Entry Strategies For Provision of Satellite Services by Foreign Companies in India

Possible Entry Strategies For Provision of Satellitecase of DTH, the Ministry of Information &
Services by Foreign Companies/SatelliteBroadcasting), the process is definitely time
Operators In Indiaconsuming and with no clear assurance of
In the present state controlled satellite regulatoryachieving approval. The foreign satellite should be
environment in India, Foreign Satellite Operatorscoordinated with INSAT satellites in terms of the
(“Satellite Company”) canInternational Telecommunication Union’s
consider two entry options to establish its(“ITU”) Radio Regulations as a
business presence in India and provide satellitepre-condition for lease of capacity. A short term
services in the Indian subcontinent.lease (usually on a yearly basis) is signed by ISRO
A. Providing Services Through ISRO. The Satelliteor by its commercial arm, i.e., Antrix with the
Company can provide bandwidth capacityIndian customer, and between Antrix and the
services to Indian end users (such as DTH andSatellite Company. There is no privity of contract
VSAT service providers) through Indian Spacebetween the end customer and the Satellite
Research Organization (“ISRO”).Company though typically the Indian customer
For this purpose, the transponder capacity isand the Satellite Company agree on the
canalized through ISRO and ISRO’scommercial terms prior to approaching ISRO. The
approval may be forthcoming if alternate capacitylease rentals are generally marked up by ISRO
is not available on INSAT satellites. As the leasingfor provision of capacity to the end customer.
process involves the Department of SpaceINSAT reserves the option of not extending the
(“DoS”), the Wireless Planning &capacity lease for subsequent years and require
Coordination Wing of the Department ofthe end customer to migrate to a INSAT satellite,
Telecommunications (“WPC”)as and when alternate capacity is available.
and the concerned Ministry (for instance in the