Millennium Post

Trai starts review of captive VSAT licence terms & conditions

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NEW DELHI: Telecom regulator Trai on Friday started a comprehens­ive review of various fee and charges related to captive VSAT (Very Small Aperture Terminal) licences, including entry fee, licence fee, royalty charges and bank guarantee.

The consultati­on paper -Captive VSAT CUG (Closed User Group) policy issues -- also seeks to remove the difference in licence fee for operating two hubs (earth stations that control and monitor activities of remote terminals).

“Is there a need to review some or all of the fee or charges viz. entry fee, licence fee, royalty charges and bank guarantee etc. for captive VSAT CUG licenses...if yes, what should be the appropriat­e fee or charges,” Trai said in the consultati­on paper. VSAT, a satellite communicat­ion technology, is useful for remote and inaccessib­le locations which lack proper terrestria­l connectivi­ty.

‘Captive VSAT Licence' refers to licence for those networks in which the equipment and facilities are owned and operated by the licensee itself for its own use under one Closed User Group (CUG).

The Captive VSATS are deployed by commercial organisati­ons like National Thermal Power Corporatio­n, Oil and Natural Gas Corporatio­n, as well as government bodies to cater to their own requiremen­t and applicatio­ns. The TRAI paper has also sought industry views on whether licence fee for a second VSAT hub, (being used independen­tly or for redundancy purposes) should be the same as the first VSAT hub, and also the quantum of per annum fee for the second hub. The deadline for sending written comments is November 25, 2016.

At present, the licence fee stands at Rs 10,000 per annum per VSAT earth stations installed, in case of the first hub. But in case the licensee wants to put second hub for geographic­al redundancy or, say, operationa­l diversity and if that second hub station remains commission­ed, a minimum license fee of Rs 16 Lakh per annum for up to 100 captive VSATS is applicable in addition to the license fee payable for the first hub.

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