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Main applications in the field of telecommunication
Satellite system approaches
There are four basic technology categories that form the basis for the various satellite
broadband service offerings: Ku-band FSS, bent pipe Ka-band, on-board processing Ka-band and
L-band MSS. These approaches and representative service offerings are summarized in Table 1.
The first generation services that are now in place use existing Ku-band Fixed Satellite Service (FSS) satellites for two-way connections. Using FSS, a large geographical area (e.g., the United
States or all of North America) is covered by a single broadcast beam.
The new Ka-band systems use more focused
beams that cover a much smaller area (hundreds of
miles across, rather than thousands of miles with FSS)
that form coverage cells like the illustration below.
Adjacent cells use different frequency ranges but a given
frequency range can be reused many times over a wide
geographical area. In this way there is a large increase in
overall capacity because of frequency reuse; the spot
beam frequency gain is analogous to the difference
between a direct-to-home broadcast signal and cellular phone coverage. From a practical
standpoint, Ka spot beams provide 30 to 60 times the system capacity of the FSS approach. The
increase system capacity to 30 Gbps plays a very significant role in helping to make satellite
broadband services a long-term, economically viable business opportunity, as end-users'
bandwidth requirements will only increase over the next five to ten years.
The Ka-band systems under development are being designed with two basic constructs: bent pipe and on-board processing. [1]
Overview of market assessment issues
The recent record of market assessment and forecasting in the satellite industry is mixed at best. Limiting the review to new services aimed at the general business and consumer markets, some have succeeded beyond the expectations of analysts, such as direct broadcast satellite (DBS). On the other hand, the widely-anticipated market for Global Mobile Personal Communication Systems (GMPCS) has failed to materialize. [2]
Threats and opportunities in broadband communications
Given their capabilities, broadband satellite systems are best positioned to offer the services addressing four primary markets.
- Wholesale carrier services.
- Global corporate networking.
- Public service institutions.
- Broadband local loop.
In each of these markets, there are threats and opportunities for satellite carriers. [2]
Strategies for broadband satellite operators : a co-opetitive analysis
The industry and market conditions create a very complex competitive landscape for satellite providers, making it difficult for those providers to decide how they will deal with the many players involved in broadband communications. The framework developed by business researchers Adam Brandenberg and Barry Nalebuff is a useful tool for a co-opetitive analysis of this landscape. [2]
Global market statistical figure and market shares related to the various existing applications
Privatization, consolidation, and growth in commercial space industry
Overall growth in the global commercial space industry continued in 2005. Consolidation,
changing ownership trends, and technology innovations were the key developments in the
satellite services industry for 2005. There were 15 commercial launches in total in 2005 –
matching last year’s number – while satellite manufacturers recuperated from last year’s low
of 12 with the launching of 20 new commercial satellites (see Figure 1). This exceeds
industry expectations of 10-15 commercial satellite orders in 2005.
The general trend towards the privatization of government-owned telecommunications agencies continued in 2005 with the first initial public stock offerings of PanAmSat, New Skies Satellites, and Inmarsat, with Eutelsat expected follow soon. While some industry insiders forecast positive results from private ownership, others caution that innovation and reliability may be undermined in favor of cost efficiency. Other experts argue that private ownership of satellite operators will not fundamentally alter the downward trend in manufacturing, citing other factors such as the increased transponder capacity of nextgeneration satellites. 2005 also saw continued consolidation in the commercial space sector. Overcapacity concerns and resulting depressed prices have led to a string of mergers and acquisitions in recent years, which continued in 2005. In the satellite service sector, Intelsat purchased PanAmSat for $3.2 billion and SES Global purchased New Skies for $760 million. In the launch sector, EADS acquired Dutch Space BV. In the manufacturing sector, Alcatel Alenia merged with Telespazio and SpaceDev merged with Starsys Research Corporation in 2005. The benefits of economies of scale in satellite fleet procurement and management, as well as larger capital market access, promote consolidation. Further industry consolidation may take the form of integration between providers of different types of services. Demand for new digital applications, networking, and data management will likely push satellite service providers to find new ways of using and combining technologies. [3]
ISP (Internet Service Provider) market share: an US perspective
While the majority of online households (67 percent) still access the Web through narrowband dial-up modems, approximately a third of Internet-enabled homes in the U.S. now enjoy the benefits of a broadband connection. Approximately two-thirds of these households with high-speed access use a cable connection, representing 23 percent of all online households. DSL subscribers currently account for approximately 31 percent of the broadband households and 10 percent of all online households in the U.S.
