According to sources, Starlink is likely to be subject to a band duty in India, which was previously abolished for earth networking services like Reliance Jio, Airtel, and Vodafone Idea a few years ago. If the income is implemented, Elon Musk’s satcom opportunity in India will see an increase in service costs.
The British satellite significant will face yet another setback as a result of the move, which is negotiating stringent compliance requirements relating to internet suspension and interception.
According to sources, Starlink will have to pay a 3 % spectrum usage charge ( SUC) on its adjusted gross income from the nation in accordance with the new Telecom Law passed in December 2023. This will be done through administrative allocation.
SUC will remain valid because, according to one of the sources, “final rates are being worked upon” because variety will be “administratively assigned” to dish operators rather than auction.
This will require satcom participants to pay an additional fee for variety in addition to the 8 % license fee that all telcos will have to pay. Although this is still being discussed, it may even be higher than 3 %.
The regulator Trai is currently finalizing the issue involving the prices of dish spectrum, its tenure, and another taxation. According to the cause,” Debate within Trai are believed to possess reached the conclusion that a mission for SUC for satcom people will be administered officially at a predetermined price.”
The department of telecom ( DoT ) will take into account these recommendations when Trai makes its recommendations on the issue of satcom spectrum allocation in the near future. DoT may make additional inquiries about the subject with distinct references after the recommendations are analyzed. DoT will contact the inter-ministerial Digital Communications Commission (DCC ) once satisfied with the situation. It will be taken up by the Cabinet after DCC’s acceptance.
The government made the decision to eliminate SUC for speed that had been auctioned on various frequencies after Sept. 15, 2021, in June 2022.
SUC will also apply to other satellite operators, such as Reliance Jio-SES ( satcom JV between Jio Platforms and Luxembourg-based SES ), and Eutelsat One Web ( where Airtel promoter Sunil Mittal has a stake ).
