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HinduBusinessLine

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Proposed satcom services fees may pose a hurdle for small entrants

  • TRAI has proposed levying 4% of Adjusted Gross Revenue for Geostationary Orbit and non-GSO services, along with an additional charge of ₹500 per subscriber per annum in urban areas for simplification and ease of doing business.
  • The proposed fees may pose challenges for small satellite communication operators entering the market, as they may struggle to handle the spectrum fees and license contributions compared to larger players like OneWeb, Starlink, and Kuiper.
  • TRAI's recommendation for AGR-based charging aims to benefit small operators and create a healthy market structure, although stakeholders are still deliberating on these proposals.
  • Satcom services are expected to be priced higher than existing terrestrial mobile and fixed-line services due to satellite infrastructure costs, which could impact initial commercial success, especially in urban and corporate sectors.

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