At the provider level, AOL continues to hold a dominant position. Not surprisingly, AOL holds a strong position in the dial-up market, providing service to 45 percent of all narrowband households. On the broadband front, AOL reaches approximately 13 percent of high-speed households through a combination of “Bring Your Own Access” and bundled connections. Comcast and Time Warner/Road Runner, the nation’s two largest broadband providers, together account for approximately 35 percent of U.S. home broadband connections. SBC, the largest DSL provider in the country, supplies access to approximately 10 percent of households with a high-speed connection and 3 percent of all Internet-enabled households (see Table 2).
ISP market share and performance at the local level
An analysis of Internet connection type at the local level reveals important variation by market. For example, in Dallas-Fort Worth approximately 72 percent of all online households in the market access the Internet by a dial-up connection. By comparison, only 59 percent of Web-enabled households in Boston still use dial-up access.
Because the competitive landscape among high speed providers is different in every local market, it is essential that providers accurately understand their standing in the markets in which they operate, by an objective and actionable view of their performance relative to their true, local competitors (see Table 3). [4]
Satellite service providers and the battle for the oilfield customer
For VSAT providers, few markets
are as attractive as the Oil
Industry. Offshore and Land
Drilling, Production, Well Logging,
Pipeline and other Oil Service
support and infrastructure
operations are often located in
remote areas far from fiber networks
making
satellite
the only
realistic
communications
alternative.
Unlike
other
markets
that will
ultimately
be served
by
terrestrial
links, this
market
offers a
secure
promise of
long term
growth for
those VSAT providers dedicated
enough to learn the industry’s
requirements. Many such providers
have recognized the industry’s
potential and are intent on market
entry.
Long term players
like Sola, Petrocom, Stratos,
Schlumberger, Invsat, RigNet and
Polar are finding themselves
competing against aggressive
newcomers like MTN, Verestar and
in some cases, the satellite
operators themselves. Providers
vary in what they offer. Petrocom
offers a high-end, turn key service
package while other providers on
the satellite side tend to work with
third party service providers. In
addition to new market entrants,
new technologies and customer
requirements are changing the
industry.
Companies who have researched
the industry have already
recognized that it is a large and
complex market composed of many
segments, each with its own
requirements. Offshore and land rigs, Logging, Infrastructure
Construction and
SCADA applications
each have different
requirements.
Understanding user
the user’s needs and
applying the most
appropriate
technology solution is
fundamental to
success in the
marketplace. Some
examples include the
rig owner’s desire to
offer their own satellite
services to their subcontractors
through a
single antenna and
modem, a service
requiring VLAN
tagging. In Well
Logging, the need to
uplink large amounts of data from
dispersed locations makes a strong
case for the shared bandwidth
technologies.
Some of the newer technologies
employed in the Oil Field include
iDirect, DAMA, Inmarsat’s Regional
BGAN and Iridium’s data service,
solutions offered to satisfy the
SATMAGAZINE.COM
Back to Contents 30
January 2004
industry’s demand for greater
bandwidth availability, low cost
terminals and mobility. iDirect
solutions have become extremely
attractive since they combine bidirectional,
shared bandwidth with
IP Acceleration and low cost
terminals. In essence, new
technology and the varying
demands of the industry are
bringing to a close the age of the
universal Point-to-Point solution.
