DoT Approves Satellite Broadband Services in India

Satellite broadband services in India have moved a step closer to commercial launch after the Digital Communication Commission (DCC) approved several TRAI recommendations on spectrum allocation, as per The Business Standard news report. 

The decision sets the spectrum usage charge at 5% of annual adjusted gross revenue (AGR), with a lower 4% charge for services in rural and remote areas. Spectrum will be assigned for five years, with a possible two-year extension. 

OneWeb, Starlink and Jio Satellite in Line 

The decision could clear an important hurdle for Eutelsat OneWeb, SpaceX's Starlink and Reliance Jio's Jio Satellite, all of which already hold Global Mobile Personal Communication by Satellite licences. 

Amazon Leo is still waiting for approval for its licence. As per the report, Starlink and Amazon Leo would also need FDI clearance, while OneWeb and Jio Satellite would not. 

Final Approvals Still Pending 

As per the report, DCC's decision does not by itself allow satellite operators to start commercial services. 

The recommendations will need ratification by an inter-ministerial panel and then Cabinet approval. Security clearances and, where applicable, FDI approval will also be required. The government still has to decide the pricing of spectrum that will be allocated administratively. 

TRAI's Earlier Proposal Was Different 

TRAI had recommended a 4% AGR charge along with an annual ₹500 fee per urban subscriber for NGSO satellite services. It had also proposed support for user terminals in rural and remote areas through the Digital Bharat Nidhi fund. 

Those proposals were not accepted by DoT, with the absence of implementation frameworks cited as a key reason. 

Read More: L&T Share Price in Focus; Wins Large Offshore Order from ONGC! 

Conclusion 

The DCC approval gives satellite broadband operators greater clarity on spectrum charges and tenure in India. Commercial services, however, still depend on the remaining government approvals and spectrum pricing decision. 

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