Satellite and digital connectivity essential for bridging digital divide

At the ongoing TLF 2022, there was a panel discussion in the session 'Space Race and Ground Realities'. The participants were Lt. Gen. Anil Bhat, DG, ISpA and Anil Prakash, DG, SIA-India. The session was moderated by Gajendra Upadhyay, Editor, Voice & Data.

Gajendra Upadhyay welcomed everyone. The space segment, is in many ways, the final frontier for all of us. The space segment is today, overall globally, about a $450 billion industry, and is expected to grow to about $500 billion in the next two years.

The Indian Space association was set up under the vision of the Prime Minister, to address the growing needs of the space sector and make India a global space power by 2030. Please share some thoughts on the background and what is space doing today?

Lt. Gen. Anil Bhatt, ISpA said that In June 2020, Prime Minister and the cabinet took a historical decision to open space to private industry. Thereafter, draft policies on space communication, and remote sensing, were released by the government somewhere in October 2020. The same year, the prime minister met captains of space industry in India, as well as startups. He advised them that they should open an association, which could be a bridge between them and the government, and also help in creating the ecosystem. This where the idea of ISPA came into being.

ISpA formed

We were honored to have the PM for the launch on 11 October 2021. The PM laid down a very significant vision of his way he said the government would be an enabler and ultimately, all space activities would lead to assist the common man. He also talked of innovation being permitted in all the domains and to create the next generation of scientists in India or develop this capacity in the Indian domain for the next few generations, that India becomes a leader in the space economy.

We are already there in the elusive club of the space fairing nations. What was wanted more now was that we also become a global economic hub. That is where ISPA was made. Our primary aim is to ensure ease of doing business and policy stability in the country. And more importantly, encourage and facilitate all domains of space activities. By all domains, space communication, which is primarily for broadband, for design, manufacturing and R&D, in launch vehicles, in satellites, in various payloads, and most importantly, downstream the application of services because the largest segment of the space economy is the applications with that as overall aim what we have looked into is capacity building in the country, ensure international partnerships are made by our private industry to pick up the best Global practices world over.

Also, we look at being an interface between the armed forces, the strategic players and our private industry, because we envisage in the future private industry would also become a supplier for our strategic industry. Most importantly, is to ensure that soft touch regulatory policies are made. The most positive part of that is that we have, and our private industry players have had very intimate interactions with the Department of Space and with In-SPACe in formulating the new policy, which has to come.

The initial discussions took place in October, where the industry point of view was put across by us and other members. This was very positively taken. The last interaction we had was on February 2. As we see it, the government is making one all-encompassing space activities bill, which would cover aspects of satellite communication, remote sensing, sat nav, and all other domains. This policy is in a very advanced stage of being now promulgated. There was an intimate interaction with our industry members and space associations. We are looking forward to this policy to come to open the door finally, for private players to get into.

Anil Prakash agreed with Lt. Gen. Bhat. The role of policy making is done by the government and it is in the positive direction. SIA was participant in all the previous discussions, and we have given our inputs. In order to avoid a misnomer or misunderstanding by satellite communication, it was dedicated by PM himself during the launch. That has made the bureaucracy, and the policymaking body in the country to understand use of satellites.

Very few people know that there are close to about 900 broadcasting channels powered by satellite. There are close to about 12,500 VSAT antennae deployed. There are 50,000 ATMs working and there are close to 6,500 petrol pumps working, that are being powered by satellite. NEMA, which is at the show, talks about opening a show where 3,000 digital screens will be powered by satellite.

Satellite and digital connectivity

We also forget the real use of satellite for providing digital connectivity in the country. We still have more than 53% rural population not connected with satellite. It is an irony in the policymaking in terms of that India still lags behind in the digital connectivity in spite of having slack-led connectivity of labor and disaster mitigation, the roles of defense and national security, and stock exchange. Satellites have done wonders and are performing well. Satellite communication being ubiquitous in nature anywhere, anytime, can provide the connectivity.

