Trai Stands Firm: Rejects Higher Spectrum Fee Proposal

The Telecom Regulatory Authority of India (Trai) has rejected a proposal from the Department of Telecom (DoT) to increase the annual spectrum fee for satellite communications from 4% to 5%. Trai argues that such a move would favor urban areas over rural, potentially widening the digital divide.

The Telecom Regulatory Authority of India (Trai) has firmly rejected a proposal from the Department of Telecom (DoT) to raise the annual spectrum charge for satellite communications from 4% to 5%.

The DoT's suggestion included a provision for a discount if satellite companies served a certain percentage of customers in difficult-to-reach areas. However, Trai believes adopting this approach could leave rural and remote areas without improved access to satellite connectivity.

To counter this, Trai advocates for a fixed subscriber fee in urban centers while exempting rural areas, encouraging service expansion into underserved regions and addressing the broader goal of bridging the digital divide.

(With inputs from agencies.)