Nelco crosses first step to satcom reselling licence

Tata Group-owned Nelco Ltd has received the government's preliminary approval to resell satellite internet services to consumers by partnering with companies such as Elon Musk’s Starlink, OneWeb, Amazon's Kuiper and Jio Satellite, according to three people in the know.

- Jatin Grover

The company applied for a virtual network operator licence to provide global mobile personal communication by satellite service and has “received the letter of intent”, one of the persons cited above said. Once the licence is granted, it will give Nelco the option to resell satellite internet services not just in retail markets, but also for newer use cases like portable or on-the-move connectivity using third-party satellite networks, the person said.

The initial nod opens the door for Nelco to enter the satellite broadband services market without owning satellites and its infrastructure, saving on capital expenditure and boosting revenue possibilities. It positions the company to capitalize on a burgeoning sector, as KPMG estimates India's satellite communications market will reach $20 billion by 2028 from about $2.3 billion a year now.

On 11 August, Nelco signed an agreement with Bharti Enterprises-backed Eutelsat OneWeb to deliver low-earth orbit (LEO) satellite connectivity on land, at sea, and in the air across India, once the services start commercially after the government's spectrum allotment. The government is finalizing the contours of allocating satellite spectrum to the operators and the related fee. So far, OneWeb, Starlink and Jio Satellite have secured the licences.

After getting the letter of intent, Nelco can begin fulfilling the necessary conditions before receiving the final permit.