NEW DELHI: The standoff between the department of telecom (DoT) and regulator Trai regarding recommendations for satellite spectrum is intensifying, with the latter now raising objections to lower charges being sought for state-owned BSNL’s services.As differences between the two critical organisations come out openly over satellite spectrum charges and other areas such as subsidies, the preferential treatment accorded to BSNL has now been flagged off as “discriminatory” by Trai which has refused to agree with DoT’s views on the subject.In its recommendations given to DoT earlier this year, Trai had recommended that spectrum charges for GSO (Geostationary Orbit) and NGSO (Non-Geostationary Orbit)-based Mobile Satellite Services should be levied at 4% of Adjusted Gross Revenue (AGR). However, in its assessment of the recommendations, DoT asked Trai to have a re-look, saying that spectrum charges for BSNL may continue to be levied at 1% of AGR as it is “mainly providing services for strategic purposes.”Trai has now refused to accept this suggestion and has rather said that it will be discriminatory for other new entrants to the satellite sector who may also provide services similar to what BSNL is providing today. “… the Authority does not agree with the DoT’s view that for Global Satellite Phone Service or GSPS license of BSNL, spectrum charges may continue to be levied at 1% of AGR,” the regulator said, a view that is not being seen favourably by top officials at DoT.Trai said it will be “unfair and unreasonable” to seek 1% AGR charge for BSNL just on the premise that it is providing services for strategic purposes. “DoT’s proposal provides for lesser spectrum charges to a specific service provider i.e. BSNL, a PSU which would be discriminatory in the scenario of multiple service providers for MSS (Mobile Satellite Service).”It also raised objections to the grounds of “strategic purposes” being ascribed just to BSNL. It said that other telecom service providers may also provide services for strategic use, besides commercial use. “However, presently there is no scheme for differential charging of lesser spectrum charges across services and across service providers for providing services for strategic purposes. On this count also such a preferential treatment would be discriminatory.”Trai said that the 1% spectrum charge for BSNL’s satellite services had been recommended in December 2018 under ‘sui-generis’ category as there was only one single operator then. “Global Satellite Phone Service was majorly being used by the govt agencies and that was the only way to avail telecom connectivity in far-flung areas and water bodies. At that time, this service was not considered as a premium service but was akin to emergency services.”However, in May 2022, DoT had given orders to expand the scope of the ‘sui-generis’ license granted to BSNL for satellite-based services to provide satellite-based data connectivity to IoT devices/ aggregator devices.Trai says that the industry’s dynamics have changed since. “… significant developments have taken place in the Indian telecom landscape, evolving satellite service technologies and changing market dynamics.”It said that in its reference on satellite communication of July 2024, DoT had itself asked Trai to account for “level playing field” with terrestrial access services for GSO/ NGSO-based Mobile Satellite Services (MSS) providing voice, text, data, and internet services (besides NGSO based Fixed Satellite Services).