Here are just a few examples of how
the new technologies can be
employed in selected segments. [5]
Public and private investment data
Military
- What does the U.S. Navy really want from the commercial sector? Reliability and maintainability, COTS, open architecture, plug and play systems and the ability to lease spares and excess capacity.
- The U.S. military has determined that it will become self-reliant in terms of bandwidth requirements only by 2020, necessitating the need to incorporate commercial satellite services in its internal planning.
- Government market to generate $7.8 billion in satellite communications revenue through 2010.
Commercial
- While C-band and Ku-band capacity was split almost 50/50 in 2002, those bands combined will constitute less than 50% of overall capacity by 2010.
- By 2010, European broadband penetration will reach more than 40%.
- Broadband access subscribers in China grew from 3 million users in 2002 to more than 18 million by the end of 2004.
Broadcasting
- Analog television broadcasts occupied more than half of the FSS video capacity throughout the U.S. in 2002; however, analysts predict that the proportion of satellite capacity carrying high definition digital channels will exceed 60% in 2010 and will generate .3 billion in revenue.
- By year-end 2005, U.S. DBS operators will have an estimated 4.9 million DVR- based users, up from 1million users in 2002.
- Direct-to-Home TV services grew 10% and continued to drive overall growth in 2004.
Enterprise
- Retail companies using digital signage see a 30% increase in sales, while overall store revenues can increase as much as 12%.
- Distance learning, telemedicine and training are the top applications in demand among enterprise clients.
- More than 780,000 star TDMA sites have been sold to core enterprise customers, such as Ford, Mobil/Exxon, the U.S. Postal Service, Rite Aid, Wal-Mart, Best Western and Safeway. [6]
Evaluating and purchasing a communications satellite system
It has been almost half a century since Sputnik first
orbited earth. The progress in satellites, and
particularly Communication Satellites, has been greater
than the comparable first half century for manned flight.
Since the time the first American voice message (a
Christmas greeting from then President Eisenhower)
was delivered from space, the capability has exploded
to pictures, voice and data transmissions that cover the
entire planet.
The procurement of these systems has not advanced as
rapidly. The process that evolved during the early days
of government procurement has hardly changed. While
effective, the procurement system evolved slowly and
has been handed down to succeeding generations of
technical buyers who naturally concentrated on the
science and engineering of satellite system
procurement. Little attention was given to the lifetime
operational and insurance costs.
Buyers of communication satellite systems today must
balance multiple decisions on the TOTAL COST OF
OWNERSHIP (TCO). This evaluation must consider
not only the purchase price, but also the significant
costs of operations over the fifteen-year life of the
spacecraft, as well as the substantial and increasing
cost of insurance. [7]
Supporting policy public practices
The role of satellite telecommunication services
Satellite telecommunications services are an essential part of space
industry and cannot be neglected when building a European Policy on Space. On the contrary, we
believe satellite communications have a primary role to play in the development of the information
society and in bridging the digital divide thanks to their capability to provide cost-effective services to
less-densly populated areas.
Spectrum and frequencies issues
A key regulatory principle flowing from the inherent pan-European nature of satellite-based services is the pivotal role of harmonisation. This has implications on the whole regulatory landscape – from operational networks and services licensing to access to spectrum rights and the need to adopt consistent rules on the putting into service of individual radio apparatus.
Market access
European satellite operators find significant barriers to market access when deploying their networks
and services in specific countries. Such barriers are mainly present in countries outside Europe and
oblige very often operators to undertake cumbersome negotiation procedure, on a case by case, with
every national Administration involved.
Satellite platforms
ESOA’s Board recently underlined the requirement of the satellite operators to see a range of
platforms available for procurement from European suppliers. Up to now, it would appear that a larger
range of platform sizes ‘off-the-shelf’ has been available from US manufacturers than from European
industry. European industry could be in a better position to engage in delivering timely, cost-effective
solutions, by means of market oriented developments.
