DoT may stick to its 5% charge for satcom spectrum

India’s Department of Telecommunications plans to keep a 5% levy on adjusted gross revenue (AGR) as the usage fee for satellite communication spectrum, despite the Telecom Regulatory Authority of India recommending a 4% charge. Officials told the Economic Times that the DoT reviewed Trai’s clarifications but considers 5% AGR, with a 1% discount for operators serving hard-to-reach areas, simpler to apply and better suited to its needs.

Trai’s role is advisory, and its recommendations are not binding on the government. The DoT’s stance signals that satellite service providers may face a higher recurring charge than what the regulator proposed, unless the government revisits the issue later.