The Trai had made the recommendations on October 18, 2000. Neither has the DoT accepted the recommendations nor has it referred them back to the Trai indicating its disaggreement.

The bone of contention, apparently, is the license fee regime that VSAT service providers follow. While the DoT is believed to prefer that the VSAT service providers also shift to the revenue-sharing regime, the industry is more comfortable with a license-fee regime.

The DoT contention is that in the emerging converged scenario, the VSAT industry would be the only industry not following the uniform revenue-sharing regime. This would create problems in a smooth transition to the proposed convergence regime when a single omni-license comes into being for telecom services.

VSAT service providers, however find the license fee option is an easier regime to follow. Wg Cdr BG Bhalla, secretary general, VSAT Service Providers Association said: "Unlike other telecom services, VSATs are easily located, proprietary equipment. Hence, paying a license fee per VSAT per year is a simpler way of sharing the revenue, even though it does not follow the modalities of the revenue-sharing regime."

As a result of this hiatus, the recommendations are doing the rounds in Sanchar Bhawan and the file seems to have found its way to the minister also.The VSAT industry, however, feels that the issue can be sorted out at a later date when other licenses are migrated to the uniform converged license. Meanwhile, at least the Trai recommendations should be acted upon to provide necessary relief to the industry, claims the association.

Divergence dilemma: VSAT licencees await action on TRAI recommendationsSays Wg Cdr Bhalla: "TRAI recommended lower license fees and permitted higher speed bearer services and limited interconnectivity. Due to the recommendations being in limbo, the industry is still functioning under the earlier restrictive conditions. We are losing nearly Rs 3 crore per month."He added that while the industry realises the merit in the DoT's apprehension, however, at least as of now the TRAI recommendations should be acted upon.

Private operators were allowed in the VSAT industry in 1994-95. Carps Wg Cdr Bhalla: "But for highly regulated and restrictive market environment, our industry could have grown at least four times by now."Out of the 13 VSAT licenses issued by DoT till 1995, four were terminated, one is in the court, and three others were not been able to reach the minimum number of 200 VSATs, as was envisaged by the DoT.

Limited transponder capacity, high license fees, competition from leased lines and ISPs, and limited transmission rates were some of the major problems that the industry has been complaining about over the past five years. TRAI's recommendations of October 2000 addressed some of these issues.