“Our mission is to focus on high complexity high-added value networks. We are looking at completely redefining and revolutionizing some of the system architectures and applications.”

Voice&Data: Tell us about your perception of the Indian market.

Vagan Shakhgildian: India is probably one of the most dynamic economies in the world. The economic indicators are very positive for India and for its blooming telecom market. It is a country of a large population. It is asserting itself more and more from what we can see in the international arena. It is participating in many international missions, providing infrastructure to the neighbouring countries including SAARC countries. So its influences go far beyond the borders of India.  A lot of Indian telecom companies have successfully forayed into African and Asian markets.  To us, as far as the satellite industry is concerned, that is a very good sign.

Voice&Data: In India, it has been said for a long time that somehow other technologies have been able to prevent the VSAT industry from growing and, in various policy documents, which have come out over the last 20 years or so, VSAT has sometimes said to be neglected. So how hopeful are you that VSAT will be a big market for you as well as other satellite players?

Vagan Shakhgildian: Well, I am very hopeful. Why? Well, first of all, I will start with specifics related to ourselves. We are a specialist VSAT manufacturer, not a 1 billion dollar company. We are a company that has experience—that has managed to grow in the past 7 years. And there is more than ample opportunities for us in India and elsewhere. So for us, the only way is up. I want to continue this growth at breakneck pace if I may.  We are not afraid of the growing size of the addressed market because we are growing at a much higher pace. And we are growing because we are taking market share away from competition.

Secondly, I think VSAT is, perhaps, not playing the same role, which it was playing way back in 1992. Everything is developing including the latest satellite technologies such as high throughput satellites or HDS, high throughput orbits, new frequency bands etc. They are driving the satellite industry and reshaping it in such a way that it will once again become more of mainstream as opposed to a niche technology.

One thing I assume everyone knows here is that out of all communication, media satellite is the most expensive because it costs money to launch it. However, the price of the satellite bandwidth megahertz over the last 3 to 4 few years has all over the world been dropping dramatically. So, at the end of the day, satellite once again is likely to become mainstream.

Mobility is one niche or vertical where the use of satellite is integral. No other technology can play substitute for that. High-speed satellite broadband at sea was until recently a prerogative for super yachts because of the very high price of the bandwidth, equipment, and infrastructure. So if you look at the rate card of major global players, there are so many zeroes there.

Together with our partners, we were able to change that notion. So what used to be $ 60,000-70,000 terminal has now become, through various technological advancements, $8,000-10,000 terminal.  It is now affordable not only to high-end boat operators but also to operators of fishing boats. Therefore, it is a practical learning point. We are currently deploying 19,000 vessels, which may end up being the largest maritime network in the world. So whole new market niche, which did not exist 2 years ago, has been created and we are looking to propagate and proliferate this all over the world.

Voice&Data: In satellite, it is not just about the equipment cost. It is also about the service cost. So, similarly, do you also see service cost going down? In India again, the perception is that the satellite service cost is still very high.

Vagan Shakhgildian: Bandwidth costs over the last few years have been slashed dramatically if you look at some analysts reports...

Voice&Data: Even in India?

Vagan Shakhgildian: Well, in India, it is an interesting situation. I am not an expert on the bandwidth cost in India but the competition here is harsh and somewhat restricted because foreign satellite operators are not allowed to operate. They are allowed to operate only with some specific authorizations. Such authorizations, known as landing rights exist in other countries as well but here the process is perhaps more elaborate. I have been involved in acquiring landing rights for satellites in Brazil. I know that it is not a straight-forward process. However, I think here from what I have heard is much more elaborate. So, therefore, in the presence of restricted competition, obviously, it is difficult to make sure that the prices go down.

Voice&Data: So are you also meeting or in touch with the policy makers and government officials about this aspect of the market?

Vagan Shakhgildian: Well, you see we are so focused on what we are doing, which is innovation in the field of equipment, manufacturing, marketing, and rolling out solutions that perhaps for us it will be a little bit difficult. Currently, we have been expressing our views directly or through various partners. However, we, until now, have not made it our priority. So I think there are plenty of other project players who, probably, should be doing this.

Voice&Data: In India what would be some of the key areas you would be focusing on?

Vagan Shakhgildian: Our mission is to focus on high complexity high-added value networks. Our group is not about copying what someone else is doing and offering the same at a 15 % lower price. We are looking at completely redefining and revolutionizing some of the system architectures and applications. So creating new markets through technology innovation such as broadband connectivity for fishing boats and anything that works towards that—whether this is super compact or so-called man pact terminals for the national defence or providing national broadcast here in India with a very compact and low cost highly reliable infrastructure, such as hobs and remote terminals for video news gathering or analyst systems for either sector with a national defence. We will be doing all of that. So it is a high-end application with high throughput data with video. These are the areas we are focusing on.

Voice&Data: What will be your go-to-market take here in India? Will it be directly or you will be working with partners and system integrators?

Vagan Shakhgildian: We will be working with partners and system integrators. We have selected several of them. They are helping us participate in certain programs and successfully develop more partnerships with larger organizations, which have been obviously very active for decades in the field of Satcom and defence electronic system. We are working with all of them without any exception and we are fortunate to have a couple of loyal and forward-thinking partners who are helping us to develop those partnerships.

