Elon Musk’s Starlink may face spectrum tax in India, raising service costs

The Telecommunications Regulatory Authority of India (Trai) is finalising the rates, tenure, and taxes of satellite range. “Conversations within Trai are thought to have actually pertained to the conclusion that there is a requirement to mandate SUC for satcom players, because they will certainly be allotted range administratively at a pre-determined rate,” the resource included.

Resources told ToI, Starlink, which is readied to obtain telecommunications airwaves through management allowance under the new telecom legislation passed in December 2023, might have to pay around 3% SUC on its modified gross earnings from the nation.

Trai is anticipated to submit its suggestions on satcom range allocation quickly. These will be examined by the Division of Telecommunications (DoT), which may look for further explanations before referring the matter to the inter-ministerial Digital Communications Payment (DCC). Complying with DCC’s approval, the problem will be put prior to the Closet.

Starlink may encounter a spectrum usage charge (SUC) in India, possibly enhancing expenses for the firm. This tax, along with the existing 8% permit charge, might be around 3% of modified gross earnings. The Telecommunications Regulatory Authority of India (Trai) is wrapping up the specifics of satellite spectrum tenure, pricing, and taxes, with referrals expected quickly.

Sources stated SUC would also apply to other satellite operators, including Eutelsat OneWeb, in which Airtel promoter Sunil Mittal holds a stake, and Reliance Jio-SES, the satellite communications joint venture in between Jio Platforms and Luxembourg-based SES.

Starlink is likely to be based on a range usage cost (SUC) in India, a levy that had actually been ditched for earthbound network providers such as Dependence Jio, Airtel, and Vodafone Concept a few years earlier, ToI reported citing resources. If enforced, the tax obligation will certainly enhance prices for the Elon Musk-led satellite interactions company in India.