As mentioned in our
Regulatory New Summary last month, titled "Conflict Of Interest of
regulator and government", the issue of whether the interministerial
group of secretaries for telecom policy, Digital Communications Commission
(DCC), can "ask" the sector regulator the Telecom Regulatory
Authority of India (Trai) to seek "clarifications" from the
Department of Telecom (DoT) before releasing its recommendations on various
subjects, is still festering. On spectrum allocation methodology and charges
for satellite communication (satcom) companies, Trai has rejected most of the
changes advised by DoT. Of these, the notable one is the levy of spectrum
charges for BSNL, which DoT wishes should continue to be levied at 1% of
Adjusted Gross Revenue (AGR) instead of 4%, as applicable for other telecom
service providers. The Union Cabinet will soon take the final call on the
pricing and spectrum allocation.
Our
view:
When there is a government ministry and a regulator for a sector, there has to
be clear demarcation of powers between the two. These decisions like on AGR are
important for the viability of the telecom sector and it is important to decide
who has the last word. The easing of the dispute will be watched domestically
and by international investors like those planning to invest in India's
satellite business. One of those is Starlink. So the stakes are high.
https://economictimes.indiatimes.com/epaper/delhicapital/2025/dec/09/et-corp/telecom-regulator-rejects-dot-views-stays-firm-on-satcom-spectrum-fee/articleshow/125848430.cms?utm_source=newsletter&utm_medium=email&utm_campaign=ETepaper_paid&utm_content=companies-pursuit-of-profit&ncode=aa7b195ba3c6333dfb5f128ad315479bf9f71a4d48dfbf993ddabd7dbf039a49f26176dd95548c9daab38c6011227bd6d0822f220d75d0c0a9561d7da94bb48c41ddc7f44b26a3aa69c4e3a21fb6c8ce615933b5c8e8e7b2&nl_id=626bc2ad7ae3583e7033658f
