The company applied for a virtual network operator license to provide global mobile personal dialog by satellite service and has “received the letter of intent”, one of the persons cited above said. Once the licence is granted, it will give Nelco the option to resell satellite internet services not just in retail markets, but also for newer use cases like portable or on-the-move connectivity using third-party satellite networks, the person said.
The initial nod opens the door for Nelco to enter the satellite broadband services market without owning satellites and its infrastructure, saving on capital expenditure and boosting revenue possibilities.It positions the company to capitalize on a burgeoning sector, as KPMG estimates India’s satellite communications market will reach $20 billion by 2028 from about $2.3 billion a year now.
On 11 August, Nelco signed an agreement with Bharti Enterprises-backed Eutelsat OneWeb to deliver low-earth orbit (LEO) satellite connectivity on land, at sea, and in the air across India, once the services start commercially after the government’s spectrum allotment. The government is finalizing the contours of allocating satellite spectrum to the operators and the related fee. So far, OneWeb, Starlink and Jio Satellite have secured the licences.
After getting the letter of intent, Nelco can begin fulfilling the necessary conditions before receiving the final permit.
The Tata Group company already offers limited satellite communication services, such as bank ATM connectivity and in-flight communication services, by leasing connectivity from satellites operated by the Indian Space Research Organisation (ISRO) and foreign operators. However, this approach is not suitable for large-scale use.
Nelco declined to comment on specific licence applications or their status or purpose.
“Considering that the licensing framework in the country keeps evolving, the company continuously evaluates various licenses which may become an enabler for expanding its business in the future,” Ritesh Kamdar, company secretary & head, legal at Nelco, said in response to Mint’s queries. “In this very way, applying for generic licenses is a standard procedural enablement to ensure the business remains agile at all times.”
The licence would also enable the company to offer internet connectivity by satellite operators directly to smartphones if the government allows direct-to-mobile service in the future, the second person quoted earlier said-both spoke on the condition of anonymity as details are not public yet.
Strategy shift
The resale model, instead of partnering to launch satellites and owning such infrastructure, marks a shift in strategy from 2022, when Nelco had applied for the Global Mobile Personal Communication by Sate