Starlink is likely to be subjected to a spectrum usage charge (SUC) in India, a levy that had been scrapped for terrestrial network providers such as Reliance Jio, Airtel, and Vodafone Idea a few years ago, ToI reported citing sources. If imposed, the tax will increase costs for the Elon Musk-led satellite communications company in India.The potential charge adds to the challenges Starlink is already facing as it negotiates strict compliance mandates related to internet suspension and interception.Sources told ToI, Starlink, which is set to receive telecom airwaves through administrative allocation under the new telecom law passed in December 2023, may have to pay around 3% SUC on its adjusted gross revenue from the country."Since spectrum will be 'administratively assigned' to satellite operators instead of auction, SUC will be applicable, for which final rates are being worked upon," one of the sources said.This means satcom players will have to pay SUC in addition to the 8% licence fee already applicable to all telecom companies. "It may even be higher than 3%, though this is still being discussed."The Telecom Regulatory Authority of India (Trai) is finalising the pricing, tenure, and taxation of satellite spectrum. "Discussions within Trai are believed to have come to the conclusion that there is a requirement to mandate SUC for satcom players, since they will be allotted spectrum administratively at a pre-determined price," the source added.Trai is expected to submit its recommendations on satcom spectrum allocation soon. These will be reviewed by the Department of Telecommunications (DoT), which may seek further clarifications before referring the matter to the inter-ministerial Digital Communications Commission (DCC). Following DCC’s approval, the issue will be placed before the Cabinet.In June 2022, the government decided to remove SUC for bandwidth auctioned after September 15, 2021, across various frequencies.Sources said SUC would also apply to other satellite operators, including Eutelsat OneWeb, in which Airtel promoter Sunil Mittal holds a stake, and Reliance Jio-SES, the satellite communications joint venture between Jio Platforms and Luxembourg-based SES.