VSAT firms look beyond Isro

Very Small Aperture Terminal (VSAT) operators, including Hughes Escorts Communication, HCL Comnet and Bharti Broadband, have sought to break the monopoly of the Indian Space Research Organisation (Isro) by uplinking to foreign satellites.

These VSAT operators have said Isro's INSAT series of satellites use old technology and are at least 30 per cent costlier when compared to foreign satellites that have footprints over India.

"Broadcasters and Internet operators have been allowed to uplink to foreign satellites, why can't the government allow VSAT providers to benefit from the new technology in satellite communications," asked BG Bhalla, secretary general, VSAT Services Association of India (VSAI).

VSAI has written to the ministry of communications and the telecom regulator for permission to use foreign satellites.

At present, VSAT operators are allowed to use only the INSAT satellites. According to industry estimates, Isro derives over a third of its income from INSAT through the traffic from VSAT networks. Allowing VSAT operators to use foreign satellites may hit Isro's revenues.

"Unlike the policy adopted by Isro, owners of foreign satellites are not only ready to sell satellite space in small chunks, but also agree to deferred payments. So much so, VSAT operators can pay on a revenue-share basis as their network expands," Bhalla said.

He said VSAT operators would be able to transmit 30 per cent more data through foreign satellites thus bringing down the per megabit price.

"The government has liberalised other sectors in telecom, now they should look at promoting VSAT communications which can go a long way in achieving rural communication objectives. This will also make INSAT more competitive," Bhalla said.