Telecom: DoT abolishes NOCC charges

May 10, 2022

Recently, the Department of Telecommunications (DoT) has abolished the network operation and control center (NOCC) charges.

What is the Network operation and control center (NOCC) charge?

It is a charge levied on the use of space segments by telecom service providers for satellite telephony, broadband, etc.

When was NOCC introduced?

The NOCC levy regime was introduced in 2003.

How much is the NOCC charge?

The Department of Telecommunications (DoT) levied Rs 21 lakh per transponder every year for 36 MHz of spectrum on a pro-rata basis. The government also charged Rs 6,000 for every trial of antenna that is used for receiving and transmitting signals.

For which services NOCC charge is abolished?

The Department of Telecommunications (DoT) said that there shall be no NOCC charges for use of space segment for all DoT licensees for commercial and captive VSAT services, GMPCS (satellite phone service), NLD (national long distance), and other telecom licensees having a unified license or standalone license.

Why the NOCC charge is abolished?

To provide a fillip to upcoming satellite broadband companies.
To ensure more competition and growth in the Indian satellite broadband market.

Which companies are planning to launch satellite broadband services in India?

Currently, Sunil Bharti Mittal’s OneWeb and Elon Musk’s Starlink are the providers planning to launch satellite broadband services in India using low-earth orbit satellites.
Reliance Jio announced a joint-venture with SES, Luxembourgish satellite-based content connectivity solutions provider to deliver satellite broadband services.

How abolishing NOCC will benefit internet consumers in India?

Since Satellite communication operates don’t have to pay the NOCC charges anymore for hiring transponder capacity, Indians can look forward to lower broadband-from-space prices.

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