DoT Re-evaluates Satcom Spectrum Pricing

DoT re-evaluates Trai's satcom spectrum pricing, addressing Reliance Jio's concerns and aiming for future-proof guidelines. Considers extra charges and Digital Bharat Nidhi funds. Satcom market share restricted in the near term.

The DoT is re-evaluating Trai’s satcom range prices recommendations, despite Reliance Jio’s issues that they are also low. While DoT believes satcom’s market share will be restricted in the near term, they aim to establish reasonable guidelines for future development. The evaluation consists of additional charges for city individuals and using Digital Bharat Nidhi funds.

Satcom Market Share Concerns

While the division will certainly be asking Trai to reassess the proposals, it feels that in the close to medium term, satcom suppliers will not allow sufficient in terms of customers to complete or consume into telcos’ fixed broadband earnings.

“The satcom service providers can have around 2-3% share in the taken care of wired broadband market in the close to tool term basis the ability they have filed with room regulatory authority IN-SPACe,” stated an official on problem of privacy.

Proposals for Metropolitan Consumers

The propositions going back consist of billing metropolitan consumers an extra Rs 500 for satellite broadband link and the annual range charge that a satcom firm needs to pay to the federal government. In regards to rates, the division likewise would like to know exactly how to treat internet-of-things gadgets in regards to range fees.

Trai’s Spectrum Allocation Recommendations

Trai in its suggestions on the allowance of satcom range had actually proposed the airwaves be offered administratively for a period of five years, to be prolonged by another 2 years. On rates, the regulatory authority had actually suggested charging 4% of adjusted gross profits (AGR) as the fee, without any in advance settlement.

Digital Bharat Nidhi Funds

Other proposals that were referred back consist of using the Digital Bharat Nidhi (DBN) funds to subsidise satellite terminals. The regulatory authority had actually proposed to pay out aid from the DBN, either as a round figure repayment or in instalments, to fund satellite terminals that set you back Rs 20,000- 50,000 in a bid to increase adoption.

According to an evaluation done by DoT based on the existing capability filed with space regulator, in near and medium term, satcom can offer around 1.2 million broadband links while there are already 44 million fixed broadband customers in India.