TRAI: Satellite internet will not be cheap in India, 4% spectrum fee will be charged from companies

The Telecom Regulatory Authority of India, or TRAI, has suggested new licenses and fees for businesses offering satellite internet services in India, including Elon Musk's Starlink. These TRAI proposals can provide a new direction to the growth of satellite broadband services in India, but are also likely to raise the cost of businesses.

TRAI has suggested to the government that satellite internet service providers must pay a spectrum usage charge of 4% of their annual gross revenue (AGR). This charge is to be imposed upon businesses offering satellite broadband services in India, like Starlink, OneWeb, Amazon's Project Kuiper, etc.

Apart from this, TRAI has also recommended that satellite internet companies providing services in urban areas should be charged an additional fee of Rs 500 per customer per year. This fee is probably suggested to keep the services affordable in rural and remote areas to promote digital inclusion.

TRAI has recommended fixing the validity period of satellite spectrum license to 5 years, which can be extended by another 2 years if needed. This licensing system will provide clarity to companies for long-term planning and investment.