India’s satellite space is finally getting interest from some big names. US-based satellite services company Iridium has written to the Telecom Ministry seeking an opportunity to be part of a project being undertaken by Bharat Sanchar Nigam Ltd to set up a satellite gateway in the country.

Iridium has said that it should be given a chance to bid for the BSNL project. This follows the Government’s move to initiate a partnership between UK-based Inmarsat and BSNL to provide satellite broadband services.

Inmarsat is a global satellite services provider and was earlier offering services in India through Videsh Sanchar Nigam Ltd. But this service was practically shut down after the Government divested its majority stake in VSNL to the Tatas. Since then the London-based firm has been scouting for partners in India.

A number of local firms, including BPL Mobile (which offers mobile services in Mumbai) and the JK Jain-promoted Jain Studios, had earlier explored a partnership with Inmarsat. The UK firm had also applied on its own for Global Mobile Personal Communications by Satellite licence in India.

Key issue

But the key issue coming in the way of Inmarsat’s India strategy is the requirement to set up an earth station in India. Security agencies have made it mandatory for satellite companies to have a local earth station if they want to offer services here. To meet this condition, TRAI had proposed that BSNL could be given funds to build the satellite gateway and then offer services through a partnership with Inmarsat.

However, Iridium, in a letter to IT and Communication Minister Ravi Shankar Prasad, has said that selecting a partner without a transparent and fair process could result in higher costs and inferior services. “If simply awarded to Inmarsat, India will deny itself the advantage of superior services offered by better satellite technologies,” Iridium said in its letter.

Consortium of FIs

Iridium had earlier formed a consortium of financial institutions such as the Industrial Development Bank of India, State Bank of India and Infrastructure Leasing and Financial Services. They had together invested $70 million for a 5 per cent stake in Iridium LLC and a further ₹126.09 crore in the Iridium gateway in Pune. But this venture did not take off, after which Iridum was forced to seek bankruptcy protection in 2013.

BK Syngal, former Chairman of VSNL, said the Government should not entertain any proposal or requests that delays satellite phones in India. “Such requests only delay the decision making. If the Indian government has decided to do this project with Inmarsat, it should go ahead with it. In case, Iridium wants to re-enter India then it can present its case separately.

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