M&A Critique

Airtel: Creating Numero Uno position in VSAT Business

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.

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Padam Singh