Statement
by
Mr. Navin Kapila
Vice President, Corporate Development
ICO Global Communications

Tuesday, 26 March 2002

Mr. Chairman

Secretary-General ITU

Excellencies

Director BDT

Distinguished Delegates

Ladies and Gentlemen

The pace of economic activity  in many parts of the developing world is one of the greatest challenges facing us today. Numerous studies show that uneven access to telecommunications infrastructure is one of the greatest hindrances to balanced indigenous economic growth and bringing about socio-economic coherence. All of us in the telecoms business have a responsibility to roll out services that could fuel the engine of economic growth and lead to better prospects for millions of people.

The big question discussed and debated at various fora has always been: How can communications infrastructure be provided at a cost that countries in need can afford?

Terrestrial networks, both wireless and fixed, can get us part of the way. However, such terrestrial networks cannot economically and expeditiously provide coverage in remote or rural areas. Mobile satellite technology can complement these systems and provide “instant infrastructure” in rural, suburban and also urban communities at a fraction of the cost. This will save the global economy many billions that would be otherwise needed to bridge the digital divide.

With a communications satellite orbiting far out into space, a large footprint of radio energy can connect vast territories instantly. We firmly believe that satellite connectivity will help generate a spirit of entrepreneurship and a flow of investment in the most neglected areas of the world. This is certainly the best way forward for transforming less-developed societies into active communities able to take advantage of the opportunities of the 21st century.

Calamity natural or man made can strike anyone, anywhere and the stark reality was brought home by the devastation in Afghanistan today. Mobile Satellite Communications, which is not prone to vagaries of nature or to vandalism, is also an ideal solution for emergency telecommunications. ICO  sponsored a study conducted by Govt. of Sri Lanka, ITU, the United Nations Office of Co-Ordination of Humanitarian Assistance. This report  provides an in-depth analysis of emergency telecommunications and  identifies  regulatory, management issues and responsibilities in the face of a disaster. The role of different players, including regulators, emergency services and civil authorities is also discussed. This report is available from OCHA, ITU, Govt. of Sri Lanka or ICO.

ICO Global Communications was created with a vision that satellite communications would be offered at a reasonable per-minute-cost. We have already launched  one satellite which is undergoing in-orbit testing and the remainder of our constellation is well under way towards completion. Of our 12 gateways, 10 are nearly complete.

However, as you are well aware, no one has yet been in a position to deploy mobile satellite communications in a way that makes a difference to the masses. Costs are high, and problems with certain regulatory issues are threatening to make them even higher, thereby making provision of telecommunications infrastructure to many communities an uphill task.

For satellite mobile systems to be deployed, spectrum availability and clearance, together with licenses in individual countries are an integral and paramount issue.

The two categories of costs – license fees, and spectrum clearance -- increase the financial burden on operators, who are already heavily exposed in capital costs. These costs ultimately get passed on to the end user. And raising the real cost-per-minute shrinks the market significantly, unable to realize economies of scale. The result is that mobile satellite services for the masses become expensive and inaccessible and therefore may never be realized. We therefore urge that administrations and ITU to address these issues very seriously and urgently – these additional costs related to license fees and spectrum clearance need to be reduced significantly or eliminated altogether.  By doing this, you will find the MSS industry will not only help in realizing the vision of global connectivity but also playing an important part in the evolution of the global information society.

To conclude, I would like to reiterate, that innovative and responsive regulation holds the key to exploiting the potential of mobile satellite in bridging the digital divide.

Thank you Mr. Chairman.