| India's present regulatory environment essentially | | | | capacity is canalized through ISRO. Approval when |
| requires providers of Indian domestic services (i.e., | | | | granted is usually on a short term basis until |
| up linked from India, with intended coverage of | | | | INSAT is able to launch future additional capacity. |
| India) such as Direct to Home ("DTH") and VSAT | | | | Presently, several leases have been signed with |
| services to use Indian National Satellite System | | | | foreign satellite operators by ISRO to cover |
| ("INSAT") satellites. India is a relatively mature | | | | shortfalls in transponder capacity including leases |
| satellite market, with its own domestic satellite | | | | with Thailand's Thaicom for C-band capacity and |
| operator, Indian Space Research Organization | | | | with New Skies and SES Americom for Ku-band |
| ("ISRO"), providing geostationary satellite services | | | | capacity. The Telecom Regulatory Authority of |
| since 1982. ISRO established in 1969 | | | | India has been consistently recommending for an |
| manufactures and successfully launches satellites, | | | | 'Open Sky' policy for all satellite users. However, |
| as INSAT. Till the early 1990s, the Indian satellite | | | | this recommendation has so far not been |
| market was dominated by INSAT and by Intelsat, | | | | accepted by GoI and it is unlikely that the same |
| which was then an international treaty | | | | would be considered by GoI in the near future. |
| organization, one of whose signatory was the | | | | However, this closed regulatory regime severely |
| then Government of India ("GoI") owned | | | | limits the ability of foreign satellite operators to |
| telephony carrier, Videsh Sanchar Nigam Limited. | | | | offer Ku-band services to customers up linking |
| The key component of DTH and VSAT services | | | | from within India. |
| is satellite capacity and Ku-band is the frequency | | | | In view of the foregoing and from a regulatory |
| of choice for all DTH and VSAT operators. Under | | | | viewpoint, presently the only operator capable of |
| India's present regulatory regime, any company | | | | supplying Ku-band capacity in India for DTH or |
| wishing to provide subscription based television | | | | VSAT use is ISRO/INSAT. Clearly, INSAT does |
| services to customers in India must uplink from | | | | not have sufficient capacity to satisfy the current |
| Indian territory, and further must use either an | | | | and future demand of the Indian market. Though, |
| Indian satellite, or a satellite system approved by | | | | ISRO has received approval to begin building |
| the Indian Department of Space ("DoS"). Several | | | | additional satellites to provide expansion capacity, |
| VSAT operators are also very keen to start | | | | but these will not be available for another 2-3 |
| using Ku-band to lower equipment costs through | | | | years. According to a Report prepared by Loft |
| the use of smaller dishes. Some independent | | | | Communications for GVF and CASBAA, INSAT |
| industry analysts forecast that the demand from | | | | C-band capacity is virtually fully leased, with |
| these two market segments for Ku-band will | | | | foreign operators providing necessary additional |
| outstrip the demand for C-band within the next 2 | | | | bandwidth. The Report states that the total |
| - 3 years. VSAT operators are also required to | | | | supply of Ku-band capacity is limited to 36 |
| use INSAT satellite for national connectivity or a | | | | transponders, assuming successful launch of |
| satellite system approved by DoS, though the | | | | proposed INSAT series satellites and its Ku-band |
| preference is always given to INSAT satellites. | | | | offering is fully committed on launch with no |
| Internet Service Providers are however | | | | additional growth opportunity for customers and |
| authorized to set up international gateways | | | | no significant capacity available for VSAT |
| directly using C and Ku-band (and variant thereof) | | | | customers. With several DTH players in the Indian |
| transponders in foreign satellites for global | | | | market including the state broadcaster |
| connectivity, i.e., without any intervention by ISRO. | | | | Doordarshan, Space TV (Tata Sky), Sun TV, |
| Similarly, an International Long Distance service | | | | Reliance, Bharti, Essar, Videocon; increased VSAT |
| provider is permitted to offer all types of bearer | | | | traffic; increased channels offerings by existing |
| services from an integrated platform using foreign | | | | DTH operators, the gap between the available |
| satellites for provision of international voice, data, | | | | bandwidth capacity and required capacity is |
| fax, video and multi-media tele-services. | | | | increasing rapidly. Consequently, unless additional |
| The approval process for using a non Indian | | | | Indian satellite systems are established in India or |
| satellite or a foreign satellite by a DTH service | | | | an Open Sky policy is introduced in India, potential |
| provider involves DoS, the Wireless Planning | | | | DTH companies will have no choice but to either |
| & Coordination Wing of the Department of | | | | curtail their operations or postpone them until such |
| Telecommunications and the Ministry of | | | | time as sufficient capacity is available. |
| Information & Broadcasting. Preference is | | | | This article is introductory to the series of articles |
| always given to INSAT satellites, operated by | | | | on provision of foreign satellite services in India. |
| ISRO. In instances where INSAT does not have | | | | My next article on the subject will discuss possible |
| sufficient in-orbit capacity available for any | | | | entry strategies for foreign companies and |
| particular service, the lease of foreign satellite | | | | satellite operators in India. |