State-run telecom company Bharat Sanchar Nigam Limited (BSNL) has received major relief from the government as it will now have to pay only 1% of its Adjusted Gross Revenue (AGR) for its satellite internet services.
This move aims to promote India’s efforts in expanding satellite-based broadband connectivity, especially in rural and remote regions where fiber networks are hard to reach.
Key Highlights
| Aspect | Details |
|---|---|
| Company | Bharat Sanchar Nigam Limited (BSNL) |
| License Type | Satellite Internet Service License |
| AGR Payment Rate | 1% of Adjusted Gross Revenue |
| Previous AGR Rates (Other Services) | 8% of AGR |
| Regulatory Body | Department of Telecommunications (DoT) |
| Objective | Promote satellite broadband and rural connectivity |
| Impact | Reduced operational cost, faster rollout of satellite internet |
| Beneficiaries | Remote villages, rural schools, government institutions |
Government’s Vision Behind the Move
The Department of Telecommunications (DoT) introduced the Global Mobile Personal Communication by Satellite (GMPCS) license framework to encourage innovation and private participation in satellite internet.
By offering a 1% AGR payment, the government wants to make satellite broadband affordable, allowing BSNL and private players to provide seamless connectivity even in mountainous, coastal, and tribal regions.
What This Means for BSNL
- Lower financial burden: BSNL will save significantly on license fees.
- Competitive advantage: The move gives BSNL an edge over private satellite ISPs.
- Boost to rural digital connectivity: It supports the government’s Digital India mission.
- Faster expansion: BSNL can scale satellite services across India without heavy regulatory costs.
Industry Impact
This decision also aligns with India’s larger goal of promoting satellite internet networks from companies like Starlink, OneWeb, and Jio Satellite. Experts say the 1% AGR rate could set a new benchmark for future entrants and accelerate satellite broadband adoption nationwide.
Conclusion
The government’s 1% AGR concession for BSNL’s satellite internet license is a transformative step toward making universal internet access a reality. It not only supports the Digital India initiative but also strengthens India’s position in the global satellite communication market.
