When will satellite communication services be available in India?
What's the story
Union Telecom Minister Jyotiraditya Scindia has said that satellite communication (satcom) services will be launched in India after players in the sector comply with security clearances. The companies include Elon Musk-owned Starlink, Eutelsat One, and Jio SGS. Scindia said the government is close to allocating spectrum to these players once the Department of Telecom (DoT) finalizes spectrum pricing.
Compliance requirements
Compliance with security clearances
Scindia emphasized that compliance with security clearances related to international gateways and data localization is a key requirement for satcom companies. He also revealed that provisional spectrum has already been allocated to these firms so they can demonstrate their ability to comply with security agencies. "They are in the process of doing that, so they need to comply," Scindia said.
Pricing dispute
Spectrum pricing for satcom services: A contentious issue
The issue of spectrum pricing for satcom services has been a bone of contention between DoT and the Telecom Regulatory Authority of India (TRAI). Earlier this month, TRAI rejected several DoT proposals, including a 5% annual spectrum fee on satellite communication players instead of 4%, and scrapping a ₹500 per connection charge in urban areas. The final decision will be made by the Digital Communication Commission (DCC), which may seek Cabinet approval.
Financial concerns
Vodafone Idea's financial relief and future liabilities
Scindia addressed Vodafone Idea's (VIL) plea for relief, saying that the DoT is still working on it. VIL had earlier written to the DoT, claiming its government liabilities amount to around ₹2 lakh crore, including ₹1.19 lakh crore toward spectrum dues. Without support from the Centre, VIL warned of a significant direct monetary loss with no recovery of spectrum dues and AGR dues.