Airtel: Creating Numero Uno Position In VSAT Business

Very Small Aperture Terminal (VSAT) provides satellite-based telecommunication and internet access to companies and individuals with applications from your direct TV at our homes, ATMs, in-flight services to military usage in the remotest of the location.

- Padam Singh

In India, although the VSAT services are regulated by the Department of Telecom (DoT), the operators can setup/install VSAT hubs and devices to communicate with the satellites.

In the past 10 years, only one out of the seven players, NELCO or previously known as Tatanet Services is able to grow and win market share. In 2009 NELCO had 8% of the market and after 10 years it has 24% market share* in the industry while others have seen contracting market shares like Hughes (35.77%), HCL Comnet (5.96%), BSNL (531%) and Bharti Airtel (27 33%). This trend in market share exemplifies that the Industry is under constant pressure and faced headwinds all last 10 years.

With high competition in the VSAT business and in the Telecom Business, Bharti Airtel announced that it will combine their VSAT operations with Hughes Communications India creating a leader in satellite communication with -63% market share. The merger should bring in efficiencies in scale and operations.

Bharti Airtel Limited (BAL) is a public limited company incorporated in 1995 and the equity shares of a company listed on the Stock Exchange. It engaged in the business of providing global telecommunication services with operations in 17 countries across Asia and Africa.

Bharti Airtel Service Limited (BASL] is an unlisted Bharti group public limited company incorporated in 1997. It engaged in the business of supplying hardware and related services for telecommunication networks including Very Small Aperture Terminal [VSA D related communication services in India. It is a wholly-owned subsidiary [WoS) of BAL.