In Short:
Intelsat is setting up a wholly-owned subsidiary in India to transfer assets and comply with the country’s space policy. The subsidiary will own all business, infrastructure, employees, and assets. The company has invested $5 million in India and plans to become ‘Indianised’ in the next 12 months. The space sector in India is opening up to non-governmental entities, with a predicted growth in the space economy to $13 billion by 2025.
Intelsat to Set Up Wholly-Owned Subsidiary in India
Intelsat, an integrated satellite and terrestrial network operator, is establishing a 100% wholly-owned subsidiary in India. The company will transfer its assets serving Indian customers to this new entity to comply with the country’s space policy.
Transition Process
Gaurav Kharod, Head of Intelsat in Asia Pacific, mentioned in an exclusive interview with ETSatcom that all five satellites currently serving Indian customers, along with the business, customers, and assets such as spectrum, will be transferred to the new Indian entity.
Intelsat will apply for a foreign direct investment (FDI) plan and await approval from the Indian National Space Promotion and Authorisation Center (IN-SPACe) to set up the subsidiary.
Compliance with Space Policy
Intelsat has not disclosed further details regarding the subsidiary. As per the Indian Space Policy 2023, non-governmental entities are now permitted to engage in comprehensive activities within the space sector.
The implementation guidelines released by IN-SPACe state that authorization is required for non-Indian satellites to offer communication services in India, using either Indian or non-Indian orbital resources.
Expansion Plans
Intelsat, headquartered in Virginia, USA, has a presence in several countries, including India. The company has 125 employees in India, primarily based in Delhi and Chennai.
Over the next 12 months, Intelsat aims to align with the requirements of the space policy and ensure compliance with all infrastructure, personnel, and assets.
The company has invested approximately $5 million in India for teleport infrastructure and has collaborated with Tata’s Nelco and Cloudcast Digital Limited for aviation and maritime communications.
Opportunities in the Market
The Telecommunications Act 2023 has addressed concerns related to the auction of satellite spectrum. Intelsat, along with other companies like Eutelsat OneWeb and Jio, is eyeing the growing satellite communication market in India.
According to a report by the Indian Space Association (ISpA) and EY, India’s space economy is projected to reach $13 billion by 2025, showing a CAGR of 6% from $9.6 billion in 2020.
