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NEWS LETTER
JAN 2022/02
Thought Leaders for the Satellite Communication Industry in India
Dear Patrons,

This sector has for very long been on the back burner and the private industry participation was limited till very recently. Now with the new encouraging measures and policy interventions in India, the private sector players, both national and global, are looking forward to making a mark in the space sector and securing a strategic position for India in the global space economy.

On behalf of the Satellite industry, SIA-India has made a represent of the industry's position and submitted some key, high priority recommendations for the sector in the Union Budget FY 2022-23. The recommendations have been arrived at with extensive deliberations between the industry pundits and are important for the sector to succeed and achieve its full potential. This will help the space industry contribute to the Government's efforts towards import substitution, FDI inflows, GDP growth and employment generation. In the true sense of the word, sky is NOT the limit for this sectors growth path.
To read the detailed submission please click here: https://bit.ly/3qCvkIN

Spectrum is national resource and it is duty of policy maker and regulator to carefully disburse use of spectrum for the various technologies which intend to provide services of public good at large. Satcom players have long been voicing concerns over Spectrum allocation and all eyes are now on the regulator to see if a balanced approach is followed in auctioning of the spectrum bands, taking into consideration the needs of various sectors to ensure efficient take-up whilst generating a reasonable value to the Government.

The TRAI had released a detailed consultation paper to discuss modalities for auction of 5G spectrum bands, including pricing, quantum and related conditions. The last date of submission was 10th January 2022. SIA India in its Response to the TRAI Consultation Paper "Auction of Spectrum in frequency bands identified for IMT/5G" gave a detailed justification on the grant of access to key spectrum bands for the satcom industry.

Offering excessive spectrum resources in the upcoming 5G auction poses the risks of the spectrum being unsold or, even worse, underutilised by terrestrial players at the expense of other players such as Satellite Operators. These outcomes will result in a costly regulatory failure for India through loss of substantial overall economic opportunities with the Indian citizens being denied the benefits of high-demand, advanced satellite broadband services and risk lost GDP increases per annum to India's economy of up to USD 184.6 billion by 2030 and associated FDI and employment generation benefits. The impact of the loss of C-band spectrum in the 3.6-3.67 GHz band alone will be felt across the entire INR 700 Bn Indian broadcasting industry carrying 900+ registered channels to 21 Cr Households in urban and rural India through ~1730+ digital platform operators and 50000+ cable operators, provides direct and indirect employment to 1.83 M people.

The policymakers and regulators must therefore carefully assess the requirements of satellite and IMT in deciding on the allocation of the Ka band and C band. This will need a serious and careful consideration of the level of broadband infrastructure at present, the needs of those in unserved and underserved regions, emerging satellite fixed and mobile applications in other industry sectors such as aeronautical and maritime, and the associated economic value and trade-offs involved. The detailed submission by SIA-India can be accessed at https://bit.ly/3GJ46Wr
Potential economic impact of satellite broadband in India
RETRACE Year 2021 for the SATCOM Industry
The cabinet decision to allow private players to be co-travellers in the country's space journey is a remarkable move. The space industry in India since then is going through some unprecedented transformation which is redefining India's positioning in the global space stage. India's space journey in the past couple of years represents a striking shift in the governments' vision and strategy. India, unquestionably, holds a strong spot to seize a 10% market share in the global space sector, and to be a $50Bn space economy by 2030 creating a ripple effect on indigenous manufacturing, ancillary businesses, R&D, investments, employment, GDP and socio-economic growth.

The year 2021 began with series of new reforms, policy decisions, big launch plans and for the SATCOM industry in India.



The year 2021 has seen some pertinent reforms in the satcom sector with ISRO opening up its facilities for private firms and start-ups to use their infrastructure, a much needed support for the NGPEs. Now the labs, testing facilities and quality facilities will be provided to the firms without having them to invest in infrastructure, giving them a great financial cushion.

The funds have been flowing into India's space sector, however the deal size is quite negligible in comparison to the US and Europe or even Japan and China. In September 2021, ISRO Chairman Dr. K Sivan stated the urgent need for liberalization of space FDI policy which will pave ways for foreign space companies to invest in India. Indian Spacetech startups have raised a total of nearly $31 Mn in funding in 2021.

In India, the space budget allocation is the lowest amongst the major APAC Space faring countries. Global positioning is a strategic move and depends on government policy, budget allocation, vision, target and mission. India's space budget allocation needs to go up to match with the other space faring nations.
Country wise Space Budget Allocation (In Mn USD)
What year 2022 holds for the sector
The DOT and TRAI are exploring ways to optimize the country's spectrum resources and year 2022 will see if the satellite and the gateways are allowed to operate on the spectrum in the 27.5 GHz - 28.5 GHz band or not. The industry hopes the regulators and the govt. arrive at what is more realistic and reasonable for satcom and terrestrial sectors both.