ISRO has definitely played a pivotal role in creating the space industry or satellite industry in India. There are a number of large companies that have been established, which should be supported by ISRO. Now they have become so big, they are looking for international co-operation and working with a number of foreign companies. We also have more than 100 startups in the country. That's the equivalent to the startups in Asia Pacific countries.

Policymaking and association are tools to protect their interests and the ease of the business. The startups have a number of issues that they are facing, and that should also be handled cautiously by the government. The role of the association is to help the industry to grow.

Role of LEOs

Upadhyay asked about their assessment of the satellite industry in India, and how do you think the LEO satellites are going to address the needs of broadband solutions in our country?

Lt. Gen. Anil Bhatt said that traditionally and historically, it was the GEO satellites, which were providing satellite communication in India. World over, it has been a disruptive technology. Now, LEOs are being committed by global players. One such global player thankfully, is owned in a large portion by an Indian company, Bharti Airtel. They have launched more than 2/3 of the satellites -- around 450 out of 648. Once this constellation come comes into shape, they would be able to provide high-speed broadband connectivity and capacity throughout the country.

It will help in overcoming the digital divide and connecting the the unconnected portions, where terrestrial communication has been a challenge. It may be because of the cost, or the kind of the terrain, and the large areas and low densities. This is where broadband from LEO has the capacity to deliver. LEO has a large number of small satellites, which are continuously passing over our country and are available to provide seamless, ubiquitous communication all over.

Also, there are no clear figures on the industry size in satellite communication. But, the way their capacities are required in India, both in the rural areas and in the urban areas, and the capacity available today in broadband, there is a very large scope for terrestrial players and satellite communications to co-travel to provide this digital communication to the entire country.

Bridging divide

Upadhyay asked Anil Prakash on how this can bridge the digital divide among the VSAT sector and others other satellite players?

Anil Prakash said that VSATs definitely played an important role, apart from providing data connectivity, as per their licensing condition. DoT has made the licensing condition some changes. They allow also proving service to the cellular mobile communication. Their network is supporting in some places where they don't have the platform. Therefore, the satellite is definitely playing important role.

They also play an important role in the digital connectivity in the northeast area. As for the USO point obligation, they are providing connectivity through the telecom service provider. They have a capability of providing broadband to number of places. The Bharat Broadband network is limited. This has to be connected. Our plea is: why are we waiting for them to connect one by one, why not be connected at once?

There should be enough satellites in the sky, and 10-15% villages can immediately get connected. There are also a number of LEO constellations. OneWeb is there. Another is coming from Amazon, and also, Starlink, and SCS Telesat. In the next five to seven years, there are going to be about 15-20,000 new satellites in the sky.

The beauty of the satellite is that they are close to what the latency is very high. Latency is very low in terms of the country, it is good for very little activity and they are quite capable of providing large bandwidth to the user and their demonstration in other parts of the world has shown that the capability. That will definitely play a very crucial role in the connectivity of rural India or unconnected areas in our country. The licensing condition should be encouraging that.

The one threat we are facing at this moment is the satellite bandwidth, which, as indicated by ITU WRC-90, that is being bifurcated to IoT 5G in the recent consultation process by the regulator, fixing the base price for the 5G option. That is one contention, because if you select spectrum as the raw material for all satellite services and apps, the ecosystem will get choked. It will have a very adverse economic impact in the manufacturing in the private equity investment part in the development of the new sector. There is a policy initiative that deals with licensing from the governments and segment gateways. There is a new set of industries, which is a segment services. That is going to be impacted.

Lt. Gen. Anil Bhatt emphasized one issue that is very critical for satellite communication in India. One, the 28GHz bandwidth, and more specifically the 27.5-28.5GHz, which is an uplink frequency, which has traditionally been with space. The ITU policy goals should be with space for global harmonization.

Plum Consultancy report says the impact of this not being available or it being available will be from $72 to $184 billion to a GDP after five years, and every year. This will be lost out if this frequency is given away from satellite communications. A second issue is of the auctions. Nowhere in the world is spectrum for space auctioned. It is important that it continues that way. It has given them the best administrative method. Unlike terrestrial communication, in space, the same frequency bands are shared by multiple satellites. Hence, if it is auctioned, firstly, there will be a price challenge. Secondly, there will be segmentation of whatever little frequency that we have.

