Aayush Aggarwal
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MUMBAI: The Comptroller and Auditor General (CAG) of India has laid its report 'management of satellite capacity for DTH service by Department of Space' on the table of Parliament. And the report has severely criticised the entire process of satellite capacity management right from planning of satellite capacity, to allocation and leasing of transponders.
The CAG audit was to evaluate whether planning and realisation of satellite capacity for DTH service was done with a view to give economic, efficient and effective service, whether allocation of satellite space was transparent, fair and equitable and whether transponder lease agreements safeguarded the financial interest of the government.
Failures of DoS
The DoS has been lagging in its launch of satellites leading to losses of revenue as well as trust. Out of the nine satellites with 218 Ku band transponders, planned during the 11th five year plan, only three were realised with 48 transponders. This was only 22 per cent of the target.
The audit report states that despite having sufficient funds, DoS did not consider procured launches for its ready satellites or acquire satellites in orbit and position it under the orbital slot coordinated by India. Technical problems with transponders and satellites committed for DTH also hampered the DoS and hence it was forced to use these capacities as a replacement for satellites being decommissioned. Because it could not fulfill the needs of the DTH operators, they migrated to foreign satellite systems. Of the 76 transponders which DTH operators were using only 19 of these were on Indian satellites in July 2013. That number fell to seven when, in July 2013, Tata Sky surrendered its 12 transponders and migrated to a foreign satellite. The DTH service providers later did not prefer to return to INSAT due to trust deficit. Crowding of foreign satellites would affect the INSAT system and result in non availability of the strategically important slots for India. This clearly has lead to loss of opportunities for revenue generation and strategic interests.
GSAT8 which was initially intended for DTH use ended up being allocated for non DTH use after a three year delay. GSAT9 and GSAT15 were not launched citing non availability of launch vehicle GSLV. The audit saw that two other satellites were launched through procured launches. Rs 250 crore and Rs 345.36 crore were spent for launching GSAT 8 and GSAT 10.
CAG also stated that the prices of transponders from foreign satellites were increased by 5 to 33 per cent over one to six year period, while INSAT users paid the same charge for over six to 10 years. When the DoS did decide to raise prices by 15 per cent, it was never carried out.
The report gives the following recommendations:
1. DoS and ICC may frame a transparent policy for allocation of satellite capacity for DTH services and all future satellite capacity allocations may be made based on the same.
2. DOS may consider creating Ku band satellite capacity for DTH services commensurate with the demand in the sector and requirement for national and strategic applications.
3. DoS may clearly define short term and long term strategy for allocation of Ku band satellite capacity to DTH service providers on domestic and foreign satellites to ensure continuity to the existing users as well as to bring those DTH service providers using foreign satellites back to INSAT/GSAT system.
4. DOS may incorporate price revision clause in long term transponder lease agreements and revise the transponder prices in time to avoid extending undue benefit to the service providers.
Read further here: http://www.indiantelevision.com/dth/dth-operator/dos-gave-precedence-to-tata-sky-over-dd-cag-report-141129
Click here for the full report: http://www.indiantelevision.com/links/CAG-final-full-report.PDF
Have a look at it!
The CAG audit was to evaluate whether planning and realisation of satellite capacity for DTH service was done with a view to give economic, efficient and effective service, whether allocation of satellite space was transparent, fair and equitable and whether transponder lease agreements safeguarded the financial interest of the government.
Failures of DoS
The DoS has been lagging in its launch of satellites leading to losses of revenue as well as trust. Out of the nine satellites with 218 Ku band transponders, planned during the 11th five year plan, only three were realised with 48 transponders. This was only 22 per cent of the target.
The audit report states that despite having sufficient funds, DoS did not consider procured launches for its ready satellites or acquire satellites in orbit and position it under the orbital slot coordinated by India. Technical problems with transponders and satellites committed for DTH also hampered the DoS and hence it was forced to use these capacities as a replacement for satellites being decommissioned. Because it could not fulfill the needs of the DTH operators, they migrated to foreign satellite systems. Of the 76 transponders which DTH operators were using only 19 of these were on Indian satellites in July 2013. That number fell to seven when, in July 2013, Tata Sky surrendered its 12 transponders and migrated to a foreign satellite. The DTH service providers later did not prefer to return to INSAT due to trust deficit. Crowding of foreign satellites would affect the INSAT system and result in non availability of the strategically important slots for India. This clearly has lead to loss of opportunities for revenue generation and strategic interests.
GSAT8 which was initially intended for DTH use ended up being allocated for non DTH use after a three year delay. GSAT9 and GSAT15 were not launched citing non availability of launch vehicle GSLV. The audit saw that two other satellites were launched through procured launches. Rs 250 crore and Rs 345.36 crore were spent for launching GSAT 8 and GSAT 10.
CAG also stated that the prices of transponders from foreign satellites were increased by 5 to 33 per cent over one to six year period, while INSAT users paid the same charge for over six to 10 years. When the DoS did decide to raise prices by 15 per cent, it was never carried out.
The report gives the following recommendations:
1. DoS and ICC may frame a transparent policy for allocation of satellite capacity for DTH services and all future satellite capacity allocations may be made based on the same.
2. DOS may consider creating Ku band satellite capacity for DTH services commensurate with the demand in the sector and requirement for national and strategic applications.
3. DoS may clearly define short term and long term strategy for allocation of Ku band satellite capacity to DTH service providers on domestic and foreign satellites to ensure continuity to the existing users as well as to bring those DTH service providers using foreign satellites back to INSAT/GSAT system.
4. DOS may incorporate price revision clause in long term transponder lease agreements and revise the transponder prices in time to avoid extending undue benefit to the service providers.
Read further here: http://www.indiantelevision.com/dth/dth-operator/dos-gave-precedence-to-tata-sky-over-dd-cag-report-141129
Click here for the full report: http://www.indiantelevision.com/links/CAG-final-full-report.PDF
Have a look at it!
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