an annual charge of Rs 500 per urban consumer must also be paid. These are the first set of recommendations that have been proposed ahead of Elon Musk's arrival in India through his company Starlink.
The Telecom Regulatory Authority of India (TRAI) said, the total bandwidth available on the satellite network is very low. Spectrum can be shared among satellite providers. TRAI Chairman Anil Kumar Lahoti said, this is a complementary service. There is no solid basis to investigate this issue in terms of competition. Starlink will now have to acquire spectrum under the terms suggested by TRAI. Under this, it will have to pay a minimum fee of Rs 3,500 per MHz for the spectrum used.
TRAI said that spectrum allocation for satellite will be only for five years, which can be extended by two years. Starlink had sought a minimum validity of 15 years of spectrum. According to the recommendation, an authorization fee of 8 per cent will also be applicable, which is applicable for telecom operators and fixed-line internet providers. Due to these fees and surcharges, the cost of Starlink services is likely to exceed Rs 4,200.
