To get insights on the business prospects in the Indian Space market from an external perspective, Satellite Executive Briefing spoke with Jay Gullish, who leads the U.S.-India Business Council’s Digital Economy Committee, Media and Entertainment Committee and Privacy Working Group. Gullish has passionately promoted digital development in more than 20 countries over his 25 years of experience in government, industry, and civil society across the telecoms, information technology, satcom, and cyber sectors.
Most recently, Gullish served as a digital policy officer at the U.S. Embassy in New Delhi covering cyber policy, telecommunications, informationtechnology, digital inclusion, and commercial space. While at the Embassy, he aligned U.S. cyber policy toward India across multiple in-country USG agencies and consulates on behalf of the State Department’s Coordinator for Cyber Issues (S/CCI). Gullish was also the in-country lead for the U.S.-India ICT Working Group and the U.S.-India Cyber Consultations. Gullish previously worked in India’s outsourcing industry, and lived and worked in India for over five years. He has international technology experience in southern Africa, Israel, and Vietnam. Excerpts of the interview follows:
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The United States (US) and India have strengthen the defense partnerships for technology transfer programs. And as India has taken a step to privatize the space sector, so is there a possible opportunity for private companies to play a key role in the defense satellite programs?
The recent strife along India’s northern border underscores the potential value of military space, and the stark reality that India’s military space capabilities lags considerable vis-à-vis the country’s civilian, and global commercial capabilities used by militaries worldwide. Here, leveraging the resilience of the U.S.-India defense relationship provides opportunities to leapfrog, such as access to secure, ubiquitous military communications, centimeter and hyperspectral imaging, precision navigation, and other technologies available to the U.S. military.
To date, however, there has not been significant government interactions with respect to military space assets, technology, or systems. The recent conclusion of the COMCASA agreement is a starting point but the technology is highly sensitive so the process will not be quick. India must also commit financially, along with ensuring the intellectual property, export controls and non-proliferation obligations. But the ground reality on the northern border is likely to drive the slow and steady expansion of talks around MILSATCOM hardware, services, and technology.
Interestingly, these same technologies have massive commercial benefit, and the U.S. military has a clear strategy to leverage commercial industry – including non-U.S.-companies – in support of the warfighter. So outside the mil-mil engagement, there is also opportunities for the Indian military to use commercial services. Here, greater understanding of how the U.S. military procures, uses and utilizes commercial services is critical.
As of 2020, there are several satellite service providers in the Indian downstream market, but very few are capable of providing backend satellite architecture. Therefore, will India’s space privatization policy create a competitive circle for US-based companies like ST Engineering iDirect and Hughes Networks?
Hughes is the largest VSAT operator in India, and for years has proposed a Jupiter satellite to provide two-way broadband internet. So obviously any movement in the satcom segment or approval of its satellite would represent a sea change, and would move the entire ecosystem to reassess India.
Currently, India’s use of commercial satcom is limited structurally by regulation and the dominance of the government as the key provider of space segment. As a result, India is more than a decade behind in commercial satcom markets that have migrated rapidly to Ka-band – which India lacks. So there is a mismatch of capacity and demand; VSAT licensing is a pain point; mobility services illustrates the slow pace of rolling out applications pervasive elsewhere. While there continues to be a lot of interest in the India satcom opportunity, and in particular the recently Indian Government space sector reforms, there remains a sentiment that we have seen this all before without, ultimately, any substantial reform or market liberalization.
Yet the focus by the PM Minister, who has publically highlighted multiple times by the Prime Minister – most recently during India’s Independence Day speech, there is once again a sense of opportunity. But industry needs details, details, and details to understand the nature of the reforms on the satcom segment. But one initial observation is clear: the liberalization discussion appears focused on the “space” side of the industry rather than the “satcoms” side.
In the area of satcoms, there is a long-founded understanding that significant reform is needed: an open skies policy across all bands, permission for Ka-band satellites and LEO constellations, streamlining of the VSAT licensing regime, and a light-ouch conformity testing environment. In the United States, for example, The U.S. Federal Communications Commission oversees most, if not all, of commercial satellite regulations. In, no less that three ministries and a regulatory oversee the same.
