Home / Business and Economy / TRAI Rejects BSNL's Special Spectrum Rate
TRAI Rejects BSNL's Special Spectrum Rate
14 Dec
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.
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.
TRAI acknowledged that its earlier 2018 recommendation for a 1% levy was based on a market context where BSNL was the sole operator. The current market evolution, with expanding satellite applications like IoT and aggregator devices, necessitates a revised, market-reflective pricing strategy. This foundational policy shift promises greater regulatory clarity for new entrants, although its financial impact will unfold over time.
