Background
In a decisive move on January 17th, 2023, the Department of Telecommunications (DoT) issued a notification, effectively reaffirming the continuation of the prevailing annual spectrum usage charges for six months. This comprehensive notification outlined several key stipulations, which can be broadly categorized as follows:
- Continuation of Established Charges: The notification emphasized the adherence to the formula-based Spectrum Usage Charge (SUC) calculation, initially established on March 22nd, 2012. This directive serves as the cornerstone for calculating royalty charges, particularly concerning the allocation of frequencies to Captive Users. This category encompasses all government entities and includes Single Channel Operators for Fixed/Land/Land Mobile Stations/Terrestrial Broadcasting. The links to respective orders are – PP-I, PP-II, PP-III & PP-IV.
- Revenue Share-Based Charges for VSAT and Inmarsat Services: The DoT stipulated the imposition of percentage revenue share-based spectrum charges tailored for two distinct services:
- Commercial/Captive Very Small Aperture Terminal (VSAT) Networks, as defined on April 16th, 2003.
- Inmarsat-based Global Satellite Phone Services, instituted on June 28th, 2021.
- Mandatory Undertaking for Revised Charges: A pivotal provision accompanied the issuance of this order: all respective wireless users are mandated to submit a formal undertaking. This commitment ensures the payment of the revised spectrum charges—determined through a market-related mechanism or an equivalent alternative—from the date denoted in the Letter of Intent (LoI) for the provisional allotment of spectrum.
Following this, on December 11th, 2023, the DoT introduced an additional order, which primarily influences the spectrum charges designated for Captive Users. This development is significant for two reasons:
