According to the current procedure, India DTH players requiring satellite transponders capacities are required to apply to Antrix. When Antrix informs the players about the unavailability of capacity on its INSAT satellites, India players are then required to place a request to Antrix, which then aggregates such requests. Thereafter, Antrix floats the aggregate requirements to foreign satellite operators and based on negotiations, transponders capacities are contracted for Indian players.
Challenges related to the process
According to Casbaa-PwC report, the capacity of 75 per cent of India DTH operators is met through international satellite operators, all such demands are still routed through Antrix/ISRO. Antrix sources international transponders capacity and then sub-lets it to Indian DTH operators through back-to-back agreements.
This not only delays the whole process significantly; it also limits the Indian operators’ ability to procure favourable commercial terms through direct negotiations. Further, factors such as the complexity of applying through Antrix, multiple commercial negotiations and lengthy procurement and contracting processes creates significant delays and uncertainities.
Short duration contracts
Contract terms offered by Antrix to foreign satellites continue to be limited to three years. While the reasoning to limit the term was to replace the foreign capacity with Indian satellites once they are available, actual experience demonstrates that this is an unlikely scenario.
The current demand-supply gap clearly highlights the inefficacy of the argument. Considering the long-term nature of the business, a three-year term is thus exceedingly limiting and puts significant constraints on commercial negotiations with transponder capacity suppliers.
Lack of transparency
There is a concern about the lack of transparency with respect to the future plans of launch of satellites by ISRO. For instance, ISRO’s medium-to-long term plans for transponders meant for private Indian players are not available within the public domain.
While as per the 12th 5 Year Plan (2012-17), ISRO has planned to increase its operational transponder capacity from INSAT/GSAT satellites from 198 to 398, no regular updates on the same have been provided. This results in an environment of uncertainty and hinders long-term planning. Also, the procedure of allocation of satellite capacity to DTH providers is not clearly laid out.
Inherent conflict in the multiple roles player by Antrix
In satellite operations, despite of having an open-sky policy in theory, Antrix/ISRO plays overlapping and conflicting roles as a supplier, an intermediary, policy formulator and an arbitrator. This results in a direct conflict of interest scenario. It is against the regulatory best practise adopted in other sectors. This complexity in role continues even today.
PwC launched a report in association with Casbaailtled Capacity Crunch Continues at Casbaa India Forum 2016
