The much-awaited VSAT policy based on revenue sharing is out, but the operators have not made their transition to the new policy as there are some glitches in the policy which the service providers are objecting to. The policy will help in reducing the Total Cost of Ownership (TCO) of VSAT and make it more affordable. Along with the lifting-up of the 64 Kbps ban for 512 Kbps, it will help the industry to grow at a faster rate in this fiscal. And it is expected that the industry will grow at around 50 percent if the policy gets a go-ahead by the first quarter of 2001. Allowing Ku-band along with extended C-band will provide more opportunities for the industry. HECL has already set Ku-band hub and is testing it. HCL Comnet has also gone for a Ku-band hub to be operational in June. The company has already begun a price war in the country by offering VSAT at Rs 99,000 and offering bandwidth at Rs 99 per day.

With the cost of VSATs coming down further due to Ku-band, VSAT services will be more affordable to small corporates and they can think of buying a couple of VSATs to enhance their connectivity. This year, one can see a growth of around 30-35 percent in the VSAT market.

This year, the retail segment will dominate the scene. The foundation of distance education will be strengthened in this fiscal, as one will see many institutes opting for it. Even hospitals and medical institutes will go for tele-medicine applications, once the new policy is operational. VSAT service providers like HECL, HCL Comnet and Comsat Max have started providing value-added services, and would be more aggressive this year with their VPN and IDC products. They will also provide Internet access via VSATs. Moreover, e-governance will also drive VSAT demand in the country. It appears one will see a good growth, this year, if the policy gets a go-ahead.