TRAI sets 4% AGR spectrum fee for satcom firms like Starlink, OneWeb; dismisses level-playing field concerns

“The annual spectrum charges should be paid quarterly within 15 days of the start of each quarter,” TRAI stated, adding that minimum charges must be paid upfront during spectrum allocation and at the beginning of every year.

Currently, VSAT operators and BSNL pay 4% AGR as spectrum fees. TRAI said continuing this approach balances the interests of existing and upcoming satcom players while encouraging sustainable sectoral growth.

The regulator also laid out a five-year spectrum assignment tenure with a provision for a two-year extension. This falls short of industry requests for a 20-year validity period.

TRAI proposed a minimum spectrum charge based on the amount allocated to prevent spectrum hoarding and improve interference management. “This will incentivize operators to request only what they need and promote timely rollout of services,” the regulator said.

These guidelines come shortly after the Department of Telecommunications (DoT) issued a Letter of Intent to Starlink, clearing a path for its commercial rollout in India.

Eutelsat-OneWeb and Jio-SES have already secured the necessary GMPCS, VSAT, ISP licenses and IN-SPACe authorisation.

No level-playing field issues: Chairman

Addressing concerns around market fairness, TRAI Chairman Anil Kumar Lahoti emphasized the limited capacity of satellite networks compared to terrestrial broadband, rejecting arguments that satcom services would compete directly with terrestrial mobile offerings.

He argued that the two services are complementary and there is no competition. “A city like Delhi has around 50 lakh broadband connections, whereas a single satellite constellation can support only about 20,000,” Lahoti said. “This disparity will persist for at least the next five years. Satellite services will remain complementary—not competitive—to terrestrial networks.”

The chairman also said the recommendations are finalised after thorough review and consultations with the industry and keeping international proactive, adding, “There is no loss (to telcos) because of these recommendations."

Lahoti said Trai does not oversee satellite security; it is handled by the DoT in consultation with the Ministry of Home Affairs.

“…very recently, they have come out with a very detailed policy on security for the satellite communication services, which has taken care of all these concerns which had been experienced in the past,” he added.

TRAI also recommended that the government consider subsidies for fixed user terminals serving rural and remote regions. The specific subsidy amount would be left to the government’s discretion.
To further facilitate satellite services, TRAI advised shared spectrum allocation in higher frequency bands—C (4–8 GHz), Ku (10–15 GHz), Ka (17–31 GHz), Q/V (33–75 GHz), and L&S (1–4 GHz). It also suggested that operators coordinate spectrum usage in good faith.

Moreover, for spectrum already earmarked for telecom services, such as the 27.5–28.5 GHz and 42.5–43.5 GHz bands, TRAI recommended that satellite earth station gateways be established only in uninhabited or remote locations to avoid interference with terrestrial networks.

“The DoT should define exclusion zones for co-existence with IMT services. Satellite gateways should be installed within 12 months of the company receiving permissions,” the regulator added.

Indian Space Association (ISpA) said that the Administrative Allocation of Satellite Spectrum enables shared access, fosters competition, and ensures maximum efficiency in spectrum utilization-objectives critical for the growth of India’s satellite ecosystem and bridging the digital divide.

“The proposed framework for spectrum charges in the TRAI recommendations balances the need for government revenue with the imperative to keep satellite services affordable and accessible along with a level-playing field,” said Lt. Gen. AK Bhatt (Retd.), Director General of ISpA.