TRAI releases Recommendations for Satellite-Based Services

• 10 May 2025
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On 9 May, 2025, the Telecom Regulatory Authority of India (TRAI) released Recommendations on ‘Terms and Conditions for the Assignment of Spectrum for Certain Satellite-Based Commercial Communication Services’. These recommendations followed a request from the Department of Telecommunications (DoT), made through a reference dated 11 July 2024. 

The DoT, citing Section 4 and the First Schedule of the Telecommunications Act 2023 and invoking Section 11(1)(a) of the TRAI Act 1997, asked TRAI to provide recommendations on the terms and pricing of spectrum allocation. 

Why did TRAI Release New Recommendations?

The objective was to ensure a level playing field between satellite-based and terrestrial access services for the following:

• NGSO-based Fixed Satellite Services (FSS) offering data and internet connectivity, while considering services from GSO-based systems.

• Mobile Satellite Services (MSS) using either GSO or NGSO satellites to deliver voice, text, data, and internet services.
  
  

To facilitate stakeholder input, TRAI issued a consultation paper on 27 September 2024, outlining 21 issues for discussion. The original deadlines for submitting comments and counter-comments were 18 October and 25 October 2024, respectively. Due to stakeholder requests, these were extended to 25 October and 1 November 2024.

In total, 30 stakeholders submitted comments and 12 provided counter-comments. TRAI also held a virtual open house discussion (OHD) on 8 November 2024 to further gather input.

Key Recommendations of TRAI

Based on the feedback and detailed analysis, TRAI finalized its recommendations. Key highlights include:

• For NGSO-based FSS providing data and internet services, spectrum in the Ku, Ka, and Q/V bands should be considered for both user and feeder links.

• For GSO/NGSO-based MSS offering voice, text, and internet services, spectrum in the L and S bands should be used for user links, and the C, Ku, Ka, and Q/V bands for feeder links.

• Spectrum assignments should have a validity of up to five years, with a potential extension of two additional years based on market needs.

• The pricing and terms recommended should remain effective for five years from the date of policy notification by the Central Government, and may be extended by up to two years. Any revisions made thereafter should apply to all authorised entities, including current operators.

• To manage interference, relevant ITU-RR provisions should be enforced across all authorised entities.

• Spectrum in high-frequency bands (C, Ku, Ka, Q/V) designated for shared use must be assigned with the condition that all licensed entities coordinate in good faith.

• The Government, with TEC’s assistance, should explore creating a framework for spectrum sharing, including parameters like EPFD. A fallback provision for spectrum splitting may be introduced, inspired by the FCC’s approach, if coordination fails.

• Coordination should also be mandated for the establishment and operation of satellite earth station gateways.

• DoT and TEC should study and, if necessary, define minimum coordination distances between earth station gateways using the same frequencies.

• In bands already identified for IMT, such as 42.5–43.5 GHz, satellite gateways should be permitted only in remote or uninhabited areas, on a case-by-case basis.

• To ensure timely infrastructure deployment, gateways should be set up within 12 months of receiving permission.

• Authorised entities should have the option to voluntarily surrender their spectrum rights before the end of the licence period, subject to specific conditions.

• Once the Central Government grants in-principle clearance, spectrum allocation must occur within 30 days of the application. If there are objections, they must be communicated within this timeframe for necessary follow-up.

Proposed Spectrum Charges

TRAI has proposed the spectrum charges as follows:

Spectrum Payment Terms for Satellite-Based Services

• Spectrum charges based on Adjusted Gross Revenue (AGR) must be paid quarterly in advance, within 15 days from the start of each quarter.

• Minimum Spectrum Charges are to be paid upfront at the time of spectrum allocation and subsequently at the beginning of each year. Any quarterly or annual reconciliation of dues will be made against this minimum annual charge.

• NGSO-based FSS providers are required to pay quarterly subscriber-based charges calculated as 125 × Nu, where Nu is the number of urban subscribers recorded at the end of the previous quarter.

• The Government may explore the possibility of offering subsidies for NGSO-based FSS user terminals targeted at unserved or underserved user groups in rural and remote areas.
  
  

The full recommendations are available on the TRAI website at www.trai.gov.in. For further information or clarification, contact Shri Akhilesh Kumar Trivedi, Advisor (Networks, Spectrum and Licensing) @ TRAI, at +91-11-20907758.

Sources:

• TRAI
• PIB