Nelco focuses on remote areas, not competing with terrestrial players: MD

Direct-to-device services are also on cards, albeit at later time, since company has a tie-up with US-based Omnispace to provide 5G satellite-based direct-to-device services, signed back in 2022

Tata Group’s satellite communications provider, Nelco, is backing lowering of charges for satellite broadband providers recommended by the Telecom Regulatory Authority of India (Trai) for satellite spectrum on grounds that it would hurt operators who are not looking to compete with terrestrial players. 

“We're not playing in the same areas that they are. For instance, I can provide connectivity to a bank but I would not do it in the areas where they (terrestrial players or telcos) are present. I am competing in a place where it's remote and they're not there,” P J Nath, Nelco’s managing director and CEO, said in an interaction with Business Standard. 

“In fact, we're complementing them. There's no place which will take satellite connectivity if a terrestrial network is present. Even if there are administrative prices, there's no way that it can be lower than (terrestrial),” he added. 

Nelco, which has been a VSAT licensee for a long time, has applied for a virtual network operator licence for providing satellite broadband services under the global mobile personal communication services category, as it looks to deliver broadband, in-flight, maritime, and enterprise network solutions across low earth orbit (LEO), medium earth orbit (MEO), and geostationary (GEO) satellites. 

Nath said that by adopting the flexible, asset light strategy, it can leverage partnerships with leading satellite operators, including Starlink, Eutelsat OneWeb, Amazon’s Kuiper, and Jio Satellite, instead of putting in capex in launching its own satellites. 

Direct-to-device services are also on the cards, albeit at a later time, since the company has a tie-up with US-based Omnispace to provide 5G satellite-based direct-to-device services, signed back in 2022. “Here again, it won't compete with terrestrial since it will be put to use where there's no terrestrial network,” Nath added. Omnispace’s services are yet to be operational.

 

Separately, it has a cooperation agreement with Canadian satellite services provider Telesat, inked back in 2020.

 

“Our strategy is clear. We will be where our customers are and to address the needs of our customers, for which I will keep on doing whatever I have to do in the backend,” Nath said.

 

The top executive added that the company will look at new segments for growth, including land and maritime mobility, defence and small and medium enterprises in the coming years, even as it strengthens its existing business from banking and financial services.