Very Small Aperture Terminal (VSAT) provides satellite-based telecommunication and internet access to companies and individuals with applications from your our direct TV at our homes, ATMs, in-flight services to military usage in the remotest of the location. In India, although the VSAT services are regulated by the Department of Telecom (DoT), the operators can setup/install VSAT hubs and devices to communicate with the satellites.
In the past 10 years, only one out of the seven players, NELCO or previously known as Tatanet Services is able to grow and win market share. In 2009 NELCO had 8% of the market and after 10 years it has 24% market share* in the industry while others have seen contracting market share like Hughes (35.77%), HCL Comnet (5.96%), BSNL (5.31%) and Bharti Airtel (27.33%). This trend in market share exemplifies that the Industry is under constant pressure and faced head winds all last 10 years.
With high competition in the VSAT business and in the Telecom Business, Bharti Airtel announced that it will combine their VSAT operations with Hughes Communications India creating a leader in satellite communication with ~63% market share. The merger should bring in efficiencies in scale and operations.
*Source: Alpha Invesco Blog & TRAI Report
Bharti Airtel Limited (BAL) is a public limited company incorporated in 1995 and the equity shares of company listed on the Stock Exchanges. It engaged in the business of providing global telecommunication services with operations in 17 countries across Asia and Africa.
Bharti Airtel Service Limited (BASL) is an unlisted Bharti group public limited company incorporated in 1997. It engaged in the business of supplying hardware and related services for telecommunication networks including Very Small Aperture Terminal (VSAT) related communication services in India. It is wholly owned subsidiary (WoS) of BAL.
Hughes Communication India Limited (HCIL) is an unlisted public limited company incorporated in 1992. It is one of India’s premier networking companies and is India’s largest satellite service operator, offering broadband services under the “Hughes” brand. Its customers include large enterprise and small and medium business across various verticals and consumers.
HCIL Comtel Limited (HCL) is an unlisted public limited company incorporated in 2007. It is engaged in the business of supplying hardware and related services for telecommunications networks including very small aperture terminal (VSAT) related telecommunication services in India. It is Wholly Owned Subsidiary (WoS) of HCIL.
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