/vnd/media/agency_attachments/bGjnvN2ncYDdhj74yP9p.png)
/vnd/media/post_banners/wp-content/uploads/2020/10/Moon-satellite.jpg)
As per a senior government official, the DoT is set to back the TRAI's call to reduce spectrum usage charges for VSAT-based satcom operators. The department is looking to widen the proliferation of satellite communication services.
Good News for Satcom Operators
The official, cited by ETTelecom, said that DoT is likely to endorse cutting the SUC to 1% of AGR. Notably, the SUC is at 4% currently. Interestingly, OneWeb and SpaceX's Starlink are preparing to launch their satellite broadband services as early as June 2022.
One more person in the know played down the loss of revenue caused by the deduction. They said, “any initial revenue loss in case of a cut in SUC would purely be notional as there’s enough elasticity in the market to offset such loss... government revenues would actually grow with all the satellite constellations from OneWeb and SpaceX set to come into play”.
Incidentally, TRAI recommended that DoT should lower the SUC for VSAT services to 1% of AGR. TRAI also called to exclude licensed revenue from non-satellite-based services.
DoT looks likely to accept the regulator's call to allow VSAT satcom service providers. The satcom providers can also offer satellite backhaul connectivity to telcos. This will also ensure uninterrupted mobile broadband coverage to consumers in rural and far-flung regions. Now, the decision lies with the DCC, who will take the same at their next meeting.
Telcos can use VSAT solutions to provide connectivity in regions where there isn't enough infrastructure available on ground, if the decision is favorable.
Current Satcom Situation in India
Right now, satcom operators with VSAT permits can't offer satellite backhaul links to telcos. Only NLD licensees can do so. However, most VSAT service providers don’t have NLD permits.
Notably, these VSAT service providers have over 2,50,000 terminals across the country. Therefore, these service providers can provide satellite backhaul connectivity to mobile networks, as TRAI pointed out to DoT. This move will boost mobile and Wi-Fi-based broadband penetration in rural India and bridge the digital divide.