A NEED FOR REFORM: CURRENT LEGAL AND REGULATORY FRAMEWORK

BANEFUL TO EASE OF DOING BUSINESS IN SATELLITE SERVICES SECTOR

Due to sudden change of circumstances and an urgent demand created by the COVID-19
pandemic, there has sudden increase in the use of the internet services throughout the world.
Many enterprises have even started to opt for ‘internet first’ models as customers move
towards online transactions in more numbers. In order to avoid any potential health risks to
the employees, enterprises have started to increasingly depend upon modern interconnected
and automated devices. These devices help these enterprises to consistently monitor business
indicators and entire routine operations with as less human intervention as possible.

With the ever-increasing requirements of global data, rising fiberization of telecom networks
and the slow transition to 5G throughout the world, corporations around the globe have
started to look for satellite technologies in order to leverage it for accessing data and
developing satellite internet solutions for global deployment. Corporations expect these
solutions to have the capacity to propel modern day tech such as machine to machine
communications, internet of things, and especially activities like smart grids, supply chain
management, railways, smart agriculture, etc., and also establish superior connectivity in
remote areas of the country.

In India, satellite technology systems are present almost everywhere if we consider DTH
television services. But except DTH, the usage of satellite systems has not been very
significant. Why? You may ask. It is because of the of complex and troublesome legal and
regulatory frameworks of satellite technology usage in the country. So, in this article I have
decided to put forward some of the important aspects of the regulatory and legal framework
and provide with reforms in certain required areas.

IMPORTANT DRAWBACKS OF THE PRESENT REGULATORY FRAMEWORK

Satellite usage in India is regulated by the Satellite Communications Policy, 1997 along with
the guidelines and norms provided in the year 2000. The telecom licenses and directives
issued under the Indian Telegraph Act, 1885 and Indian Wireless Telegraphy Act, 1993
specify requirements for the services of telecom through satellites and usage or ownership of
wireless equipment as a leverage for satellite connectivity. Time and time again several
concern shaves been raised by various stakeholders in the sector, regarding the burdensome
nature of the regulatory framework and reform will only promote growth. Now, let’s look at
what key aspects of the framework concerns the stakeholders-

RESTRICTION ON USAGE OF FOREIGN SATELLITE SYSTEMS

Modern day private satellite communications systems depend mostly upon the usage of non-
geosynchronous network of satellites or ‘constellations’ that are used to provide network
services throughout the globe. But such systems will have a very hard time in India due to the
hurdles posed by the regulatory framework, which prefers usage of the government-owned
‘INSAT’ system or any other Indian satellite system.

Foreign satellite systems can enter India only after receiving specific government approvals.
But the issue is that securing these approvals is cumbersome because government grant of
approval is contingent upon their satisfaction that the required foreign satellite capacity
cannot be alternatively found on Indian satellites and also that the foreign satellites systems
have significant amount of participation in India. Even if the foreign satellite systems are
granted approval, they need to be reviewed periodically. Telecom Regulatory Authority of
India has also favoured Indian service providers to collaborate with any foreign satellite
systems, but the regulatory framework keeps persisting.

RESTRICTIONS ON LICENSING

Restrictions provided by Indian regulatory framework becomes more definite when telecom
services are provided in India by foreign satellite systems. For satellite-based telecom
administrations permitting standards apparently require the sole utilization of the INSAT
framework for getting the satellite capacity. This successfully discredits the chance of
utilizing foreign satellites for such services accordingly dispossessing several ventures, which
would have been beneficial for the satellite sector.

The licenses also state that the services shall be provided within a ‘closed user group’. This
mandate prevents any king large-scale deployment of telecom services. Furthermore,
providing internet services to the people require separate licensing. There are also other
licensing burdens and securing approvals from various authorities which increase the burden
and prevent foreign satellite services from entering the Indian market.

INCREASING COST OF DEPLOYMENT

The other hurdle that foreign entities face is the high deployment and operational costs. Most
of these costs are driven up the regulatory fees charged periodically for spectrum usage and
satellite capacity allotment. These costs are in addition to the costs incurred while getting the
necessary approvals and clearances from various authorities. Due to these increasing costs
involved, the potential of the Indian satellite sector has not been realized.

REFORMS TO BE IMPLEMENTED

It is very clear that the Indian government is very much aware of the challenges faced by the
satellite sector in the country. In the National Digital Communications Policy, 2018, Indian
government had realized that the regulatory frameworks need to be reformed in order to
promote its primary policy of ease of doing business and also to benefit from the satellite
technologies. TRAI has likewise send several consultations in order to drive change and is
additionally investigating the possibility of allowing the usage of foreign satellite systems to
operate in the country, and to do this they are also looking into the possibility of decreasing
the compliance burden. Furthermore, the government is additionally looking at the lawful and
administrative issues encompassing the plans of action being investigated by expected new
contestants for the deployment of satellite services in India. In consideration of the current
administrative issues, it is important for the significant industry players and new participants,
to effectively engage with the government on such issues and participate in stakeholder
consultations to drive favourable regulatory outcomes.