Voice&Data: You also talked about the neighbouring countries. You would be looking at or the India person would be looking at the neighbouring countries also?

Vagan Shakhgildian: A number of programs that the government of India executes are aimed at advanced economic development in the SAARC countries. We have been fortunate to have got a couple of contracts—one of which has the infrastructure deployed here in Delhi and the network in Maldives. And this is all a reality as we speak because those programs are actually both driven and funded by India. So naturally, our Indian partners are involved in those.

Voice&Data: Other reasons why other a lot of technology companies come to India is for the talent that we have in India? Is there any thought on having some sort of a development centre here in India?

Vagan Shakhgildian: Yes. It is under consideration. In fact, that is one main purpose of my visit to India. We were discussing this with our group and partners. We are on the course of establishing a support centre right now. We are looking to provide systems and solutions engineering solutions to countries such as Indonesia, Singapore, and Australia because our system is quite complex. So solution and system engineering will be done here in India and it will be addressing the needs of the aforementioned countries.

Voice&Data: Nothing regarding manufacturing?

Vagan Shakhgildian: We are fully prepared to start manufacturing in India. Why I keep saying that our product our architecture is revolutionary is that UHP  is essentially a breakthrough technology that is building a piece of infrastructure or network control, base stations, and central stations using principles of distributed computing to achieve high-processing capability required. So, therefore, the manufacturing process itself is quite straightforward, which is not to say that a less straightforward process cannot be established here in India. Of course, it could be. However, as of now, case areas to establishing and manufacturing centres in India are less than other technologies out there.

Voice&Data: You have sort of repeatedly used this word revolutionary and disruptive innovation. So how is UHP product or UHP technology different from the ones which are currently here in India?

Vagan Shakhgildian: We are transporting bits and bytes over the satellites…over voice calls or video calls and so forth. However, we are doing it a little bit differently. Our universal hardware platform is thoroughly software refined architecture, which actually supports all network topologies—something that alternative technologies can’t do. If you look at our processing modules we were able to come up with hardware architecture and embedded software that achieves the highest processing capability measured in any metrics such as packets per second on compress, voice calls per second, per cubic inch, and per single watt of consumed power. It is able to process 200,000 packets per second as well as connect to two networks or two satellites at the same time. It is a very advanced microwave transmitter and receiver, very efficient, very advanced communication protocol as well as very powerful IP router. It can even at that platform act as a master controller, which assigns bandwidth to up to 2,000 remote stations in a dynamic fashion. So we are far ahead of the competition.

Voice&Data: How does it compare with competitors in terms of pricing?

Vagan Shakhgildian: Well, you see, we are looking at achieving those kinds of breakthroughs. So before I address your point about pricing head-on, I would like to talk about something else also. We have a major network in Mexico. It is a very big media company in the Spanish speaking world. They were using two VSAT networks from two different vendors in the past. One of them was European group that supplied to them the best technology for news gathering. So you had one rack worth of equipment taking care of the satellite for news gathering and then you had two full racks worth of equipment taking care of connectivity for UHF transmitters all over Mexico. Therefore, three racks worth of equipment in a data centre. Now, in the middle, there is one more rack. However, only one core of that rack is occupied and that is our equipment.  Those other three racks are no longer in use. Our equipment occupying the only quarter of the rack has taken over the functions. Believe me that equipment was not implemented some 100 years ago. That equipment is very recent and is still kind of cutting-edge. So to speak, we were able to provide a factor of 12 saving in reality. It gives you an idea that I am not claiming that we are 12 times cheaper or lower cost but certainly that is another way that you have looked at this. Any engineer would say that well I m dealing with some sort of a different generational technology. There is something that these guys are doing differently. So there is a significant gain in pricing and as far as remote terminals are concerned, it is comparable. We are certainly not 12 times low cost compared to Hughes but it is comparable. However, when you look at through the high-end terminals such as those maritime terminals, then there is a factor of 3-4 difference in our favour. Our mission is not to come into a kind of traditional broadband connectivity network with some magic numbers that others use for VSAT terminals. We are coming into higher niches such as high-throughput maritime connectivity, connectivity for media organizations and so on and offering high-end products 5 times cheaper. That is what we are all about.

Voice&Data: How big do you think your business would be here in the next couple of years’ time?

Vagan Shakhgildian: Well, when we started we were zero and now we are talking about 4 to 5 networks and I think 3 have already been awarded, one has been installed, and two are in the process to be shipped and will be installed in the coming months. So we have some huge infinite growth rate right now because if you divide anything by zero you will get a very high number. So that sort of growth is difficult to replicate—not to say impossible. I think that in two years time we will definitely be a dominant player in the field of private VSAT networks. In the field of private hubs, whether it is for state government, police force, Indian navy, Indian air force, we would like to be one of the top players.

Voice&Data: What are some of the concerns do you see can come in the way of growth?

Vagan Shakhgildian: One concern when you are growing at a very high pace is that we need to maintain both the quality of product and solutions. We need to fill those sales and support channels as fast as like any army. You need to ensure the foundations on which you are building new advanced coverage areas are solid.

Ibrahim Ahmed

ibrahima@cybermedia.co.in

Gyanendra Mohan Rashali

(x-gyanendrar@cybermedia.co.i