In INSAT 3B, there is hope for our revival

Sanjiv

Mittal, an IT industry veteran with over two decades experience in the industry

has taken over as the chief executive officer of Bharti BT. Bharti BT, a joint

venture between Bharti and British Telecommunication Plc., offers VSAT based

satellite communication services. Mittal has replaced K. Ganesh, who has moved

out to head a start-up company. In his first interview after taking over the new

job, Mr Mittal, not related to the Mittals of Bharti Group, speaks about his

understanding of the VSAT industry.

How do you feel, taking over as chief of Bharti BT (BBT)?



I feel great. And I’ll tell you why I feel great. Firstly, I think the
shareholders, the Bharti Group and British Telecom, are looking upon very major

expansion plans. Not just in this venture, but the two three ventures that we

have got. The Bharti Group is a very ambitious and aggressive group and has

plans to become a major player in the telecom industry. All the people I have

met are good, nice people to work with and are willing to really grow the

organization. But I think the support of the shareholders is very good. That’s

one reason.

Secondly, I would say is the telecom industry is going through major changes.

Four to five years ago it was a state government controlled situation with a lot

going on in DoT, but in the recent past we have seen tremendous changes and the

changes that are going to happen in the next five years is going to be

significant. Now there is talks of DoT being corporatised and so many other

things. I think that telecom in India is still way behind in the telecom

services and infrastructure compared to most other developed countries. The

growth of this industry will be good if there are not too many restrictions.

Telecom is a good business to be in at this instance.

Thirdly, India is proving in more and more areas that today is the era of

knowledge people. And if you have got good knowledge, technology and people you

can leverage those strengths, not just for India but for the global market.

Whether it is in IT, whether it is in telecommunication or whether it is in

media or entertainment - all these areas are not asset-based industries, these

are all knowledge-based industries. So you need to have the right people and the

skills, which India has in abundance, which we can leverage those skills for the

global market. In the software industry we actually have done it. But

increasingly even the entertainment, media and communication industry is also

looking at tremendous growth not just for the domestic market but for the global

market. So I think we are at the right pace, we have lot of skills in house and

as we grow forward we are trying to see how we can find ourselves under the sun.

What is BBTs plans for the telecom industry?



As far as our plans are concerned, we have been concentrating on providing VSAT
services primarily. But increasingly, we want to position ourselves as a total

telecom solutions provider to corporate customers. Although VSATs constitute a

significant portion of our business, we do not want to get restricted by just

providing VSATs. For example, if we go to a corporate customer and ask him what

his total telecom needs are, how much data and voice has to be transferred from

various locations, what reliability, what bandwidth, what up-time and what

throughput is required, then we will be able to provide the best solution and

technology available in the market. That is how we want to position ourselves in

the broader sense.

As a total telecom solution provider, will you use the services of your

sister companies?



Basically, we are finding that most of our customers do not want to talk to five
different people for its telecom requirements. They want to give the whole

telecom contract to a single technology provider, who will have to provide what

they require - whether he himself is able to provide it or he gets others to do.

All they require is a one-point contact to which they will give their

requirement and the budget.

You are right that our sister companies like Mantraonline and Airtel do

provide Internet and cellular services. We do not intend duplicating these

activities. However, our focus would be on corporate accounts, and we would

provide a total telecom solution to the customer. As part of a total telecom

solution, we may work with our sister companies, or other partners, to be able

to provide the most cost-effective solution to our customers. In fact, we have a

link to the mantraonline node in Bangalore and provide Internet access for some

of our customers like ITC and Zuari Industries Limited.

In areas where we are not present, we will work with our sister companies or

other partners to provide the solution to our customers. For example, we do not

have a managed VPN network of our own, and so we would work with various

partners to provide these services.

Do you plan to provide Internet service via satellite (in the retail area)?



No, as far as this organization is concerned we are not looking at getting into
retail. Because, we think our expertise is best suited for the corporate market.

Of course, there are other sister companies of ours that are in the retail

segment or are into some of these services. I think those would be aiming at

that and our major progress would be in the corporate segment.

What changes are you planning to bring about in this organization?



It is very early for me to talk of changes in this organization, but I would say
that one very major thing that we are looking at is to grow significantly in the

next couple of years, how to grow very significantly and whatever is required to

grow.

What is the kind of revenue you are expecting this year?



I have been in this job for less than a week. But we are looking at a
significant growth, whether it is going to be a 50 percent or a 100 per cent

growth, I don’t know. I have to chalk out a plan as to what we want to be, but

I would say that it depends on a lot of matters, the environment and our plans.

How does BBT manage its bandwidth problems? Have you not used up your

originally allotted bandwidth?



No, we all have reached a stage of whatever is our capacity - we are at 100 per
cent of our capacity. You know this industry has not been able to grow,

everybody has been conserving and trying to say that this is what we can do.

How helpful will the launch of INSAT 3B be for the VSAT segment?



It will be. It will definitely be very significant having INSAT 3B launched. I
think a lot of growth of the VSAT industry has not taken place because of

shortage of satellite transponders, now with more transponders available, I

think that this will help the entire industry and therefore the infrastructure.

How helpful is the KU Band for the Indian VSAT industry?



KU band is just coming on the new satellite. Firstly, I would say that it is a
slightly different technology. KU Band is used all over the world and therefore

one thing which will happen is that we will be able to use products that are

used in the rest of the world rather than products that are specifically

manufactured for the Indian market. This will make all our products in line with

what is used all over the world and so it will be more stable and reliable.

Secondly, there will be no capacity constraints on a KU Band. So far the

question was if you want so many VSATs, where do you get the bandwidth, now

bandwidth on a KU Band will be significantly available.

What is the potential of the VSAT market in the country?



I think it has a lot of potential. Of course, till a couple of years ago there
was transponder space restriction. But, I see it grow very significantly.

Firstly, because of the new satellite and secondly, because of the changes

taking place in the telecom infrastructure in India at present. Earlier, a lot

of things were tabooed or restricted in the VSAT or telecommunication industry

like, you cant have your own gateways, or you have to go through VSNL, but now

the government is saying that we can set our own gateways. So I think the kind

of industry it will become, will depend more on what is in customers interest

rather than a policy being made by the government. Let the market decide rather

than the government. So I feel, that the VSAT industry will become like that of

any other developed country and as there is limited scope customers will start

seeing where and how one can start using VSATs much more effectively.

On the potential or market of VSATs, it is very difficult for me to give

figures as I am new and more than that, today it is a fairly regulated industry

and the figures depend on the policy that will come, the number of private hubs,

the transponder space that would be available to us, etc. We do not know, there

is still a lot of grey areas.

What help are you looking for from the government?



One, is that the telecom is moving to a revenue sharing basis rather than a
fixed licensed plan, that is something which we have been asking for and this

may happen. If this happens it will give us a good boost. The other thing that

we really want from the govt. is that when there is a capacity constraint we

should be able to use foreign satellites, i.e. making it more deregularised.

With the closed user group I may have, I can only communicate within my

office and not use that to communicate with others. Internationally that is not

the issue, you have your own network and you can use it in whatever way. Whereas

in India for various reasons it has been defined that this can be only for a

closed user group. Make this deregulated and let the market determine where

VSATs should be used rather than the license, the technology and the government

regulations which determine what is best for the overall telecom industry.

Are these posing as obstacles to your growth?



Not an obstacle, it’s a question of yes we are just running today, but if some
of these restrictions are removed then it becomes an open market where you do

what is in the interest of the customer rather than restrictions or regulations

prohibiting something. We will understand from customers what his overall

communication requirement is and we will set it up whether we do it ourselves or

subcontract it.