The company applied for a license for the virtual network operator to provide global mobile personal communication by Satellite Service and “received a letter of intent”, one of the above said. Once the license is granted, Nelco will give the possibility to sell satellite internet services not only in retail markets, but also for newer cases of use, such as portable or continuing to connect with satellite networks of third parties, the person said.
The initial nod opens the door for Nelco to enter the satellite broadband market without owning satellites and its infrastructure, saving capital expenditures and increasing the possibilities of income. It will place the company to earn a developing sector because it estimates that the Indian satellite market will reach $ 20 billion out of approximately $ 2.3 billion per year by 2028.
On 11 August, Nelco signed an agreement with Bharti Enterprises-under-edged Eutelsat Oneweb on the delivery of the satellite connectivity of the low country (Leo) on Earth, at sea and in the air throughout India as soon as the services begin commercially after the government spectrum. The government completes the outlines of the allocation of the satellite spectrum to operators and the related fee. Meanwhile, the licenses have provided Oneweb, Starlink and Jio Satellite.
After obtaining a letter of the intention, Nelco may begin to fulfill the necessary conditions before receiving the final permit.
Tata Group already offers limited satellite communication services, such as the connection of banking banks and communication services for flight, renting connectivity from satellites operated by the Indian Universe Research Organization (ISRA) and foreign operators. However, this approach is not suitable for extensive use.
Nelco refused to comment on specific license applications or their status or purpose.
“Given that the license framework in the country is constantly evolving, the company is constantly evaluating various licenses that can become an activator for expanding their business in the future,” said Ritesh Kamdar, secretary and head of Nelco, in response to Mint questions. “The application for a general license is therefore a standard procedure permission to ensure that the company always remains agile.”
The license would also allow the company to offer an Internet connection from satellite operators directly to smartphones, if the government allows direct mobile in the future in the future, the other person said previously said the state of anonymity because details are not yet public.
Shift
The model of further sales, instead of partnership in the start of satellites and ownership of such infrastructure, is a shift in the strategy of 2022, when Nelco applied for global mobile personal communication from Satellite (GMPCS) license in November 2022 to provide such services in cooperation with the Canadian satellite operator Telesat.
In 2020, Nelco concluded an agreement on cooperation with Telesat. In 2022, both companies even carried out their first demonstration in orbit in India with the Satellite Leo Stage 1.
This plan would make the company a competitor of Starlink, Oneweb, Jio and others in The Fray. In 2023, however, he withdrew his request submitted to the Ministry of Telecommunications (DOT). Industry management attributed this to the delay in the start of the satellite constellation Telesat – is still evolving.
During the 82nd annual General Meeting of the Company (AGM) in June, many shareholders asked Nelco as to whether foreign players like Starlink will affect its plan and whether Elon Musk is looking for a possible link with the company owned by Elon Musk.
In response, the management said it was a discussion with several Satellite operators Leo and Geo (GeoStationry Earth Orbit), so it can offer a multimodal service.
“For us, it is important to have the best possible satellites, whether it is Leo, Geo or Meo (Mid’s middle orbit), and therefore we are still looking for all these satellite constellations that come and cooperate with the satellite operator offering our services,” said PJ Nath, CEO and CEO of Nelco.
“That’s why we look at it as an opportunity for us rather than the threat to the market in which we work,” he said, adding that the company is not planning to launch its own satellites.
Nelco already holds a very small aperture terminal, Internet service providers and flight licenses and maritime communication.
The VSAT license allows companies such as Nelco to provide users of Internet and data services based on fixed sites such as ATMs, remote offices, schools or oil kits. These settings use a small satellite bowl for direct connection to the satellite in space.
While the VSAT is useful in areas where mobile or fiber networks are not available, it usually offers limited bandwidth and higher latency compared to traditional Internet, which is more suitable for basic data tasks for business use rather than high -speed streaming or extensive consumer use.
In FY25, Nelco revenues dropped by 5% to £305 crore while its net profit dropped by 60% to £9.5 crore due to a decrease in income and a one -time impact of the settlement of a long -term tax dispute.
During AGM, the company attributed a decline in income to muted market conditions and slower than the expected growth in some key markets where it operates.
Nelco’s share in the current SATCOM Services market is 35-40%. Commands BSNL LTD and Hughes Communications India, a joint venture between American Hughes Network Systems, LLC and Bharti Airtel. For the next two to three years, Nelco is trying to spend £40-45 crore in Capex per year.
(Tagstotranslate) Nelco owned by Tata Group
