Why did TRAI reject BSNL's special spectrum charge proposal?

TRAI rejected the proposal because a lower charge for BSNL would be discriminatory to other satellite service providers.

How does TRAI's decision affect the satellite communications market?

The decision promotes technology and ownership neutrality, creating a more competitive and rules-based market for new players.

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TRAI Rejects BSNL's Special Spectrum Rate

Q: What is the new proposed spectrum charge rate in India?

TRAI proposed a uniform spectrum charge of 4% of adjusted gross revenue (AGR) for all satellite service providers.

14 Dec

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Summary

TRAI denied BSNL preferential spectrum charges for satellite services.
A uniform 4% AGR spectrum charge proposed for all satellite providers.
The decision promotes technology and ownership neutrality in telecom.

TRAI Rejects BSNL's Special Spectrum Rate

The Telecom Regulatory Authority of India (TRAI) has firmly rejected the Department of Telecommunication's (DoT) proposal to maintain a reduced spectrum charge of 1% for BSNL's satellite-based services. This move signals a significant strengthening of competitive neutrality within India's telecommunications sector. TRAI has instead proposed a uniform spectrum charge of 4% of adjusted gross revenue (AGR) for all satellite service providers, emphasizing a regulatory approach that is neutral to both technology and ownership.

This decision marks a departure from preferential treatment for state-owned operators, a stance TRAI justified by highlighting that such concessions would be discriminatory given the presence of multiple mobile satellite service (MSS) providers. The regulator dismissed arguments that BSNL's services warrant lower charges due to their strategic importance, noting that other telecom operators also provide services for strategic purposes. This reinforces a rules-based regulatory framework and narrows the scope for exemptions.