The Department of telecommunications (DoT) will set up a committee to examine transponder availability and other problems of V-SAT service providers.
The panel will submit a preliminary report by October, and may recommend policy changes.
V-SAT Service Providers' Association (VESPA) have expressed opposition to paying the licence fee and the transponder charges for the period when satellite space was not available.
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There was no transponder available for the last six months.
The government had allotted the extended C-band in the Intelsat series of satellites for V-SAT services. However, that was soon full and no further satellite launches are expected before March 1999.
The V-SAT service providers cannot cater to additional subscribers nor increase in traffic.
VESPA demanded that either the service providers be allowed to work on the KU-band or be allowed to hire transponders on foreign satellites.
Both would provide long-term solutions, and currently not allowed by the government.
V-SAT providers have to pay transponder charges of Rs 92 lakh per annum for 9 MHz capacity apart from their licence fee.
Each 9 MHz transponder gives the players 3000 KBPS usable bandwidth, and additional capacities are allotted in quanta of 9 Mhz.
The license fee for the VSAT providers in the first year is Rs 1 crore and Rs 1.5 crore in the second year.