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What’s the Buzz About SATCOM?
How many of you have seen the word “SATCOM” coming up in the news every now and then and wondered what it is?
I am one of you! SATCOM, short for “Satellite Communication,” has been trending in the news too often to ignore. This tech, has different roles for different bandwidths like:
- S-Band: Primarily used for satellite radios
- C-Band: Commonly used for television broadcasts
- X-Band: Vital for military and government applications
- V-Band: Essential for P2P communication requiring high data rates
As diversified as its applications are, many prominent business leaders are standing in line to get a chunk of it. SATCOM can bring transformative changes to the telecom and internet industries, opening doors for innovation and competition.
Why SATCOM?
So, we already have 5G and are advancing rapidly in technology. So why SATCOM now? What’s so appealing about it that everyone wants a piece? Let’s take a quick look.
- Defense and Military Applications: Military and defense personnel often travel to remote areas where setting up telecom towers isn’t feasible. SATCOM provides coverage in these regions, enabling secure, reliable communication.
- IoT Industry: Post-COVID, there’s been a rising demand for IoT products. Imagine a family person who wants to travel while also monitoring their home for intruders. While traditional internet helps with this, remote areas with limited internet access need SATCOM to bridge the gap.
- Business Expansion: Businesses usually set up in urban areas with better infrastructure and connectivity. Financial institutions, for instance, need secure networks. SATCOM helps extend connectivity to rural areas with high data transfer speeds, allowing businesses to grow beyond cities and opening up investment opportunities in expanding digital services and technology sectors.
- Direct-to-Cell (D2C) SATCOM Technology: This technology, which allows regular smartphones to connect directly to satellites, is a game-changer. It can disrupt traditional mobile services by providing universal connectivity, especially in regions with limited terrestrial networks, which has piqued the interest of telecom giants.
- Economic Prosperity: SATCOM can drive economic growth by bridging connectivity gaps in rural India, promoting digital literacy, and opening up new markets for digital services. It also has the potential to enhance education, healthcare, and e-governance, contributing to inclusive development.
Cost Analysis: SATCOM vs. Fiber Optics – The Urban vs. Rural Perspective
If you’ve read this far, you might be wondering like me, SATCOM seems beneficial for rural areas, but how does it play a role in urban settings?
- Urban areas already have robust fiber-optic infrastructure, but even the best networks can experience occasional downtime. Imagine trying to conduct a security check when the system is down for just ten minutes—these brief downtimes can be very costly for enterprises.
- Many urban businesses are deploying IoT devices, mobile applications, and sensors that require reliable, continuous connectivity, even when moving or across out of network areas. SATCOM becomes integral part of IoT industry.
- We are all aware, how we are shifting from traditional databases to cloud computing and cloud storage. Satcom can come across as a high-reliability layer that can reduce latency.
- As urban areas evolve into “smart cities,” SATCOM could support infrastructure like public Wi-Fi, IoT-based traffic monitoring, and emergency systems, positioning companies as leaders in adopting smart technology. The growth of SATCOM infrastructure may also make IoT, cloud computing, and urban technology companies strong candidates for investment as they support smart city transformations.
We understand it is a good business and B2B has lot to gain.
What does it bring for B2C, for consumers like us? Do we need to get excited about it? For this, lets take an idea of how much satellite broadband will cost us, compared to Fiber optics we are using currently.
| Cost Factor | Fibre Optics | SATCOM |
| Requirement | Required installation of lines for connectivity. | Requires Satellite Dish/Modem. |
| Deployment | Can take months to install physical lines with lots of permissions and checks from government | You do not need anything other than your modem. |
| Scalability | Expensive and long. Need Infrastructure Investment | Can be easily scaled. |
| Maintenance | Once installed, less maintenance required by the end-users. | Central maintenance will be the provider’s responsibility, but satellite replacement costs will be recovered from customers in some form |
| Cost per Business | Lower in urban areas ($30-$80/month); higher in remote setups if feasible. | Moderate to High: $70 – $150/month due to satellite bandwidth costs. |
| Data Rate | Very Low: Data is relatively inexpensive in urban areas with FTTH plans. | Moderate to High: Data caps and speed limits can lead to higher costs for heavy users. |
The cost of laying Fibre optics can range from INR 40,000 to INR 1,00,000 per Km in India, depending on demographics, quality etc.
