The Telecom Regulatory Authority of India (Trai) is unlikely to budge on its recommendations to the government on satcom spectrum charges after telecom industry body Cellular Operators’ Association of India (COAI) requested a review.

Industry sources said that a review is unlikely as all stakeholders were given adequate consultation opportunities to represent their views during the consultation process to set terms and conditions for the assignment of spectrum for satellite-based commercial communication services.

In its recommendations, Trai had fixed a spectrum charge of 4 per cent of Adjusted Gross Revenue (AGR) for both non-geostationary satellite orbit (NGSO) and geostationary satellite orbit (GSO) based fixed satellite services and mobile satellite services. An additional charge of ₹500 per subscriber will also be applicable in urban areas or NGSO service providers, while exempting rural areas from this additional charge.

With the set stage for satcom players, including Elon Musk’s Starlink, to launch their services in India, COAI has claimed that Trai’s recommendations are based on incorrect assumptions and that their implementation will hit the sustainability of terrestrial services, which form the foundation of India’s digital infrastructure.

COAI has urged the Department of Telecom (DoT) to form a committee to “undertake a comprehensive review of the recommendations in their entirety, ensuring the process is guided by principles of fairness, transparency, and equity and also give an opportunity to TSPs (telcos) to share their views regarding the same”.

The industry body argued that the recommendations provide a regulatory advantage to commercial NGSO satellites against terrestrial broadband service providers and, if accepted by the DoT in their present form, will undermine competition and create a non-level playing field.

COAI further said that Trai’s recommendations do not appear to address the lack of a level playing field between terrestrial service providers and satellite operators serving the same market.

“The said recommendations are based on incorrect assumptions and implementation of these recommendations will impact the sustainability of terrestrial services that form the foundation of India’s digital infrastructure,” the association had said.

“It is well known and Trai would surely be fully aware that with the advent of next-generation NGSO broadband services — including low Earth orbit (LEO) and medium Earth orbit (MEO) constellations — satellite services are now capable of directly substituting and competing with terrestrial fixed and mobile broadband networks,” COAI further said.