NEW DELHI: In a move set to benefit telecom operators and consumers, the government will be directing VSAT (very small aperture terminal) service providers such as Tata Group’s Nelco, Hughes Communications and Inmarsat to vacate the 6 GHz spectrum band to make way for high-speed 5G and future 6G networks.
While this transition will lead to better mobile connectivity, it will come at a steep cost for VSAT players, who will be forced to migrate to alternative bands, incurring significant expenses.
Currently, VSAT operators use 300 MHz in the 6725-7025 MHz band to provide satellite-based communication services to critical sectors such as banking, oil and gas, power companies, and government agencies, ensuring reliable connectivity in remote locations. These services, though not known for high-speed data transmission, are essential for linking ATMs, enterprise networks and point-of-sale (POS) systems.
The government has finalised the upper portion of the 6 GHz band (6425-7025 MHz) for telecom operators, officials said. Once cleared, the spectrum will be auctioned to enhance 5G services and facilitate the rollout of 6G. VSAT players will be required to migrate to either the 5GHz or Ku-band (12 GHz) by December 2030.
The migration will not only impose a heavy financial burden on VSAT companies but could also disrupt existing services. Industry executives said that transitioning to alternative bands will require extensive investments in new equipment, infrastructure upgrades and ground terminal reconfiguration.
“Transitioning to alternative bands will require significant investments, leading to high capital expenditures,” said Anil Prakash, director general of the SatCom Industry Association (SIA-India), which represents major satellite and VSAT operators. “While the exact cost is difficult to estimate, analysts predict expenses ranging from hundreds of millions to billions of dollars, depending on the size and scale of operations.”
According to Grand View Research, India’s VSAT market is projected to grow from $120.8 million in 2023 to $281 million by 2030 at a compound annual growth rate (CAGR) of 12.8%, driven by increasing demand for high-speed connectivity in remote regions.
Prakash said that rather than displacing existing VSAT services, the government should consider assigning alternative bands to emerging technologies like 5G and 6G. “Auctioning the 6GHz band for high-power cellular networks could disrupt the balance between satellite services and Wi-Fi, negatively impacting both industries,” he added.
The Indian Space Research Organisation (Isro) also currently operates satellites in the 6GHz band. While telecom operators will be required to implement protective measures to minimise interference, Isro will be asked to refrain from launching new satellites in the 6425-7025 MHz range. These provisions are expected to be included in the upcoming National Frequency Allocation Plan (NFAP) 2025.
The 6GHz spectrum has been a contentious issue, with telecom operators, satellite service providers and tech companies vying for its allocation. Technology firms, represented by the Broadband India Forum, have pushed for the 6GHz band to be de-licensed for Wi-Fi, arguing that it is critical for affordable and high-quality broadband expansion.
The government is yet to make a final decision on the lower portion of the 6GHz band (5925-6425 MHz), which remains under discussion.
Source: The Financial Express
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