Ground user segment
The widespread use of digital technology and the MPEG standard for digital satellite broadcasting have given rise to tremendous potential for a much wider range of services and applications. These already extend to interactive services using terrestrial means for the return channel, and there is now considerable emphasis being placed on the deployment of satellite interactive services both in the Ka and Ku-bands.
Applications and services
The development of multimedia satellite mission will need to be supported by a truly successful
development of multimedia satellite services such as tele-medicine, collaborative work, distance
learning, business to business advanced services, along side the ordinary high speed Internet access
services. All stakeholders shall thus aim at developing and promoting such satellite-based services.
These multicasting applications together with traditional broadcasting and unicasting satellite
applications will then justify the use of larger and more flexible spacecraft capacity. [8]
Assessment of the technological advantage of the use of satellite based technology
Advantage of satellite data system
Despite the rapid innovation of terrestrial technologies, satellites still hold a number of advantages over terrestrial counterparts. The benefits include the following: ubiquitous coverage, simplicity, bandwidth flexibility, rapid deployment, reliability, inexpensive installation, fewer outages and scalability.
Potential disadvantages of satellite data systems
There are drawbacks and issues associated with satellite technology. Some of the limitations can be accepted, while others will require a change in the way applications are used or operated and, in some cases, which application is used. The limitations may make satellite systems unsuitable for a limited set of applications.
Just as satellite maintains certain advantages over terrestrial technologies, it has certain disadvantages
as well, particularly when compared to current fiber optic circuits.
Several of the disadvantages of satellites can be resolved operationally through the addition of
ground technology. Security issues are mitigated through encryption technologies, the most common
being Conditional Access Systems (CAS) which encrypt digital video signals to protect against
pirated use of broadcast video networks. Latency is addressed on an application-by-application
basis, either by careful network planning or the use of third party hardware and software designed
to minimize the effects of latency. Overcoming the limited bandwidth and orbital slot disadvantages
is a much greater challenge, and the driving factor behind the emerging broadband satellite designs. Within the last decade, the advances in fiber optic technologies have so dramatically
increased the capacity of fiber lines, that satellites no longer have the ability to provide cable restoration
(backup) services to major international carriers.
Other potential disavantage of satellite data systems are related to the quality of service, the location and the applications. [9],[10]
Performance & trade-offs
The economics
Until now satellites shining glory has been delivering content (TV, movies or real-time data) to large numbers of content consumers using a single transmission. The economic gain for this point-to-multipoint distribution in terms of cost per user/receiver is phenomenal and easily surpasses any other media-fiber, cable/coax, copper or wireless local loop. However, for two-way interactive connections, satellites require a return channel from the user location, which significantly impacts the economic equation.
Performance & trade-offs
Internet access and networking services will have an increasing dependence on high-bandwidth capacity. And the expected bandwidth capacity need will increase three to four fold over the next few years. This demand for continual performance increase requires that service providers plan accordingly and carefully evaluate their overall implementation approach so that their businesses have longer term viability. [1]
See also
Emerging commercial opportunities based on combined communication-navigation services
References
[1] M.Dankberg, J.Puetz
"Comparative approaches in the economics of broadband satellite services".
[2] E.G.Carayannis, J.Alexander
"Virtual, wireless mannah: a co-opetitive analysis of the broadband satellite industry".
[3] Space Security
"Commercial space - Key trends".
[4] comScore.com
"Local market ISP benchmarking report".
[5] Satmagazine.com - January 2004
Satellite Service Providers and the Battle for the Oilfield Customer
[6] satellite2006.com
"Satellite Stats & Facts".
[7] Satmagazine.com - January 2004
Satellite System Acquisition: A Fresh Approach to Evaluating and Purchasing a Communications Satellite System
[8] European Satellite Operators Association
"ESOA General Comments on the European Space Policy and Research and Development Policy in the field of Satellite Telecommunications".
[9] more.net
"An Introduction to Satellite-based Data Services".
[10] Pioneer Consulting
"Abridged executive summary".