The Telecom Regulatory Authority of India (TRAI) has long led the need for reform, and in an August 20 statement in an open, public broadband consultation states it best:
"A key concern in the deployment of broadband services through satellite in India is the restrictions imposed on providing satellite bandwidth competitively. An effective exploitation of this resource will facilitate expeditious proliferation of broadband, especially in regions that are technically non feasible through other means. In addition, satellite communication technology is experiencing various changes such as the use of Ka band satellites, which can provide large capacity and higher speeds. To address these issues various action points as follows have been suggested in the Authority’s recommendations dated 17th April 2015 on “Delivering Broadband Quickly: What do we need to do?”
i. ‘Open Sky’ policy should be adopted for VSAT operators similar to what is available to ISPs and broadcasters. VSAT service providers should be allowed to work directly with any international satellite operators.
ii. Separation of Licensor, Regulator and Operator functions in the satellite space domain to conform to best international practices of free markets.
iii. The issue of coordination of additional spectrum in the 2500– 2690 MHz band with Department of Space (DoS) needs to be addressed urgently, so that this band can be optimally utilized for commercial as well as strategic purposes.
iv. Time-bound award of licenses for operating satellite services and Regulating/Opening of Ka band.
Furthermore, India’s National Digital Communications Policy (NDCP), issued in 2018 by the Department of Telecommunications, calls for similar reforms in the space segment and outlines need steps to make the ground segment more efficient. The NDCP called for a “new a “SATCOM Policy” which hasn’t been drafted yet. But perhaps with push to open the “space” by the Department of Space could align with DOT, TRAI, and PMO support for reforms. There is a huge business opportunity, but most importantly change would benefit India industry and society via enhanced broadband, network resilience, disaster management and business continuity.
With respect to the satellite communication value chain mapping, will US companies have an opportunity to invest in rural satellite broadband programs which will be the part of India’s National Broadband Plan?
All roads lead back to the foundational reforms needed to allow private operators to compete, and the policy environment to allow for operators, supported by the Universal Service to roll out these services. The government is currently focused on fiber, and the role of satellite in in broadband plan is underrepresented. These efforts need to be synced to satcom reforms as well. The current broadband consultation could shift this balance.
ISRO’s public private partnership (PPP) policies is definitely an encouraging move for the Indian Entrepreneurs but the country has to achieve a certain mark at global scale to build private capabilities. With respect to this, will US investors be interested to invest in private satellite capability building – manufacturing, assembly, and integration?
The centrepiece of the GOI’s commercial space reforms is the creation of the Indian Space Promotion and Authorisation Centre (IN-SPACe), a new entity under the Department of Space, that seeks to streamline and promote the country’s utilization of private sector resources, know-how, and technology. ISRO and IN-SPACe recently held a multi-stakeholder consultations – virtually of course – with Indian industry, the applications community, and academia to share their ideas and concerns with the opening process. Many of the speakers referenced U.S. models for commercial space activity. The IN-SPACe representatives emphasized that it seeks to directly link industry to the users and customers, bypassing the current route via ISRO. IN-SPACe will also take up technical matters that inhibit commercial activity. But as I mentioned, so far the discourse has focused on the “space” side of the sector. USIBC is keen to promote the U.S.-India commercial space sector by linking U.S. experience in the private sector to the potential of the Indian ecosystem, and support Indian industry’s efforts to integrate with the U.S. space supply chain.
Will US-India relations open a new satellite business gateway with allied nations like Australia (as their space agency is young are also looking to scale up capabilities in the satellite communication arena)?
India is a highly success space faring nation, but to date has correspondingly few joint programs or trade with other space powers such as the United States, Europe, and Japan – coincidently these nations are broadly speaking India’s largest trading partners. I suspect these countries will be the primary focus as the country moves through its current reform process. The U.S. and India are particularly well suited due to the large and success Indian-American community and the size and scale of the bilateral digital ecosystem. Australia has a few best practices – namely a focus on access to capabilities rather than ownership – but would I focus on the larger relationships first.
The satellite-based Internet of Things (IoT) is still waiting to unlock its full potential in the Indian market. Therefore, what are your thoughts on the private Indian satellite companies partnering with US-based automobile companies for providing satellite-based IoT hardware and software integration?
Let’s take baby steps, first. The U.S. is a great market and testbed for advanced cars that include increased intelligence, autonomy, satellite navigation, and satellite communications and entertainment services. Yet the infrastructure in American supports these pilots and service roll outs. India is farther behind, and doesn’t yet have the policy environment or mature commercial ecosystem that can develop the equipment, services, and solutions to utilize satellite-based IoT. India needs to focus on the foundational issues which will permit the long-term capture of more advance satcom segments.
