Trai recommends 50% cut in VSAT entry fee

New Delhi: Telecom regulator Trai on Tuesday recommended 50 percent reduction in one-time entry fee paid for captive VSAT services to Rs 15 lakh from Rs 30 lakh at present.

The regulator also recommended removal of separate licence fee on companies interested in setting up second hub for captive VSAT services.

"The entry fee for captive VSAT licence may be reduced by 50 percent i.e. From Rs 30 lakh to Rs 15 lakh," the Telecom Regulatory Authority of India (Trai) said in its recommendation on policy issues on captive VSAT services.
The Department of Telecom had sought the recommendations of Trai on minimum license fee in respect of second hub in captive VSAT CUG network and terms and conditions of captive VSAT CUG licence.

There are two types of closed user group (CUG) VSAT licences - Commercial CUG VSAT licence and Captive CUG VSAT licence.
A commercial VSAT service provider can offer the service on commercial basis to its subscribers by setting up a number of CUGs.
Captive CUG VSAT networks are mostly deployed by government, public, private companies for their internal communication.

VSAT network comprises a central VSAT hub and a number of smaller nodes located at various remote locations that provide end services such as internet, voice, fax, data, and video.

While the licence fee for captive VSAT for the first hub is charged at a flat rate of Rs 10,000 per terminal per year irrespective of terminals, the licence fee for the second hub is charged at the rate of Rs 16,000 per terminal per annum with a minimum licence fee of Rs 16 lakh per annum, which covers up to 100 VSAT terminals connected to the second hub.

If the number of VSATs exceeds 100 for the second hub, a additional amount of Rs 16,000 per annum per VSAT terminal is chargeable.

The regulator has recommended that government can continue charging licence fee for the first hub of captive VSAT as per current rule but it should do away with separate licence fee for the second hub.

It has recommended that same model of charging Rs 10,000 per terminal per year should be applied for second captive VSAT hub too.