SIA-India Petitions TRAI to Ease Satellite Services Entry

At a high-level virtual meeting with TRAI, SIA-India asked the TRAI Chairman to remove barriers for the entry of satellite services.

SIA-India for Easy Entry for Satcom Companies

In the meeting, TRAI Chairman Dr. PD Waghela, TRAI Secy N Raghunandan and other senior TRAI officials were present. SIA-India said that new generations of very high throughput satellites enhance broadband connectivity throughout the country. The forum said that this includes connecting 5,000 Gram Panchayats that otherwise would not be connected by conventional solutions.

According to Anil Prakash, Director General, SIA-India, "the Satcom industry, though at its nascent stage in India, has the potential to revolutionize connectivity in areas which are hitherto unconnected or cannot be connected by terrestrial mobile or fiber".

He added, "India is losing out on the fast-paced digital development envisaged by the Hon’ble Prime Minister because the Satcom sector does not have a level playing. We need regulations that are industry as well as consumer-friendly."

In the submission SIA-India stressed that the Satcom industry needs light-touch regulations that will aid in ease of doing business. The sector requires direct engagement and open market access. The industry body said this will allow competition to drive down price. SIA-India said that sector is facing limitations in acquiring foreign capacity by national service providers. It said that that is both expensive and unsustainable in the long term.

SIA-India Asks for Changes in Tax Structure, Spectrum Policy

India has sought a review of the tax structure of the industry. In terms of taxation, the industry is hard hit with many layers of taxes adding up to almost 50%. These include GST, Rev Share, Multiple charges by DOT, and DOS, Withholding tax, among others.

SIA-India has also pointed out that a percentage of USO funds are available to MNOs for expanding connectivity 'into rural markets'. As such, it has asked for satcom industry to have access of the same, as well. Since satcom will primarily serve rural areas, this move makes all the more sense.

On spectrum issue, SIA-India has urged TRAI to maintain satellite spectrum certainty. SIA-India also said that ITU hasn't identified Ka-band 27.5-29.5 GHz band for IMT/5G. At WRC-19, ITU excluded this band since satcom companies extensively use this band for operations. Further, billions of dollars have been invested in over 100+ Ka-band satellites to serve India and the Asia-Pacific region.

TRAI has taken cognizance of the issues raised by SIA-India. TRAI has also assured the participants that the Regulator is aware of the challenges faced by the Satcom industry and is looking for means of addressing the same.