India's telecom regulator has recommended allotting satellite spectrum for commercial communication services for five years, it said on Friday, at a time when Elon Musk is getting closer to launching his Starlink high-speed internet in the country.
The recommendation also includes a possibility to extend an initial five-year spectrum allocation by a further two years depending on market conditions, the Telecom Regulatory Authority of India (TRAI)said.
The telecom watchdog also recommended charging telecom operators 4% of their adjusted gross revenue for geostationary orbit-based fixed satellite services and for mobile satellite services.
This is subject to a minimum annual spectrum charge of 3,500 rupees ($41) per megahertz (MHz), according to TRAI.
For non-geostationary orbit-based fixed satellite services, an additional 500 rupees per subscriber per annum in urban areas should be charged, exempting rural and remote areas, it said.
The recommendations come as Elon Musk is working towards launching Starlink in India. Musk has urged New Delhi to allot spectrum for 20 years to focus on "affordable pricing and longer-term business plans," according to Starlink's public submissions.
TRAI had agreed to demands for a lower licence time-frame to see how the sector grows, Reuters had reported in March, citing a government source.
Musk and Indian billionaire Mukesh Ambani signed a partnership in March that would allow Starlink devices to be sold in Ambani's Reliance (RELI.NS) stores, giving it access to a large distributor.
Ambani and Musk had previously been rivals - Ambani's telco subsidiary had unsuccessfully lobbied New Delhi for months to auction spectrum rather than allot it administratively, as Musk wanted.
Bharti Airtel (BRTI.NS) , India's No. 2 telco, has also pushed for a three-to-five year period for the licence. Bharti Airtel and Musk have also signed a distribution deal for Starlink.
($1 = 85.3610 Indian rupees)
