Workshop on VSAT and MSS Business Applications

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VSAT and MSS Market Overview

• Abdelfattah ABUQAYYAS
• CoE/ARB Coordinator
• abuqayyas_at_itu.int
• ITU - BDT

2
Topics

• Global Satellite Market - Overview
• Mobile Satellite Systems (MSS)
• Messaging
• Voice
• Broadband data
• Satellite and Internet
• VSAT Trends and Markets
• Satellite Technology Trends and Challenges
• Satellite Regulatory Issues

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Global Satellite Communication

• Commercial satellite communications are rapidly
  becoming a large and global business, increasing
  from 11 billion in 1992 to 20 Billion in 1996
  and will reach 75 Billion in 2005
• The improvement covers all areas Satellites,
  Services, Technology, Orbits, Spectrum, Mobility,
  Marketing, Service provision and many other
  aspects.
• KEY DRIVERS INTERNET
• Current industry estimates project that there
  will be over 500 million worldwide Internet users
  by 2005.
• Businesses will be spending over 100 billion on
  such services in 2005

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Change in the Global Satellite
Telecommunications market

• Growth in overall demand for telecommunications
  driven by Internet
• Fiber capacity will rise and costs will fall by
  several orders of magnitude
• Can operators survive?
• Continuation of last mile problems for fiber
• Satellite capacity expands through technological
  advances but much slower growth rate than fiber
• Satellites may lose out in specific regional /
  application markets but will gain significantly
  in overall global revenues
• Satellites will continue to offer instant
  infrastructure solutions - especially for
  broadcast applications and interactive services
  in regions with developing telecommunications
  infrastructure
• Work with other solutions - not against them

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Mobile Satellite Services

• MSS Services
• Messaging
• Voice
• Broadband data
• Current MSS Market
• 75 of the current market for MSS is data-only
• Business to business sales
• Relies on customer education, value- added
  Services

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Mobile Satellite Systems for Messaging (Little
LEOs).

• Little LEOs use low Earth orbits to provide
  global data and messaging capabilities to a
  variety of markets through small, low-power
  transceivers.
• The satellites operate at frequencies below 1
  GHz to take advantage of favorable signal
  propagation and low cost transmission equipment.
• Applications include cargo tracking, utility
  meter reading, monitoring of remote
  meteorological, geological or maritime
  instruments, paging, computer and personal
  messaging

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Little LEO Market Segments

• Messaging 56
• Electric meter reading 28
• Asset tracking 12
• SCADA 2
• Maritime and aero 2

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Mobile Satellite Systems for Voice ( GEO, MEO
and Big LEO)

• Before 1997
• Price of service ( 5.50 to 10/ minute)
• Price of terminal ( 14,000 to 50,000)
• Size of terminal (large and bulky)
• Prices of service and terminals have been
  reduced
• Price of service (1 to 2 per minute)
• Price of terminal (2000 to 3000)
• Size of terminal - notebook size

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MSS for Internet and Multimedia (Ka Satellite
systems)

• Ka-band operates in the range of 18 to 31 GHz
• The Ka-band satellite systems are the wave of
  the future because they provide fast, high
  bandwidth, worldwide communication.
• Will offer the same multimedia which is now
  available from the desktop computer, but in a
  hand-held portable unit.
• LEO with Ka Satellite communication systems are
  a sure thing.

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Future Broadband Satellite Systems

• The LEO constellation is likely to be used by
• Teledesic
• M-Star
• SkyBridge
• V-Band
• The MEO and GEO constellation is going to be
  used by
• GESN - Combination of GEO MEO
• StarLynx - MEO
• WEST MEO - Combination of GEO MEO
• Spaceway - Combination of GEO MEO
• Others
• Celestri LEO GEO
• Ellipso High Elliptical

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LEO, GEO Comparison
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Mobile Satellite Services2000 - 2005

• What are the market prospects how many
  customers?
• What are revenue prospects for mobile satellite
  services?
• How many operators can the market sustain?
• What is the current status of MSS system
  implementation?
• MSS Market trends
• Mobility.
• Broadband.
• Need for global availability.
• Service direct to the user.

