Technological developments are rapidly enhancing mobility and efficiency in satellite service: new bands are being explored for industrial service delivery, and innovative satellite applications increasingly help put new users on the grid. While the satellite industry enhances its value to investors and end users, regulators are taking steps of their own, particularly in developing markets. And while they want to promote development of broadband or backhaul service, they want to exert greater control over it – witness the recent World Conference on International Telecommunications.

With the possible exception of Libya, which has taken steps to open the market following the conflict, countries that have shifted away from monopoly control are gravitating toward more evident and onerous gateway, hub and lawful intercept obligations on operators accessing their markets. National security and intelligence agencies are slowly moving out of the shadows while operators negotiate data monitoring compliance capabilities as part of their service approvals. However, transparency concerning acceptable architectures still remains low.

Diligence on the regulatory front is, therefore, more important than ever; especially for investors who want to be assured that network design considers regulatory requirements for gateway location. In the United Arab Emirates (UAE), for example, the licensing environment for VSAT and services alike has tightened in recent years. The three locally-licensed service providers Etisalat, du, and Yahsat are no longer allowed to simply cover foreign customers and end-users under the umbrella of their licenses for a fee. These operators are now required to have full control over their customers’ ground and space segment, landing traffic at hubs in the country. The UAE has increased enforcement too: last autumn, the TRA reported the confiscation of more than 27,000 satellite phones and other unlicensed devices in enforcement raids.

In the same neighborhood, Yemen, known for a large grey market in satellite services, has also taken steps to tighten control. Extremely high bypass charges, levied to work under the umbrella of the monopoly, caused many satellite users to avoid regulatory approvals altogether. Later this year, a new regulation will take effect requiring a ground and space segment lease from TeleYemen, the local telco. This will include landing at a local hub, and – it is promised – reduced fees.

Where the obligation is not explicitly stated in regulation, obtaining a clear statement on compliance is a matter of persistence – and in some instances, faith.

Argentina’s satellite service regulation does not specify a requirement to locate a hub in-country; however the regulator asserts that a hub is required for any non-private network.

Nearby, Brazil recently began enforcing a regulation that, for as long as it has existed, was reportedly repeatedly skirted. Service providers in Brazil with a Global Mobile Satellite Service license for example, must buy their satellite capacity from a Brazilian-registered “Legal Representative,” through which satellite operators must sell capacity – satellite operators must separately have landing rights to land a signal in the country. Some regulators, motivated by security concerns or shrinking treasuries in austere times, are stepping up their enforcement efforts. India does not permit use of ESVs in motion, full stop; such technologies must – as for any other satellite service – be routed through a local gateway. Indian authorities have most notably seized mobile satellite equipment at its borders and ordered equipment removed from visiting ships. Other countries such as Italy have also seized equipment from vessels for not being properly registered, and enforced outsized fines.

Conclusion

As satellite networks extend their reach through mobile services and adoption of innovative uses, many regulators are seeking closer oversight of them. Satellite operators and integrators would be wise to develop their own catalogues of key regulation in the markets they plan to serve as a matter of investor reassurance, network planning, and risk mitigation. Like a “carrot,” regulators in developing markets are – in the main – becoming more transparent and in some cases “customer focused” – and are demanding engagement in return. But the “stick” of enforcement is being wielded more regularly too.

Nina Beebe is director for emerging markets at Access Partnership in London. She assists satellite service integrators, operators, and others in securing market access and licenses on a global basis.