Trai rejects DoT's 5% satcom spectrum hike, keeps Rs 500 urban fee

• Trai rejected DoT's proposal to increase the annual satcom spectrum charge to 5% from 4%.
• Trai maintained its recommendation for a Rs 500 annual fee per connection for urban satellite communication users.
• DoT had suggested a 5% charge with a potential 1% discount for serving tough terrains, and waiving the Rs 500 fee if targets were met.
• Trai argued that the Rs 500 urban fee incentivizes operators to expand services to rural and remote areas, helping bridge the digital divide.
• The decision impacts companies like Starlink, Eutelsat OneWeb, and Jio SES, which are planning to launch satcom services in India.

Why It Matters: Trai's decision impacts satellite internet pricing and rural connectivity incentives.