New Delhi: The Department of Telecommunications is likely to levy a five per cent adjusted gross revenue (AGR) charge as a usage fee for satellite communication spectrum, diverging from the 4 per cent rate recommended by the Telecom Regulatory Authority of India.
Officials indicated that the telecom department has reviewed Trai’s clarifications on the matter and decided to proceed with a five per cent AGR levy, while offering a one per cent concession to operators serving remote and difficult-to-connect regions. The government believes a flat rate would be easier to implement compared to differentiated pricing structures.
The proposal is expected to be placed before the Digital Communications Commission, the apex decision-making body within the telecom department, in the coming weeks. Once cleared, the final pricing framework will require approval from the Union Cabinet.
The decision will affect companies planning to roll out satellite broadband services in India, including Starlink, Eutelsat OneWeb, Project Kuiper and Jio Satellite Communications.
Trai had reiterated its earlier recommendation of a four per cent AGR fee and suggested an additional Rs 500 charge per urban user to balance competition between geostationary and non-geostationary satellite operators. However, the telecom department expressed concerns about the practical challenges of classifying users by location.
The department has also rejected Trai’s suggestion to subsidise satellite user terminals for rural subscribers through public funds.
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