Satellite operator SES looks to set up India arm; costs for DTH players may fall
NEW DELHI : Luxembourg-based SES, which has a joint venture with Jio Platforms in India, has applied for a satellite-bandwidth-provider licence to set up a local arm, two senior executives with direct knowledge of the development told Mint. The European firm's entry is expected to bring costs down for domestic direct-to-home (DTH) TV players, who have to lease satellite bandwidth through the Indian Space Research Organisation (Isro). The license, being processed by the Indian National Space Promotion and Authorization Centre (In-Space), will allow the firm to offer satellite capacity directly to its DTH and very small aperture terminal (VSAT) satellite broadcasting clients, including Bharti Airtel Ltd and satellite bandwidth service provider Hughes Communications India.
"At present, Isro would lease our satellite bandwidth through its commercial arm, NewSpace India Ltd (NSIL), which used to then offer the capacity to clients via one-year contracts. This gave us less room for commercial independence, which will now change," said the executive. NSIL offers the satellite capacity at a 5% markup, according to industry stakeholders.
India’s direct-to-home (DTH) satellite TV market saw its four top service providers—Airtel, Dish TV, Sun Direct and Tata Play—clock $1.33 billion in revenue in 2022-23, according to company filings with the Registrar of Companies as of December 2023. The 2023-24 industry figures are yet to be disclosed. However, the market is shrinking.
The number of paid DTH subscribers fell by 3.1 million to 63.5 million in 2023, showed data published by the Indian telecom regulator, Telecom Regulatory Authority of India, on 23 April. The 2023-24 revenue, as a result, is expected to see a decline. Nevertheless,
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