Starlink faces new 3% spectrum tax in India

Starlink, the satellite internet service from Elon Musk, may soon face a 3% tax on its revenue in India. This potential spectrum tax comes on top of an existing 8% license fee. If imposed, these charges could raise costs for customers using Starlink's services. The tax has not applied to traditional telecom providers in India, like Reliance Jio, Airtel, and Vodafone Idea. However, new regulations might require Starlink and other satellite companies to pay for their spectrum usage, which will be assigned instead of auctioned. The Telecom Regulatory Authority of India (Trai) is currently discussing the final rates for this tax and other related fees. They expect to release recommendations soon. These recommendations will go to the Department of Telecom (DoT) for further review before being approved by the Cabinet. Sources indicate that the spectrum tax may even exceed the proposed 3%, depending on ongoing discussions. Other satellite companies, such as Eutelsat One Web and the joint venture between Reliance Jio and SES, could also be affected by this new tax structure.