The government should create a separate authorisation category for satellite-based services, the Broadband India Forum (BIF) said in a representation to the Ministry of Communications, which MediaNama has reviewed. This comes in the context of the draft rules that the Department of Telecommunications (DoT) released for main service authorisation under the Telecom Act, 2023. The rules mention four main authorisation categories—Unified, Access, Internet, and Long Distance.
“By treating satellite as ‘merely a technology or type of media’ and not as a ‘satellite system’ under the said Draft Rules, rather than a service, the Draft Rules risk undermining regulatory clarity and impeding potential future investment in this service sector,” BIF says. For context, BIF is a think tank whose patron members include organisations, satellite service providers like Nelco, OneWeb, and Hughes, as well as telecom companies like Airtel and Reliance Jio.
Why did the DoT decide against a separate authorisation category?
The rules do not include any specific authorisation for satellite services because the DoT believes that satcom is not a distinct service. It explained this rationale in the back reference it sent to the Telecom Regulatory Authority of India (TRAI) earlier this year, rejecting TRAI’s recommendation for a separate authorisation category. A separate authorisation for satellite-based telecom services would be based on a type of technology/media, while other authorisations (like access service or internet service) are based on distinct service categories.
As such, the DoT argued that instead of creating a separate authorisation for satcom services, it makes sense to allow all authorised players to provide satcom services.
Meanwhile, TRAI explained that currently, the scale of terrestrial and satcom services in India is vastly different. As such, it had recommended a separate authorisation for satcom services, considering the specialised nature of satcom (intended for underserved areas) and its relatively underdeveloped status. BIF appears to be leaning towards TRAI’s recommendation, urging the government to reconsider the draft rules and align them with TRAI’s suggestions.
Why BIF argues for separate satcom authorisation:
Economic challenges of complying with the four draft authorisations:
The satellite sector serves 300,000 users and generates Rs 600 crore in revenue annually, the BIF points out. Meanwhile, terrestrial service providers serve 1,190 million subscribers and generate Rs 3,25,000 crore annually.
It explains that it would be disproportionate to enforce the same conditions on these two kinds of service providers, pointing out that the draft rules demand an entry fee of Rs 12 crore for unified service authorisation, which is 24 times higher than the Rs 50 lakh entry fee TRAI had suggested for satcom services. Similar to the entry fee, other financial requirements for a unified license are…
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