Trai vs DoT on Satcom Spectrum Fee - conflict continues

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. 

___________________
Link: 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