TRAI Rejects DoT Proposal to Hike Satellite Spectrum Fee to 5%; Urban Rate Remains ₹500

India’s satellite broadband landscape is inching closer to a definitive pricing structure as the Telecom Regulatory Authority of India (TRAI) has repeated its recommendation to impose a 4% adjusted gross revenue (AGR) spectrum charge on satcom players.  

The regulator’s response comes after the Department of Telecommunications (DoT) sought modifications that TRAI has now declined to accept on key financial matters. 

TRAI Maintains 4% AGR Position 

TRAI’s latest communication reaffirms its original proposal: satellite-based communication companies should pay a 4% AGR levy, countering the DoT’s suggestion of a 5% charge with a 1% discount for services in hard-to-connect regions.  

The regulator also upheld its recommendation for an additional ₹500 per urban customer, intended to reduce the competitive edge non-geostationary orbit providers enjoy over geostationary satellite operators. 

Alongside pricing, TRAI dismissed DoT’s concerns about implementing rural–urban classification, stating that geolocation binding already enables accurate identification of user terminal locations. It also declined the proposal to retain BSNL’s 1% AGR charge, saying such an exception would be unfair to other players. 

Subsidy, Spectrum and Market Readiness 

TRAI once again pushed for targeted subsidies to offset the high one-time cost of satellite user terminals in rural and remote regions.  

While DoT highlighted limitations under the Digital Bharat Nidhi framework, the regulator urged the government to explore alternative approaches, including third-party implementation. 

With spectrum pricing still awaiting Cabinet approval, India’s satcom market remains in preparation mode. Starlink, Eutelsat OneWeb and Jio Satellite have secured key permissions, while Amazon's Project Kuiper is awaiting final clearance. 

Read More: Airtel and Google Partner to Bring RCS Messaging to India! 

Conclusion 

TRAI’s position sets the stage for clearer pricing norms as India prepares for a new wave of satellite broadband services. The Cabinet’s final call will determine how quickly the sector scales. 

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