How will VSATs compare with the other modes of communication available?
Well, VSATs are ideally suited for new kinds of applications, new kinds of business processes. Take the Delhi, Bombay and other important stock exchanges. The joy of online trading would not be available without VSAT networks. Online trading has created a whole lot of wealth. Just imagine the earlier scenario where there was little transparency and trust.

Even banks would hold on to enormous floats while corporates paid a price. Now banks can efficiently transfer funds at great speed.

Now coming to the comparison, there are three points that I would like to highlight. One, VSAT networks are reliable. Terrestrial networks have point to point connectivity and therefore tend to be unreliable. The VSAT networks take the connection to the last mile and are hence more reliable. Then there is the 'ubiquity' factor. Most of the companies in India have branches and plants in rural areas where there is little infrastructure. The VSAT networks can surpass such infrastructural bottlenecks at great speed. Thirdly and most importantly, the VSAT networks are extremely manageable. In case of problems the user does not have to run from pillar to post trying to get the system set right. In case of VSAT networks, there is this single phone number that needs to be dialed.

It becomes extremely convenient for corporates to use this facility. This in fact could be an ideal medium for ushering in rural telephony. The dream of having a phone in every village can be realised through participation by the VSAT providers.

Who are the users of VSAT networks?
In India, all top 300 corporates have VSAT networks. They have been used for various reasons. Some corporates link their branches or projects in rural areas. Then there are companies using it to get access to timely information by implementing ERP solutions.

Now this is something interesting. The US Department of Post is installing a huge VSAT network. I think that there would be around 30,000 VSATs all over the US. In fact, this project is already under implementation.

How price competitive would the VSAT services in India be?
Extremely competitive, I would say. There are essentially three types of VSAT networks. There is the TDM/DAMA, the Meshed, and the Star type of VSAT networks.

The Meshed networks can facilitate data, voice, and multimedia transfers, reliably at high speeds. Essentially broadband services. The Star network is ideally suited for transaction based applications. Generally, a single VSAT connection would cost around Rs.2,70,000 to Rs.3,50,000. The services would cost around a lakh a year. So these are extremely competitive rates.

How will the prices of VSAT services in India compare with those around the world?
Very well. India is amongst the low cost VSAT service providers in the world.

How is that so?
Thanks to competition. Many a time players have to take a beating on the price. Importantly, these services can become still cheaper if the duty on import of equipment is reduced. They are extremely prohibitive.

Then again there are licence fees. More than half of the service charge goes into licence fees. They are pegged at around Rs 55, 100 per VSAT connection. We were in talks with the TRAI to reduce the fees to the range of Rs 20,000 to Rs 25,000 per year. We were in advanced stages of discussions and then the TRAI is now being reconstituted. We in the industry hope that the spirit of the New Telecom Policy is maintained when the new structure comes in place.

How do you see the potential for VSATs in India?
There is tremendous promise that the VSAT industry has to offer. The government should allow the private VSAT service providers to participate in connecting all the villages in India. VSAT is the most appropriate technology for this purpose. Connectivity can be achieved at great speed and low costs.

We are also excited for another reason. We now have transponder space on the new satellite that is ready to be launched in March this year. We just hope that the existing players are offered the extended C-band (X-Cband) facility on the transponders. The new entrants can chose the band they want.

Essentially, the existing players had made great investments in the X-Cband technology that is so specific to India and have based our business plan on that. If this is changed, it would adversely effect the health of the VSAT providers.