Crunch of transponder space was not an obstacle to VSAT growth in India.

The VSAT market has done quite well considering the fact that there was a crunch of transponder space in the first half of the year. This eased a bit with the allotment of one eighth transponder space each to Telstra V-Comm, HECL, Comsat Max, HCL Comnet, and Bharti BT. In terms of numbers, the country witnessed an installed capacity of 2,490 VSATs in 1998-99 that would have gone further to 3,000 if there was a free availability of transponder space.

The total number of installed VSATs in the country increased to 8,490, which is growing at the rate of 41.5 percent. In 1998-99, all the VSAT service providers have collectively done a business of Rs 250.83 crore. Some of the projects like the Government of Maharashtra Earthquake and Rehabitation Project, which was undertaken by the Mumbai-based Global Group, and not by one of the VSAT service providers in the country. In sheer numbers, the TDM/TDMA market is still way ahead of the DAMA market. TDM/TDMA VSATS account for 7,990 whereas DAMA accounts for 500. The future trend is more towards hybrid network where one can have more flexibility.

Almost all the international players like Scientific Atlanta, Hughes, Gilat, their STM Wireless, Viasat, and NEC have presence in the country. With Gilat acquiring GE Spacenet and Skydata, and GE Spacenet acquiring AT&T Tridom, Gilat has suddenly got a multiple of technologies and multiple of VSAT service providers who support its system in the country. In December 1998, Gilat opened its India office so that the company could give proper attention to its operations in India. In spite of the number advantage, Gilat was placed third with an installation of 520 VSATs and with a marketshare of 20.88 percent. Scientific Atlanta was at the second position with an installation of 737 VSATs and a marketshare of 29.60 percent. Hughes occupied the number one position with an installed base of 803 VSATs in 1998-99 fiscal and a marketshare of 32.24 percent. STM Wireless occupied the fourth position while NEC held the fifth position.