While the installation of Fibre optics may seem costly at start, the maintenance, data rates, cost per business is low. SATCOM is a technology in development. SATCOM might soon be competitive for urban consumers, with future technology lowering costs But for now, it doesn’t seem to have any spaced in B2C market.
SATCOM is Not Alone: Semiconductors and Avionics in India’s Tech Future
The face of SATCOM is just part of the story. The semiconductor industry forms SATCOM’s backbone, aligning with the government’s strategy to strengthen India’s position in technology. The Indian government offers a 50% financial incentive for semiconductor manufacturing, recently resulting in over Rs 1.5 trillion (approx. $18 billion) of investment in the sector.
That’s not all! India is also investing in the avionics industry. Communication in avionics goes hand in hand with SATCOM, so it’s natural that as one grows, the other will prosper too. If you’ve been following the news, you may have noticed developments in this area as well.
If you’ve been following the news, you may have noticed notable developments in the Indian avionics industry. For instance, Tata-Airbus’s facility in Gujarat will produce C-295 aircraft for the Indian Air Force, and Boeing has invested Rs 1,600 crore (around $200 million) in its largest engineering and technology center outside the US.
The Modi government is aiming to grow India’s electronics sector to $500 billion by 2030, which would directly benefit the semiconductor industry. He aims to draw FDI in India. We can see lot of surge in employment and investment oppotunities in Avionics/ Space/ Semiconductor industry in India. But can it become global power-house? What do you think?
The forward thinking behind the moves is very commendable.
The Ambani vs. Musk Debate: SATCOM Spectrum Allocation
There has been talk about different visions from leaders of two countries concerning SATCOM spectrum allocation: auction versus administrative allocation.
Indian telecom companies like Reliance Jio and Bharti Airtel advocate for auctions, arguing it would create a fair and competitive environment for all telecom companies. This method benefits the government by generating substantial revenue, which can support public projects and infrastructure.
On the other hand, SATCOM-focused companies like SpaceX’s Starlink and Amazon’s Project Kuiper prefer administrative allocation to keep costs low for rapid deployment. Musk emphasizes that the International Telecommunication Union (ITU) typically allocates satellite spectrum administratively. Auctions could drive up spectrum costs, making services more expensive for consumers. By avoiding auctions, companies like Starlink aim to keep operational costs lower, potentially offering more affordable services.
India’s decision to adopt an administrative approach, justified by the fact that, unlike terrestrial networks, satellite space is an international matter.While this may not be a good news for Indian Business giants, the operational cost will be low for end-users, which aligns with anticipation of Elon Musk.
Elon Musk has recently tweeted ,
“I will call and ask if it would not be too much trouble to allow Starlink to compete to provide Internet services to the people of India,”
This is just a peek, many big names are trying to get into Indian market, Apple’s partner, GlobalStar , is also competing to get inside India’s Satcom business.
The future looks promising and exciting. I would love to see how it plays out in coming year.
What Challenges Does SATCOM Face?
While we are so much excited about getting our hands on this new tech, it brings set of challenges we need to be concern about.
- Jurisdiction Issues: Since satellites operate beyond any single country’s jurisdiction, questions arise about compliance and regulatory rules.
- Direct-to-Cell (D2C) Security Concerns: With D2C technology, controlling unwanted attention becomes harder, especially without an intermediary. This raises serious security concerns for defense and critical infrastructure.
- Space Junk and Satellite Lifespan: Satellites have a lifespan ranging from 6–20 years. Guidelines are essential for managing space debris and assigning responsibility.
- B2C Operational Costs: For now, SATCOM costs are high for direct consumer use. However, as industries innovate, costs may eventually come down, making SATCOM more viable for the B2C market.