DoT amends Captive VSAT license agreement to reduce one-time entry fee and FBGs

The Department of Telecommunications (DoT) earlier this year amended the captive VSAT CUG license agreement to amend four sections of the agreement including one-time entry fee and financial bang guarantee (FBG) among others.

VSAT licensees can now provide data rate as their network capabilities subject to technical parameters being mentioned in the relevant Interface Requirement for VSAT network issued by TEC. Earlier, the obligation was to have a maximum Data Rate up to 2 Mbps per VSAT for Star configuration & 4 Mbps for Mesh configuration.

VSAT companies can now sign the license agreement by paying reduced one-time entry fee of Rs 15 lakhs, down from the earlier Rs 15 lakhs. Additionally, the annual license fee now shall be based on the total number of VSAT terminals irrespective of number of hubs in the network and without levy of any minimum license fee.

VSAT licensees currently pay Rs 10,000 per annum per VSAT installed as license fee apart from the entry fee. The total number of VSATs includes all types of VSATs including receive only/transmit only/receive & transmit both etc).

DoT has also reduced the financial bank guarantee valid for a period of one year from the exisiting Rs 30 lakhs to Rs 25 lakhs. The FBG normally had to be submitted prior to signing of the license agreement with subsequent amount of FBG equivalent to license fee for two quarters subject to periodic review on six monthly basis by the licensor. Earlier, the same had to equivalent to the license fee payable annually with periodic review by the licensor.