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Rediff.com  » Business » VSAT licence fee may be cut

VSAT licence fee may be cut

By Thomas K Thomas in New Delhi
May 29, 2003 12:44 IST
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The government has proposed to reduce the annual licence fee for captive Very Small Aperture Terminal providers from Rs 16,000 to Rs 8,000 per terminal. The permissible transmission speed is also being increased from 512 kbps to 2 Mbps.

The move is expected to help the software industry transfer bulk data quickly. Applications that require high data transfer speeds like high-speed back haul links for large customers and in-house training using the audio-visual medium will also benefit.

The Telecom Regulatory Authority of India had recommended these measures in December last year.

The department of telecommunications is also mulling a reduction in the permitted size of antennae from 1.8 meter to 1.2 meter for VSATs using the extended C Band and from 1.2 meter to 1 meter for those using the Ku Band.

In response to the concerns raised by the ministry of home affairs and ministry of information and broadcasting, the department of telecommunications is planning to amend the existing VSAT licence norms and bar VSAT operators from transferring data, audio or video programmes for the general public.

The move to reduce the licence fee for captive VSAT providers will create a level playing field for captive and commercial VSAT operators.

Senior department of telecommunications officials said the licence fee for captive VSAT operators had not been revised since the first licences were issued.

As the network was being used for internal communication requirements there was a need to bring down the fee, they said.

They also said while captive VSAT operators had been asked to pay a minimum licence fee of Rs 16 lakh, commercial VSAT operators did not have to pay any such fee. 

The department of telecommunications is now proposing to bring down the minimum fee to Rs 800,000.

Proposed changes

  • The DoT is mulling a reduction in the permitted size of antennae from 1.8 meter to 1.2 meter for VSATs using the extended C Band and from 1.2 meter to 1 meter for those using the Ku Band.
  • The DoT is also planning to amend the existing VSAT licence norms and bar VSAT operators from transferring data, audio or video programmes for the general public.
  • The move will create a level playing field for captive and commercial VSAT operators.
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Thomas K Thomas in New Delhi
 

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