Satcom not a priority area, but open to partnerships in future: Vodafone Idea CEO

A major growth story in the telecom industry exists in the wireless terrestrial market through 4G and 5G services and not satcom services, the Vodafone Idea official added.

Satellite communications or satcom services are not a priority area for Vodafone Idea, but a top executive said the company is open to exploring the segment through the partnership route if it offers good business opportunities in the future.

“Satellite is currently being contemplated, but nobody is offering that, and yet there is a divergence of views between two other industry players. I don't think it is happening very soon, but as and when it happens, we will evaluate,” Akshaya Moondra, chief executive officer at Vodafone Idea, told Moneycontrol in an interview.

Moondra said that a major growth story in the telecom industry exists in the wireless terrestrial market through 4G and 5G services and not satcom services.

“Satcom may happen later, but today, we believe it is not the best use of capital. Satellite business has been thought about covering far-flung areas where normal coverage is not available and in the case of emergencies. But it is not a priority area for us,” he said. “...maybe if there is merit in a telecom operator having that then we could look at a partnership.”

Eutelsat OneWeb, Starlink, Jio Satellite Communications and Amazon are vying for a portion of India’s satcom market, which could offer significant growth prospects.

Eutelsat OneWeb has already received the trial satellite spectrum in both the `Ka’ and `Ku’ bands for 90 days and has started using the demo airwaves to run advanced trials with key customers. It is the only satcom player with mandatory authorisations from the space industry regulator, India National Space Promotions and Authorisation Centre (IN-SPACe).

Elon Musk’s Starlink is seeking a global mobile personal communication by satellite services (GMPCS) licence and trial spectrum through the administrative route to start piloting its services in the retail consumer space before a commercial launch once it secures all necessary approvals.

In the coming days, the telecom department may issue a letter of intent (LoI) and trial spectrum to Starlink for its satellite communications services. The approval could coincide with Musk’s India visit on April 21 and 22.