Tata Group company nelco to foray into Satellite Broadband Service with Telesat
Tata Group has been making rapid inroads into new sectors in recent times. Now the Tata Group is planning to enter the satellite broadband segment through its company Nelco. Negotiations are going on with Nelco’s Canadian company Telesat regarding this. Negotiations are going on at an advanced level between the two companies regarding an agreement to launch fast satellite broadband.
PJ Nath, Managing Director of Nelco, told Economic Times that Nelco and Telesat will have a Master Service Agreement (MSA) for providing Lightspeed LEO (Low-Earth Orbit) satellite services in India. The process of finalizing this commercial agreement is currently underway. He said that Nelco has no plans to form a new joint venture with Telesat. Nelco currently provides satellite-related services to companies.
Telesat will be the fourth company to enter India Telesat will become the fourth global satellite company to enter India after the Tata Group’s tie-up with Nelco. Currently, OneWeb, SpaceX and Amazon are planning to offer broadband services via satellite in India. Telesat plans to provide broadband services on the band of 28 GHz. This bank is globally known as K0-Band.
Fast growing satellite broadband market in India: Broadband is still not accessible in large part in India. More than 70 percent of the rural area is not yet connected to cellular or fiber connectivity. Low-Earth Orbit can easily deliver broadband services to rural areas. However, this service is quite expensive right now. Experts say that the broadband satellite market in India is growing rapidly. There is an opportunity for annual revenue of $1 billion in this market.
Telesat wants to group 298 satellites by 2024 Canadian company Telesat wants to build a cluster of 298 low-Earth satellites by 2024. The company will invest about $5 billion on this. Services will also be provided in India from this satellite group. OneWeb and SpaceX are set to offer satellite broadband services in India from next year.
What is Satellite Broadband?: Satellite broadband is a form of internet connectivity. In this, users get internet connectivity directly through satellite. In areas where it is not possible to reach the internet through cellular or fiber, internet can be easily reached through satellite broadband. A few months ago, the central government had also changed the rules regarding broadband satellite.
Plans to enter semiconductor manufacturing segment as well: The Tata Group is also planning to foray into the semiconductor manufacturing segment. Tata Sons Chairman N Chandrasekaran said this at an event on Monday. Chandrasekaran had said that there is a shortage of semiconductors due to the corona epidemic and the global supply chain being affected. To take advantage of this opportunity, the Tata Group is planning to enter this segment.
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