Bridging The Digital Divide: TRAI Pitches Satellite Broadband For Rural India

TRAI has recommended a detailed framework for allocating spectrum for satellite-based communication services in India, with an emphasis on rural connectivity. The plan includes affordable spectrum pricing, subsidies for user terminals, and a rejection of terrestrial operators' calls for a level playing field. The move is expected to trigger the rapid rollout of satellite broadband across remote areas, supporting India's ambition to boost its space economy and digital inclusion

Satellite-based broadband communications will help bridge the digital divide, particularly in rural, remote, unserved, and underserved areas where terrestrial services are limited or not available. By overcoming geographical barriers, satellite technology provides connectivity, ensuring access to essential services such as education, health care, e-governance, and financial inclusion. During national disasters, satellite communications become a reliable mode of communication. In border and strategic areas, where establishing terrestrial networks is a challenge due to terrain or security constraints, satellite communications provide connectivity. It facilitates communication for aircraft, ships, and vehicles operating on remote or international routes. Satellite services play a vital role in supporting the growth of IOT (Internet of Things) and M2M (Machine to Machine) applications in rural and remote areas, where terrestrial networks are unavailable.

As per Telecom Act 2023, for satellite-based communication services, the government can allot spectrum on an assignment basis, without following the auction route. DOT on 11.07.24 requested TRAI to provide recommendations on terms and conditions for spectrum assignment, including pricing, for satellite-based services, taking into account the level playing field with terrestrial services.

These recommendations are for 1) NGSO (Non-Geostationary Orbit) based Fixed Satellite Services (FSS) for providing data communication and internet services 2) GSO/ NGSO based Mobile Satellite Services (MSS) for providing voice, text, data, and internet services to moving platforms and vehicles for Emergency Communications, aviation and disaster response.

TRAI issued a consultation paper seeking comments from the stakeholders and conducted an Open House Discussion on the consultation paper. After analysing these comments, TRAI made recommendations to DOT.

TRAI recommended using KU (10-15 GHz), Ka (17-31 GHz), and Q/V (37.5 to 52.4 GHz) bands for user links (between user and satellite) and feeder links (between Satellite Earth Station Gateways (SESG) and satellite) for NGSO based FSS.

For MSS, it recommended L (1-2 GHz) and S (2-4 GHz) bands for user links and C (4-8 GHz), KU, Ka, and Q/V bands for feeder links.

Frequency spectrum assignment and terms and Conditions will be valid for five years and the government may extend the validity by two years.

The spectrum assignment will be done with first come first served criteria on a shared basis and the satellite operators have to coordinate among themselves to avoid interference. In cases of failure in coordination, the government can split the spectrum for NGSO FSS systems. For the establishment and operation of SESGs, the NGSO satellite operators should coordinate to avoid interference. If the need arises, the government can prescribe a coordination distance between two SESGs operating in the same frequencies. The relevant provisions of ITU should be made applicable for the sharing of frequency bands for terrestrial and space services and for their coexistence.

The SESGs should be commissioned within one year from the date of permission. The satellite operators should be permitted to surrender spectrum, for which terms and conditions are recommended by TRAI. Satellite spectrum will be assigned to the applicant within 30 days of the date of application if clearance is given by the government for the satellite network proposed by the applicant.

Satellite spectrum pricing

GSO-based FSS: 4% of Adjusted Gross Revenue (AGR), with a minimum annual charge of Rs3,500 per MHz.

NGSO-based FSS: 4% of AGR + Rs500 per annum per urban subscriber, with a minimum annual charge of Rs3,500 per MHz.

GSO/NGSO-based MSS: 4% of AGR, with a minimum annual charge of Rs3,500 per MHz.

Additionally, satellite operators have to pay 8% of AGR as license fee.

Making satellite-based broadband services affordable in rural areas has been kept in mind by TRAI while recommending satellite spectrum pricing.

TRAI has recommended providing subsidies for NGSO based FSS user terminals in rural and remote areas and this subsidy can be met by Digital BharathNidhi (DBN). This will make Satellite Broadband services affordable to prospective customers in these areas. The price of the user terminal of Starlink is between Rs. 20,000 and Rs 35,000, including satellite dish and Wi-Fi router.

Rejection of terrestrial service operators' demand for level playing field

It is important to note that TRAI has categorically rejected terrestrial service operators' demand for a level playing field between them and satellite operators. It said that the demand was factually not correct as the two technologies are totally different and satellite service can only be complementary and not competing with terrestrial service in the near to medium term. In the foreseeable future, the case of a level playing field between terrestrial services and NGSO-based FSS and GSO/NGSO-based MSS is not expected to arise. TRAI has come to this conclusion based on the following analysis:

As per TRAI, the ratio of capacities of Terrestrial and satellite services ranges from 56:1 to 280:1.

To meet the surge in demand for broadband services, a terrestrial service operator is well positioned to enhance the network capacity at a much higher pace as compared to an NGSO-based FSS operator.

The typical cost of a satellite user terminal of NGSO-based FSS is higher than the cost of a terrestrial FWA terminal.

There is a significant difference between the range of services under terrestrial operators and under NGSO-based FSS.

Mobile Satellite Services cater to a niche segment of the market and are not comparable with terrestrial networks.

TRAI has discouraged satellite operators from providing services in urban areas by levying a charge of Rs500 per subscriber per year. With this measure, it is expected that the satellite operators will not compete with terrestrial service operators in urban areas and focus on rural and remote areas, which are deprived of broadband service as laying of fiber or provision of mobile service is not possible there.

Terrestrial service operators feel that the recommendation of TRAI to subsidise user terminals through DBN will tilt the playing field against them as most of the DBN levy is contributed by them.

What next?

The Digital Communication Commission (DCC) will consider these recommendations and obtain cabinet approval for the pricing of satellite spectrum. Then it will finalise satellite spectrum allocation rules. Afterward, satellite spectrum will be formally allocated to satellite operators, opening the door for commercial satellite broadband services. Updated security conditions have already been notified.

Present status of readiness of satellite operators

OneWeb and Jio-SES have all the clearances (from DOT and Indian National Space Promotion & Authorization Centre (IN-SPACe)) and compiled with security conditions. Starlink has obtained DOT clearance and has to get clearance from IN-SPACe. It has also complied with the security conditions. Many firms have applied for permits to offer satellite-based communication services.

Nomadic facility in FSS

The user terminals, which are portable, have to report their locations for every 2.6 Km moved or one minute duration whichever is less. The user terminal has GPS and by setting relevant parameters, certain areas can be denied service, in a security angle.

Way forward

The Indian space economy is reckoned to have a potential to touch $20 billion in the next 3 years and $44 billion by 2033, boosting its global share to 8% from 2% currently. India is set to witness the world's fastest rollout of satellite-based communication services.

Hope these recommendations will be accepted by the government and that satellite-based broadband services will be available soon in rural and remote areas.

Reference: TRAI recommendations on Terms and conditions for the Assignment of Spectrum for certain Satellite Based Commercial Communication Services

(Writer is former Advisor, DoT)