Trai recommends 50 per cent cut in VSAT entry fee

KOLKATA: The telecom regulator has suggested halving the one-time entry fee for captive VSAT (very small aperture terminal) services to Rs 15 lakh. Trai on Tuesday also recommended abolishing the practice of levying a separate licence fee on companies keen to set up a second hub for captive VSAT services.

The telecom department had sought the regulator’s suggestions on framing the terms and conditions of captive VSAT Closed User Group (CUG) licences and its views on levying a separate licence fee for a second hub in a captive VSAT CUG network.

Trai, however, suggested the government continue charging a licence fee for the first hub of captive VSAT. Under current rules, the captive VSAT licence fee for the first hub is a flat Rs 10,000/terminal per year.

The licence fee for the second hub is Rs 16,000/terminal per year with a minimum of Rs 16 lakh, which covers up to 100 VSAT terminals.

At present, there are two categories of closed user group VSAT permits – one to offer services on a commercial basis and another for networks deployed by the government, public and private companies for internal communication.

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