The document discusses the controversial 2005 agreement between Antrix Corporation (ISRO's commercial arm) and Devas Multimedia to lease 90% of the S-band spectrum capacity on two satellites for Rs. 1,000 crore. However, allocating 70 MHz of spectrum without competitive bidding and giving Devas custom satellites raised allegations of losses of Rs. 2 lakh crore. The emerging strategic needs of defense and other agencies for the S-band spectrum led to the contract's annulment in 2010. Many questions remain unanswered regarding this deal.
The document discusses the controversial 2005 agreement between Antrix Corporation (ISRO's commercial arm) and Devas Multimedia to lease 90% of the S-band spectrum capacity on two satellites for Rs. 1,000 crore. However, allocating 70 MHz of spectrum without competitive bidding and giving Devas custom satellites raised allegations of losses of Rs. 2 lakh crore. The emerging strategic needs of defense and other agencies for the S-band spectrum led to the contract's annulment in 2010. Many questions remain unanswered regarding this deal.
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The document discusses the controversial 2005 agreement between Antrix Corporation (ISRO's commercial arm) and Devas Multimedia to lease 90% of the S-band spectrum capacity on two satellites for Rs. 1,000 crore. However, allocating 70 MHz of spectrum without competitive bidding and giving Devas custom satellites raised allegations of losses of Rs. 2 lakh crore. The emerging strategic needs of defense and other agencies for the S-band spectrum led to the contract's annulment in 2010. Many questions remain unanswered regarding this deal.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
2G WAS SMALL , NOW WE HAVE S BAND What is the S-Band? • S- band ( 2- 5 GHz) is coveted by telecom majors as it could multiply the speed and volume of data transfer. ISRO has 150 Megahertz of spectrum width in this band. • The S-band spectrum is crucial for several strategic and societal services. The Integrated Space Cell of IDS, Ministry of Defence, has projected a need for 17.5 MHz in S-band , another 40 MHz during the 12th Plan period and an additional 50 MHz during the 13th Plan period. • Armed Forces have also projected the need to build S- band satellite capacity for national security-related mobile communications. • There are further demands for S-band transponders from international security agencies viz., BSF, CISF, CRPF, Coast Guard and Police • Indian Railways have also projected S-band requirements for train tracking. • In view of these emerging requirements, there is an imminent need to preserve the S-band spectrum for vital strategic and societal applications CONTROVERSIAL PARTIES • DEVAS MULTI MEDIA
• INDIAN SPACE & RESEARCH ORGANIZATION
About Devas Multimedia • In 2008, DEVAS received an approval from India’s FIPB for raising $75.75 million from German major Deutsche Telekom. At that time, the company didn’t even have a website, and very little could have been ascertained about them, and what they were planning to do • Devas has three ISRO veterans on its board and its chairman M. G. Chandrasekhar is a former Scientific Secretary of ISRO • Devas delivers advanced Internet-based multimedia and interactive data services to hand-held mobile terminals via unique IP- based platform. Devas’ integrated satellite system ensures seamless connectivity throughout India. What Is The Controversy? • In 2001, Cabinet had decided on a multi –stage bidding process for new unified telecom licences & spectrum sale but existing service providers were allowed to migrate to new regime by paying a low fee • TRAI chairman Pradip Baijal, said even new applicants should be charged same fee • This allowed new applicants to avoid bidding for spectrum and pay less • The controversial deal involves ISRO’s allocation of 70 MHz of the S band without competitive bidding to Devas Multimedia for 20 years • Recently, BSNL and MTNL were allotted only 20 MHz for Rs 12,487 Crore. But for allocation of 70 MHz to this private operator, the government is charging only Rs 1,000 Crore • Alleged loss due to this was Rs 2 lakh Crore • Devas Multimedia has also been given two custom-made satellites and 10 transponders for use • Agreement, dated January 28, 2005, between M/s Antrix Corporation Ltd ,( a public sector undertaking and arm of the Department of Space, Government of India) and M/s Devas Multi Media Private Ltd for lifetime lease of 90% capacity of S-band Transponder of 2 satellites, built by the Indian Space Research Organization (ISRO) [GSAT -- 6 and 6A]. • ISRO has admitted that UC & SC were not informed that G-SAT6 & G-SAT6 A were planned for exclusive use by DEVAS MULTIMEDIA while seeking clearance • The ISRO is under the department of space which is under Prime Minister • There were also certain concerns on the technical, commercial, managerial and financial aspects of Antrix-Devas contract, such as severe penalty clauses for delayed delivery of the spacecraft and for performance failure/service interruptions, violation of ICC guideline of 'non- exclusiveness' in leasing the capacity, the contract enabling Devas to sub-lease the capacity without any approvals which could even given rise to security concerns. CURRENT STATUS • Keeping in view the emerging requirements for S-band, In 2009 DoS began a comprehensive review of the Antrix- Devas deal and In July 2010, decided to annul the contract • The PM has denied any loss of revenue . • There are a lot of questions that are still unanswered. Please follow the newspapers for further information yo u ank Th