Summary:
The Department of Telecommunications (DoT) has finalized that satellite communication services in India will pay a 5% spectrum usage fee (SUF) on adjusted gross revenue (AGR), higher than TRAI’s earlier 4% suggestion. This directly impacts operators like Starlink, OneWeb, and Amazon Kuiper. The move aims to create a simpler, auditable pricing model while avoiding complex differential charges across urban and rural areas.
The DoT has officially set the spectrum usage fee for satellite-based communication services at 5% of AGR, revising TRAI’s earlier recommendation of 4%. This fee structure will apply to all satcom players, including global operators such as Starlink, OneWeb, and Amazon Kuiper as they prepare to expand services in India. The DoT explained that the increase is intended to ensure a straightforward, uniform, and easily auditable pricing mechanism, as it found the idea of differentiated fees for urban and rural regions impractical and overly complex to implement.
The department also turned down TRAI’s proposal to subsidize satellite terminal equipment using the Digital Bharat Nidhi (DBN). According to DoT, the DBN currently lacks any direct mechanism to disburse device-level subsidies. While the government continues to prioritize rural and remote digital connectivity, it has chosen to maintain DBN funding strictly for ongoing rural broadband initiatives rather than introduce new subsidy channels for satellite terminals.
Under the revised framework, the government will allocate spectrum administratively for fixed-site data and internet services, but operators must seek new approvals for any additional capacity, which may result in fee revisions. Satcom providers will also be required to obtain network capacity clearance from IN-SPACe before the DoT assigns spectrum. Notably, mobile connectivity through satellites is still not permitted under current policy, and any future expansion in service scope will prompt a fresh review. The final policy will take shape after TRAI submits its updated recommendations, and the cabinet completes its evaluation.
