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DTH and teleport companies anticipate reduced satellite costs from new policy

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In Short:

Direct-to-home (DTH) and teleport operators in India are expecting satellite capacity costs to decrease after the government’s new policy. Foreign satellite operators must establish local units to provide satellite services to Indian companies by April 2025. This will allow broadcasters to sign long-term contracts and trade in Indian rupees. Companies like SES, AsiaSat, and Intelsat will need to set up local units to continue providing services in India.


Direct-to-home (DTH) and Teleport Operators Expect Satellite Capacity Costs to Fall

Industry experts are anticipating a decrease in satellite capacity costs for Direct-to-home (DTH) and teleport operators following the government’s recent policy change. As of April 2025, foreign satellite operators must establish local units in India to provide satellite capacity to Indian companies.

Key Changes and Implications

This shift will enable broadcasting service providers to enter into long-term agreements with foreign satellite operators. It will also allow for contracts to be negotiated and finalized in Indian rupees (INR) rather than relying on foreign currencies like the US dollar.

Notable foreign satellite operators serving TV broadcasters and DTH operators in India include SES, AsiaSat, Intelsat, and Measat. SES has already established a subsidiary in India under the name SES Satellites India.

The Ministry of Information and Broadcasting (MIB) has specified that only satellites authorized by the Indian National Space Promotion and Authorization Centre (IN-SPACe) will be permitted to offer space-based communication and broadcast services in India after April 2025.

Industry Responses

“The ability to secure long-term contracts for the duration of a satellite’s operational life, typically 5-10 years, presents a significant advantage over the previous leasing model,” stated Dish TV India CEO, Manoj Dobhal. He emphasized that contracts in INR could mitigate cost escalations and promote competitiveness in pricing compared to the Indian National Satellite System capacity.

Sanjay Duda, CEO of Planetcast Media Services, India’s largest teleport operator, highlighted the convenience of purchasing capacity directly in India from foreign satellite operators’ Indian entities. This eliminates the need for foreign exchange transactions and associated regulatory approvals.

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