The year 2021 has already set the tone for the next year with critical policy reforms underway. In short, the year 2022 heralds a new era for the space industry to deliver innovation, growth and employment generation.

The wish list for the Satcom Industry for the year 2022 are;
  • Efficient Spectrum Appropriation
  • Comprehensive SpaceCom Policy
  • Enactment of Space Act
  • Ground Segments to have a separate License
  • 100 % FDI under automatic route
  • Limited space liability and insurance policy
  • Inclusion of space sector in Defence Offset Obligation
  • Product Linked Incentive Scheme (PLI) for space manufacturing
  • Space start-ups should be dealt with hand in glove
  • CSR to be utilized for Space R&D
  • International cooperation in mitigating outer space threat by the space debris
DG connect:

"India is large country with large swathes of landmass and a huge population where majority of the population lives in rural or semi-urban areas. They require digital connectivity same as people who live in urban towns. Govt focuses to provide them connectivity vis-a-vis various policy reform. Yet, somehow there is gap in intent and implemention. Bifurcating satellite frequency for 5G auction is one of them. We consider it important to recognize the current situation in terms of spectrum supply and demand and to adopt a more balanced approach in auctioning of the spectrum bands for 5G/IMT services, taking into consideration the needs of various sectors as well as to ensure efficient take-up whilst generating a reasonable value to the Government." Anil Prakash (Director General- SIA-India)
 
The fortnight at a glance:
Bifurcating satellite bands for 5G may cost India $184 bn: SIA-India
The Satcom Industry Association (SIA-India) said on Wednesday that bifurcating satellite bands for the upcoming 5G auction is likely to incur a massive $184.6 billion loss to the country...
Indian operators urge government to reduce reserve price for 5G spectrum
Indian telecom operators have submitted comments to the Telecom Regulatory Authority of India (TRAI) asking the government to cut the reserve price for 5G spectrum, according to local press reports...
India's 1st space PSU chief's job open to pvt sector
India's first space PSU, NewSpace India Limited (NSIL), may soon be headed by a private sector honcho if the department of space (DoS) and the Centre find a suitable candidate, reports Chethan Kumar...
What is 5G mmWave spectrum?
Telecom service providers are currently testing 5G in several pockets of the country. But the contention over allotment of this millimeter-wave spectrum remains unaddressed. Let us find out what it is...
BBNL to soon offer satellite net in N-E, wraps up Arunachal pilot
A decision on the commercial roll-out of the project and the tariffs of the packages for the customer is likely to be taken after the test project is completed in more states, the official said...
Giving 28GHz waves for space applications won't hit 5G services: ISpA
The Indian Space Association (ISpA) has said deploying 28 GHz spectrum band for space applications would not impact next-generation (5G) telecom services by terrestrial network...
Space sector in India needs to be developed for business opportunities: Incoming ISRO chief
For this the space budget should increase from the present Rs 15,000-16,000 crore, which is just a small percentage of the country's economy, to more than Rs 20,000-50,000 crore, he said...
Vodafone Idea opposes satellite players' demand for separate earth station licenses
Major players are asking for delinking of gateway licenses from service providers Vodafone Idea has opposed satellite players' demand for delinking license of satellite earth stations from...
Startup spree: How Indian engineers can rejuvenate India's spacetech ecosystem
With Indian startups building cutting edge, satellite communication technology for space and on ground, which can help India penetrate into rural broadband as well as solve similar needs in developed...
Airtel, Hughes form JV for satellite broadband
Operational as HCIPL, the entity combines the very small aperture terminal (VSAT) businesses of both companies to offer flexible and scalable enterprise networking solutions using satellite connectivity for primary transport, back-up and hybrid implementation...
Tata's Nelco bags contract worth Rs 40 cr from ONGC to enhance communication infrastructure
Under the contract terms, Nelco will supply, commission, and maintain ONGC's very small aperture terminal (VSAT)-based network. This network will also be used to enhance the...
To expedite 5G auction, DoT to meet MoD, ISRO, other officials
The DoT, officials said, wants this "formality" to be completed as soon as possible so that the spectrum auction for 5G airwaves can be held as early as possible during the next financial year...
Satcom is not trying to replace telecom networks: Nelco CEO
We are also a B2B (business to business) player. We believe that the best value comes when you are complementing each other rather than try to cut each other because each of us have got...
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Email: [email protected]   |   Phone: +91-11-4604 8743
Website: www.sia-india.com
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