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Summary
The hike, effective 1 April, signals pricing reset as DTH demand weakens and new-use sectors compete for capacity
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.
NSIL, as well as Hughes Communications India and Bharti Airtel—two key stakeholders of the latter—did 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.
About the Authors
Jatin Grover
Jatin is based in New Delhi and writes on telecom and technology with a keen interest in policy and regulation. With over five years of reporting experience across Informist Media, Financial Express and now Mint, he has extensively covered the telecom, information technology, electronics and semiconductor sectors.<br><br>A commerce graduate, Jatin's work focuses on tracking industry developments, regulatory changes and policy decisions that shape India’s evolving digital ecosystem. Over the years, he has reported on key trends and shifts across these sectors, bringing clarity to complex policy and business issues.<br><br>Known for his strong news sense, Jatin focuses on breaking stories and delivering in-depth reporting that offers readers an understanding of complex topics, policy decisions and corporate developments. His work often examines the intersection of policy and business, highlighting how regulatory decisions impact industry strategy, pricing, and consumer outcomes.<br><br>He brings a strong domain understanding for Mint and his work is widely picked up by other media firms. With a focus on accuracy and depth, he aims to break down developments into clear, accessible insights for readers, while continuing to track emerging trends shaping the future of India’s telecom and technology sectors.
Shouvik Das
Shouvik has been tracking the rise and shifts of India’s technology ecosystem for over a decade, across print, broadcast and web-first platforms. He's been a tinkerer of machines and PCs since childhood, a habit he was thrilled to convert into his profession. This has led him to fascinating experiences of technologies around the world, which is what keeps him hooked to his job.<br><br>Shouvik likes to believe that he is one of the few technology journalists in India who can also code. He has also been writing about the rise of AI well before it became a household name, and has met some of the most fascinating people over the years through his work.<br><br>Shouvik writes about AI, Big Tech, data centres, electronics, semiconductors, cybersecurity, gaming, cryptocurrencies, and consumer technologies. He is most fond of the stories he has written during his time here at Mint, for which he also writes 'Transformer', a weekly technology newsletter, and hosts 'Techcetra', a weekly technology podcast.<br><br>Outside of work, Shouvik spends most of his time with Pixel, whom he believes is the world's best dog. He is also an avid reader, a toy collector, a gamer and a frequent traveller.
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