Starlink, the satellite internet service by Elon Musk, is preparing to launch in India. However, the company may have to pay a spectrum tax, which could make its services more expensive for customers.
What is the Spectrum Tax?
According to reports, Starlink may have to pay 3% of its Adjusted Gross Revenue (AGR) as Spectrum Usage Charges (SUC).
- Unlike Jio, Airtel, and Vodafone Idea, which no longer pay this tax, Starlink may not get the same exemption.
- Since Starlink will receive telecom airwaves from the government without an auction, it might be required to pay this 3% SUC.
- This charge will be in addition to the 8% license fee.
If this happens, Starlink’s internet plans will become more expensive. Some experts believe Starlink’s plans could be 10-15 times costlier than Jio and Airtel’s broadband services.
TRAI is Reviewing the Case
The Telecom Regulatory Authority of India (TRAI) is currently discussing:
- The cost of Starlink’s spectrum
- The duration of the license
- Any other applicable taxes
Once TRAI finalizes its recommendations, the decision will move to the Department of Telecommunications (DoT), then the Digital Communications Commission, and finally, the Cabinet.
What is Starlink’s Plan for India?
Starlink plans to offer satellite-based internet in India, making it the first company to do so.
- It has partnered with Jio and Airtel, which will sell Starlink’s devices through their online and offline stores.
- Both companies are also exploring ways to integrate their services with Starlink’s network.
With these developments, Starlink could provide high-speed internet in remote areas but at a higher cost compared to traditional broadband services.