We have raised these with TRAI and all the authorities possible that the status quo for the frequency to continue with space, and it to be given by administrative methods have been emphasized by us.

Upadhyay said that as an association, spectrum was the big issue. There will be other issues relating to interconnection on the ground with the mobile operators. Maybe, the price of the devices that people in remote areas will need to access this broadband.

Lt. Gen. Anil Bhatt said we will look at this policy to come at the earliest and a clarification on this being there that LEO circuits and all even NGSOs are able to provide satellite communications in India. The policy issues and light-touch policies with a single-window are very important. Space would be a single window for all issues matters of space. This is also co-ordinated with the DoT. Our industry players have ease of doing business to set up this whole issue.

The other issue what you are saying is of pricing. In far and remote areas, maybe the ability for players to pay would be not so high. Initially, like connecting the village and panchayats connecting government facilities and all support of the government financially also would be important. It could be in terms of different incentives. We are not going to specify which one will be a subsidy or will it be a fund, etc.

But, in the beginning, this would definitely help to overcome the digital divide. We are expecting that the government will help the satcom industry in the long run. Market forces will take over as volumes increase and as the numbers increase. This will become as competitive as any asset.

Anil Prakash agreed that government has to play a major role in connectivity. We are only asking the level-playing field should be given to the satcom industry in terms of USO funds. USO funds is available for rural connectivity and that should be judiciously given.

Satellite bandwidth is costly in the country and the interest rate is not viable. You have to look at the factors which raise costa all of a sudden at the same bandwidth, which is available to US and the Europe. All of a sudden, when it comes to India, it becomes costly. We need to look at what are the factors involved into it, and we have to see that there are artificial or there are some some levies and taxes that are to put to make it 50% more costly.

If you do away with all this, the cost will definitely come down and be affordable. There are a number of institutions that are limited in any corner, whether it is a government facility or there will be some some mills that some private sector activities will be there that would be needed to be connected. Right now there's no way you can connect them.

The government has a special scheme, the Government user network. They have invested close about Rs. 50,000 crores to BBNL, but it is still not put to use because the last mile is not connected. So, this is very important.

Sunil Mittal said in Davos that we need about five to seven years to get the hub published and connected to the world. India can't wait for five to seven years. A policy should allow this technology.

Startups and use cases

Finally, a word about the new startups and the new use cases.

Anil Prakash said that there are 100-odd startups that need special handling and everyone carries the Indian IPR with them. These need to be protected when they say the startup funding, they shouldn't stand in the queue. You have to make these people successful. If they are successful, the other 500 will follow them, and possibly more would later follow them.

We also requested our members in the manufacturing area on the service area, to help the startup. We have also launched a legal IT cell in our association. We have close to eight or nine law firms who are members of the Space Law Committee. These firms have come forward and set up a legal set to provide pro bono information or guidance for all the startups.

We already have at a startup committee that wou;d work with the space legal cell committee. All are bound by international treaties or international political clause, and potential or liability clause, and anything we want. The organizations have to challenge this into the policy framework that the startup should be kept away from the political clause which are, so they should be sovereign.

Upadhyay added that the ISpA is also closely interfacing with ISRO. It is probably working with some of the interesting startup use cases in agritech, and others using satellites.

Lt. Gen. Anil Bhatt added that for growth of the space ecosystem in India, startups are very critical. We have many startups, which indicate a very strong potential to do very well. Many of them, fortunately, have good financial support from the venture capitalists and from the private sector.

We are essentially providing them as a common platform where they have different capabilities. They can combine their capabilities to give end-to-end solutions. Secondly, we believe in carrying out policy advocacy. Each one of them have to be helped, guided, and that is why the formation of In-SPACe has taken place.

We will continue to work very closely with In-SPACe, which would be the face for the private industry, and for the startups. Department of Space has a new chairman. We could get an opportunity to brief him on the challenges which the new industry is facing and the solutions that are listed. We also are looking forward to his interface with all our private industry players in the future.