The competition cools down? A regulatory agency in India is proposing eliminating commercial satellite competition and consolidating all satellite television broadcasts onto a handful of government owned and launched satellites.
Indian Prime Minister Narendra Modi’s “Make in India” campaign seeks to promote India’s domestic industrial base. The Telecom Regulatory Authority of India (TRAI) on May 23 published what it calls a “pre-consultation paper” that points to the savings satellite-television broadcasters could realize if they stopped beaming the same programs on different satellites, and instead banded together on one or two spacecraft.
As of March 2015, the latest period for which TRAI has produced figures, there were 76 million DTH subscribers in India, of which 41.1 million were considered active. These subscribers received programming from six pay TV DTH providers and one free-to-air satellite broadcast service. TRAI said multiple DTH providers are broadcasting the same channels even as they compete with each other for subscribers. “There is scope for better utilization of available infrastructure,” TRAI said. “There is a need to examine technical and commercial issues in sharing of infrastructure such as satellite transponders, Earth station facilities….”
There is also this important component to the story:
India has been one of the biggest satellite-DTH growth markets in recent years, but one in which barriers to entry by foreigners remain high. Under Indian law, television broadcasters seeking operating licenses are given preferential treatment if they use India’s own Insat telecommunications satellites, owned and operated by the Indian Space Research Organization (ISRO). Non-Indian satellites are permitted if ISRO’s Insat system does not have sufficient capacity to meet programmers’ demand. This has been the case for years as ISRO has been unable to keep up with the market for satellite television.
In other words, the commercial satellite business in India is doing great, so let’s muck it up by having one government agency create a monopoly for another government agency.
The United States tried this in the 1960s when it banned private companies from launching commercial communications satellites and instead required all such satellites to be built by the government-managed Comsat corporation. The result in the U.S. was a squelched satellite and launch industry that did not recover for more than a decade, and only did so when the Nixon administration forced a change in the rules.
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