NEW DELHI: U.S.-based mobile satellite communications company Iridium, which has been trying for years to set shop in India, has said it is interested in investing in the country but a 'distorted' process of vendor selection is coming in its way.

The company also alleged that the state-run telecom firm BSNL appeared to be working with just one organisation, INMARSAT (International Maritime Satellite Organisation), to provide satellite communications services in India which could make the offering very costly due to lack of competition.

When contacted, BSNL spokesperson did not reply to specific queries in this regard and even on the status of deal between the company and INMARSAT. There was no reply to queries sent to the Department of Telecom as well.

Iridium said it is interested in investing and providing services in India under conditions approved for INMARSAT services, but it has not been offered any opportunity so far.

"BSNL appears to just be working with INMARSAT, and we understand that only one operator will be selected for service," an Iridium spokesperson told PTI in an emailed reply to queries on whether Iridium has written to the new government about its complaints.

"We believe this will be more costly, as there will be no open, competitive process to ensure the lowest cost and highest services to the Indian consumer and government customers."

Defence Ministry has urged DoT to expeditiously set up a satellite gateway in country as many of its existing satellite phone will stop functioning due to retirement of INMARSAT's old satellite in September 2014.

BSNL got a letter of intent from the DoT on July 9 and signed an in principle agreement with INMARSAT on September 2.

When contacted, an INMARSAT spokesperson said it is only a certified operator of the Global Maritime Distress Safety System which was created by the International Maritime Organisation (IMO).

"The IMO and INMARSAT's provides this service free of charge to all countries, including India. INMARSAT is the largest and leading provider of mobile satellite services having some of the lowest cost services in the world," the INMARSAT spokesperson said.

DoT in 2010 had asked BSNL to work with INMARSAT or any other service provider to set up satellite gateway in country.

The Iridium spokesperson further said that "the lack of competition will allow INMARSAT to raise prices, like they've done around the world recently."

"Iridium understands the government has chosen, through BSNL, to distort the competitive process by paying directly for a gateway, using India's treasury, and offering a royalty for service to the satellite provider," Iridium said.

The DoT in December 2013 approached telecom regulator TRAI, which in May recommended that BSNL be allowed to set up a satellite communication gateway under a special category exempting INMARSAT services from need of taking licenses.

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