Archive · 23 Jun 2025
BIF Rejects COAI's Satcom Market Claims in India
Imagine two groups: one that provides internet through cables (like your home internet) and another that uses satellites.
The first group said that since many homes in India don't have these cables, the satellite group has a great opportunity to make more money and lower the cost of their equipment.
But the second group disagreed.
They said the cost of their equipment depends on how many are made worldwide, not just in India.
They pointed out that the satellite group earns much less money than the cable group, and their equipment is more expensive.
The satellite group also said the government charges them more money for using the airwaves than the cable group is charged.
BIF disputes COAI's claims that low fiber penetration creates a large market for satellite operators.
BIF argues that terminal pricing is determined by global manufacturing scale, not Indian fiber penetration.
BIF highlights the vast difference in revenue and device costs between terrestrial telcos and satcom.
BIF states that satcom spectrum charges are significantly higher per user than terrestrial services.
BIF suggests terrestrial and satcom services should be complementary technologies.
- Who
- Broadband India Forum (BIF) and Cellular Operators Association of India (COAI)
- What
- BIF rebuts COAI's claims regarding satellite communications.
- When
- Published on June 23, 2025
- Where
- India
- Why
- To clarify the economics and market dynamics of satellite communication services in India.
BIF View
COAI View
Scalability and Affordability
BIF View
BIF argues that low fibre penetration has no link with satellite scalability or affordability.
COAI View
COAI claims that low fibre penetration creates an opportunity for satellite operators to scale.
Service Parity
BIF View
BIF says terrestrial and satcom services should be complementary.
COAI View
COAI implied that satcom will substitute terrestrial services.
Spectrum Pricing
BIF View
BIF points out the disparity in spectrum charges favoring terrestrial services.
COAI View
COAI said cost of device has not been a consideration in spectrum pricing decisions.
- BIF President
- TV Ramachandran
- Terrestrial Telco Revenue
- Over ₹3.36 lakh crore annually
- Satcom Market Revenue
- ₹540 crore to ₹600 crore
- Satcom Device Cost
- ₹25,000
- Terrestrial Device Cost
- ₹5,000
- Per-user Satcom Spectrum Charge
- ₹900
- Per-user Terrestrial Charge
- ₹265