Satcom India: TRAI Proposes Spectrum Charges At 4% Of Adjusted Gross Revenue, A License Fee Might Also Be Applicable

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TL; DR
  • The spectrum charges will be applicable to both geostationary orbit (GSO) and non-geostationary orbit (NGSO) satellites, including low-earth orbit (LEO) and medium-earth orbit (MEO) systems.
  • Furthermore, the government could subsidize the satellite user terminals in rural areas to support the initial adoption.
  • Last but not least, there’s an 8% license fee (as part of the country’s telecom licensing norms). While the fee is also applicable to telecom providers, it can increase the financial burden on satcom companies.

The Telecom Regulatory Authority of India has proposed that satellite-based telecommunications companies (like Starlink) should pay 4% of their adjusted gross revenue (AGR) as spectrum charges to the Indian government. This is much higher than what the satcom companies, including Elon Musk’s Starlink and Amazon’s Kuiper Systems, had initially lobbied for – 1% of the AGR.

Spectrum Charges: 4% Of Annual Gross Revenue

The spectrum charges will be applicable to both geostationary orbit (GSO) and non-geostationary orbit (NGSO) satellites, including low-earth orbit (LEO) and medium-earth orbit (MEO) systems. In addition to the spectrum charges, an annual charge of Rs. 3,500 per MHz has also been proposed to prevent hoarding (which could add another Rs. 70 lakh expense to satcom’s yearly operation costs).

Also Read: Top Indian Safety Apps & Websites for News & Alerts on India-Pakistan Tensions

Satcom Providers To Pay Custom Acquisition Fee In Urban Areas

The regulator has also proposed a Rs. 500 per subscription customer acquisition fee (yearly) for urban subscribers. However, no such fee applies to rural subscribers. From what it looks like, the fee aims to encourage satcom providers to focus on rural and remote regions where conventional terrestrial networks aren’t viable.

Furthermore, the government could subsidize the satellite user terminals in rural areas to support the initial adoption. Adopting a cautious approach to the evolving satcom market, TRAI recommends that the satcom spectrum should only be allocated for five years (initially), extendable by another two years.

Also Read: India-Pakistan Conflict: 10 Memes that will make you ROFL

License Fee, Along With Other Charges, Could Make Satcom Services Expensive

Last but not least, there’s an 8% license fee (as part of the country’s telecom licensing norms). While the fee is also applicable to telecom providers, it can increase the financial burden on satcom companies, as they also have to pay the spectrum charges at 4%, the urban subscription fee, and the annual charge.

With higher operation costs in the subcontinent, satcom service providers like Starlink (which recently received a Letter of Intent from the regulatory authority) might pass on the costs to consumers, increasing the price of their services. While this could be a way to restrict the service to the required areas, it will surely impact the satcom providers’ business plans and profitability prospects.

Also Read: 5 Life-Saving Gadgets To Keep Handy As India-Pakistan Conflict Intensifies

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Shikhar MehrotraShikhar Mehrotra
Shikhar Mehrotra is a seasoned technology writer and reviewer with over five years of experience covering consumer tech across India and global markets. At Smartprix, he has authored more than 1,700 articles, including news stories, features, comparisons, and product reviews spanning automobiles, smartphones, chipsets, wearables, laptops, home appliances, and operating systems. Shikhar has reviewed flagship devices such as the iPhone 16, Galaxy S25+, and Sennheiser HD 505 Open-Ear headphones. He also contributes regularly to Smartprix’s growing automotive section.

With a deep understanding of both iOS and Android ecosystems, Shikhar specializes in daily tech news, how-to explainers, product comparisons, and in-depth reviews. His DSLR photography in product reviews is recognized as among the best on the team.

Before joining Smartprix, Shikhar wrote for leading publications including Forbes Advisor India, Republic World, and ScreenRant. He holds a Bachelor of Arts in Journalism and Mass Communication from Amity University, Lucknow.

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