New Delhi: The Department of Telecommunications (DoT) is finalising rules for allocating satellite spectrum, with a draft expected to be released shortly for public and stakeholder consultation, officials familiar with the matter said.
Administrative Allocation Under New Telecom Act
The new framework is being shaped under the Telecommunications Act, under which satellite spectrum will be allocated administratively, not through auctions. This marks a continuation of previous practices, but with more defined procedures and an updated legal foundation. The spectrum is likely to be distributed on a first-come-first-served (FCFS) basis, which DoT believes is suitable given the shared nature of satellite spectrum.
Shift to Authorisation Regime
While VSAT operators earlier received spectrum administratively under licensing norms, the new regime will operate under a formal authorisation model. The DoT’s licensing and satellite divisions are currently working on defining the modalities, especially around interference management, which remains a key operational challenge under a shared spectrum model.
Pricing Linked to AGR, Approval Needed
The Digital Communications Commission (DCC), the apex decision-making body within DoT, will soon review the Telecom Regulatory Authority of India’s (TRAI) recommendations on spectrum pricing. TRAI has suggested a 4% adjusted gross revenue (AGR) fee for satellite spectrum assigned for five years. While the rules on allocation do not need Cabinet approval, the pricing mechanism will require a green light.
Stakeholders Await Clarity
Companies such as Eutelsat OneWeb and the Jio-SES joint venture, which have obtained all security clearances, are awaiting the final allocation to commence commercial operations. Meanwhile, Starlink, which received a letter of intent (LoI) in May, must still comply with security protocols before being allotted a test spectrum.
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