India’s satcom industry generates interest from global players

At least half a dozen players, in addition to Elon Musk-backed Starlink and Jeff Bezos’ Project Kuiper, are looking to enter the Indian satellite communication (satcom) market.

This includes Munich-based Rivada Networks, California-headquartered Viasat, Barcelona’s Sateliot, Ottawa-based Telesat, and Globalsat from Delaware.

These companies have written to the Telecom Regulatory Authority of India expressing their willingness to launch satcom services in India.

“As Globalstar grows its satellite communication business, it has embarked on a comprehensive global strategy to develop its direct presence and regulatory compliance in numerous countries around the world. India represents the single largest market that Globalstar has been previously unable to enter. It is Globalstar’s hope that this consultation results in the TRAI instituting regulatory reforms in satellite spectrum that ease its proposed entry in India,” Globalstar wrote in its submission to the Trai.

The company operates a global network of 28 gateway Earth Stations located in eighteen countries; and has over 760,000 users in over 120 countries.

Recently, Apple Inc. announced a direct-to-handset “Emergency SOS via satellite” feature using Globalstar’s MSS network.

Sateliot, which offers wholesale provision of satellite capacity to mobile operators and IoT operators, said it is committed to playing an active role in shaping the ecosystem by providing satellite IoT connectivity that complements India’s digital and connectivity goals.

Most of these players have asked for a low spectrum charge in order to make the services affordable. “

It is proposed that spectrum charges be based on a percentage of Adjusted Gross Revenue (AGR), with a cap not exceeding 1 per cent of AGR or even less. This approach promotes broader access to satellite services without imposing excessive financial burdens on operators, fostering the growth of satellite connectivity in regions that need it the most,” said Rivada Space Network.

The Centre’s decision to allocate spectrum for satellite communications administratively rather than through auction has enthused these global players to consider India.

Unlike mobile services, satellite communication (satcom) networks do not need dedicated spectrum resources. All satellite players in other countries operate by sharing spectrum resources.

“In a country with a wide range of geographies such as India, this technology is relevant, given that around 25 per cent of the Indian population resides in areas where it is extremely hard for terrestrial operators to set up a telecom network. Secondly, the entry of satcom players will reinvigorate the competitive landscape of the telecom sector, which has hitherto become a duopoly,” said a market expert.

Satcom services have so far been deployed to offer fixed broadband service and as backhaul infrastructure for telecom operators. However, tech advancements have allowed satcom players to offer seamless broadband connectivity directly to the users’ smartphones, bypassing traditional cell towers altogether.

While this allows consumers more options, telecom operators have expressed concerns that satellite operators could disrupt their business model. The Hindu BusinessLine