NewSpace India Ltd (NSIL), the commercial arm of Indian Space Research Organisation (Isro), has raised satellite bandwidth prices by 20%, effective 1 April, marking its first revision in a decade and signalling a reset in how scarce orbital capacity is priced amid shifting demand.
The increase, communicated to customers in a letter dated 18 September, reviewed by Mint, will affect broadcasters, direct-to-home (DTH) platforms and companies leasing capacity for TV distribution, connectivity for ATMs and remote areas, maritime and defence projects, and enterprise communications.
The move comes as demand dynamics shift, with traditional DTH usage weakening even as aviation, maritime and defence applications seek capacity, prompting a long-delayed pricing correction.
“NSIL management has decided to revise the pricing of Ku-band capacity in three satellites—Gsat-31, Gsat-10 and Gsat-16. This is the first price revision of government satellites after 2016. The upward revision of charges/pricing by 20% for leasing Ku-band transponder capacity on Gsat-10/Gsat-16 and Gsat-31 satellites will be effective from April 1, 2026,” the intimation by NSIL read.
GSAT, or geostationary satellites operated by Isro and commercially managed by NSIL, are core broadcasting infrastructure for Indian companies.
Industry stakeholders said the hike follows internal and industry consultations and reflects changes in both demand and costs over the past decade.
"Demand from DTH customers has been falling, but they continue to block a significant portion of satellite bandwidth from key resources that could otherwise be leased at competitive pricing for critical communications in flights and at sea, as well as commercial defence customers,” said a senior official directly aware of the satellite bandwidth pricing revision at NSIL, adding that the price hike was fair as there were no pricing negotiations over a full decade—where multiple costs and prices have escalated.
A 36 megahertz (MHz) Ku-band transponder capacity from NSIL used to cost ₹6.6 crore per annum. So, a 20% increase on that would mean the same would now cost ₹7.92 crore per annum, said a top executive in the Vsat (very small aperture terminal) industry, adding that the impact of price hikes will depend on how many transponders each customer of NSIL has.
A transponder is a satellite-based device that receives, amplifies, and retransmits signals, enabling services such as TV broadcasting and data communication.
According to NSIL’s website, the company offers over 10,000 MHz of satellite bandwidth capacity across its fleet. It is also the dominant supplier of domestically available satellite capacity, with foreign operators requiring government approval to offer bandwidth in India.
The company generated ₹2,761 crore in revenue from operations, of which 51%, or ₹1,422 crore, came from satellite bandwidth sales, according to NSIL’s FY25 annual report.
Under pressure
The increase comes at a time when the DTH industry is witnessing a structural decline in subscribers and revenues, amid competition from OTT platforms, rising broadband penetration, smart TVs and free television services such as DD Free Dish. The Vsat industry, too, faces pressure from rising costs and competition from terrestrial 4G and 5G networks.
Even as some operators explore shifting to foreign satellite providers, the official cited above said NSIL’s pricing “is already more competitive than rival operators that have licence to offer bandwidth in India through In-Space, the nodal authorization body.”
An executive at Tata Play acknowledged the NSIL price hike, the impact of which could see a momentary margin squeeze, but said the effect on the company is likely to be limited.
"Tata Play partnered with Nsil for Gsat-24 in 2022, through which the latter's entire capacity is leased to the company. This gives it a unique pricing model and a long-term contract, because of which the immediate impact on Tata Play as a result of this price hike will be nullified," the executive said.
NewSpace India took over commercial operations of Isro’s satellite fleet in April 2021 following the opening up of India’s space sector in 2020, and provides capacity across a fleet of 12 satellites.
“The reforms mandated Nsil to undertake end-to-end commercial space activities and function as a full-fledged satellite operator. In due course, Nsil emerged as the foremost satellite operator in India, provisioning satellite capacity… across its fleet of 12 satellites. The satellite capacity is provisioned to various users across India for various applications like TV, DTH (direct-to-home), DSNG (digital satellite news gathering), Vsat (very small aperture terminal) and IFMС (in-flight and maritime connectivity),” said Nilanjan Routh, chief manager of satellite services at NSIL in the 18 September letter to users.
In response to Mint’s queries, NSIL said it follows a dynamic pricing model for its satellite fleet and that the latest revision was necessitated by rising operational costs and broader market factors. The company said it will consider both upward and downward revisions in satellite capacity pricing depending on such factors.
NSIL added that it does not expect user churning due to such revisions, describing them as common business practice across operators and markets. It said customer decisions on selecting satellites and operators depend on multiple technical and commercial considerations, not price alone, and maintained that it retains a competitive edge among comparable satellite operators in India.
Hughes Communications India and Bharti Airteldid not respond to Mint's queries sent earlier on Monday. Tata Group-owned Nelco refused to comment. A query emailed to a representative of Tata Play did not immediately receive responses.
For now, analysts say the move reflects a long-overdue adjustment.
"The 20% satellite bandwidth price increase from India's government-operated satellites appears to be the first one after a full decade. To this end, the price increase is not lopsided or abrupt, and could contribute toward market correction forces in the overall industry," said Surbhi Patni Dalmia, director and country head - India at space consulting firm, Novaspace.