DoT Issues Draft Rules for Administrative Spectrum Assignment

The department of telecommunications (DoT) has issued draft rules for administrative assignment of spectrum to state-run entities such as BSNL and MTNL, law enforcement agencies as well as private firms in the satellite and broadcasting segment including very small aperture terminal (VSAT) players and teleport operators. The rules will be applicable when spectrum is assigned administratively or without auctions to entities for specific purposes under Schedule 1 of Telecommunications Act.

For satellite spectrum, the draft rules, however, apply only to firms using a geostationary orbit (GSO) satellite such as traditional players offering VSAT, teleport or broadcasting services. The rules won't be applicable to non-GSO players such as Starlink, Eutelsat OneWeb and Amazon Leo. "Spectrum assignment rules for NGSO players are also being worked out by the DoT and a Cabinet approval has to be taken for pricing and other modalities," an official told ET on condition of anonymity.

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The Trai has already given recommendations for pricing and other details for NGSO firms, which are being considered by the DoT. Trai had recommended levying spectrum charges on NGSO satcom players at 4% of adjusted gross revenues (AGR), rejecting views from the DoT that asked for the charge to be fixed at 5% of AGR with a 1% discount for serving hard-to-connect areas.

Now only GSO-based fixed satellite networks such as Hughes and Nelco are permitted to offer services in India, and they pay spectrum charges in the range of 3-4% of AGR. Such GSO players offer services to enterprises only. But when NGSO players enter the market, they will offer services directly to the consumers. Even in the notified draft rules, the DoT has retained the 3-4% AGR for GSO players as spectrum fee. The draft rules retained 1% AGR charge for BSNL under the sui generis category for its global satellite phone service.

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"These rules prescribe the terms and conditions of spectrum assignment by administrative process, in respect of the entries listed in the First Schedule to the Act," said the notification issued on June 17. The draft rules will be taken into consideration after 30 days of notification, and during this time stakeholders can submit their views or objections.

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NGSO players have got a satcom permit and approval from space regulator IN-SPACe. These companies are waiting for allocation, which will happen once pricing is decided. The firms also need to get security clearance before launching commercial services. Amazon Kuiper is awaiting approvals. Spectrum for both GSO and non-GSO will be given administratively, as per provisions of Telecommunications Act.