Satcoms' mobility services may see regulatory hurdle

New Delhi: Weeks after securing a licence and satellite authorisation, Elon Musk's Starlink may have to tackle regulatory challenges with the Digital Communications Commission (DCC) - the top inter-ministerial body that decides on telecom matters - asking regulator Trai to consider if spectrum prices should be raised when satellites are used for mobility services and not just for fixed broadband.

Last May, Trai had announced extensive recommendations for the satcom players, including a 4% AGR, an annual fee of Rs 3,500 per MHz of spectrum, and an additional Rs 500 per urban subscriber for satcom.

The DCC, however, believes that there is a need to review the recommendations, especially for spectrum that is used for mobility.

Explaining the rationale of the decision, a top source told TOI, "The premise of Trai's recommendations for an annual fee of Rs 3,500 per MHz seems to be that the airwaves would be used only for fixed broadband services. However, with companies like Starlink looking to work on technologies such as direct-to-device that will offer internet connectivity on the go, there may be a need to re-look the prices. Mobility on satcom will mean that space companies will directly and effectively compete with terrestrial operators such as Reliance Jio and Airtel."

Among other issues that were raised was the matter of identifying urban and rural areas. "While Trai has asked for an additional Rs 500 per urban subscriber fee, it is felt that it will be difficult to demarcate urban and rural areas. This was one of the issues raised," the source said.



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