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Role of Satellites in the Internet

• Delivering the content to the user Pulling
• For long haul traffic, satellites are a
  particularly efficient means of delivering
  content globally.
• Pushing internet content directly to the edge
  of the Internet, to ISPs close to the users.
• Broadcast of the same content to multiple sites
  at the same time
• Broadband internet access to the end user Last
  mile
• particularly in geographic regions which are
  large and/or less densely populated
• IP VSAT networksadvanced corporate Networks

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Role of Satellites in the Internet Delivery
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BroadbandConnections (in millions)
Type 2001 2002 2003 2004
Cable 6.1 8.5 10.1 13.9
DSL 4.1 6.4 9.2 12.3
Wireless includes Satellite) 0.35 0.785 1.9 4.3
Total 10.55 15.68 21.29 30.35
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BroadbandConnections (in millions)
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Delivering the content to the user Pulling

• Satellites already are playing an important role
  in carrying Internet traffic.
• The asymmetric nature of this traffic The lower
  data content inquiry can be sent via terrestrial
  facilities and the return higher-data rate
  content can be sent via satellite.
• The satellite industry has ably demonstrated that
  satellite technology can operate smoothly with
  TCP/IP
• Hybrid connections for hauling ISP traffic are
  often chosen by ISPs.
• Satellite systems, in addition to transporting
  the Internet content on their own facilities,
  have been adding high-speed fiber connections and
  points-of-presence at network access points which
  allow customers to access the Internet backbone
  networks
• Emerging markets may prefer satellite-only
  approach because of the unavailability of fiber.
• Entities providing satellite ISP backhaul service
  include not only the satellite system operators,
  but teleport operators, telecommunications
  administrations and companies which use a variety
  of communications media.

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Pushing internet content directly to the edge
of the Internet

• satellites have developed services called
  multicasting and caching
• Take the internet content from the content
  provider, uploads this to the satellite(s) and
  broadcasts the content, and updates, to ISPs and
  their points of presence.
• The ISPs have servers located in dispersed
  locations which store the content and make it
  available to the web user.
• old way
• User types in web address, transmission is
  relayed to the server where the content resides,
  multiple back and forth transmissions occur
  between the user, the ISP and the content
  providers server, and the user can wait for the
  download, The equivalent of having everyone fly
  to Hollywood to see the latest movie.
• New way
• User types in web address, transmission goes to
  ISP which checks for closest location of content
  from website (hopefully near the user), and
  content moves expeditiously from the nearby
  server to the user. moving the content to the
  edge of the Web.
• Satellites are ideally suited to provide this
  service

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Broadband internet access to the end user Last
mile

• This can be in the form of advanced VSAT networks
  aimed at corporate customers
• With advanced IP modems and interfaces which
  allow organizations to use the satellite system
  for high-speed Internet access, data
  transmission, video and voice.
• Increasingly, satellite VSAT networks will
  upgrade to higher functioning and more flexible
  IP networks.
• The two-way broadband services for consumers are
  also being implemented, (DirecPC)
• It is more likely that the two-way broadband
  services to end users will move forward more
  rapidly as they are integrated into DTH service
  offerings
• Satellite networks will continue to have a role
  in provision of two-way broadband service to the
  end user.

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Global Internet Traffic Growth
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Remarks

• Satellite is one of the most efficient and
  cost-effective means to broadcast to the
  Internet Internet is perfect for satellite
  transmissions.
• With satellite, consumers in areas without
  terrestrial broadband infrastructure can still be
  served, this solves a critical part of the
  broadband access equation--the last mile.
• Bandwidth demand will always exceed bandwidth
  supply. Satellites can, and will, play an
  integral part in moving the Internet traffic to
  broadband users.
• People today are used to the 'world wide wait,
  but that tolerance is dropping fast.
• "Content distribution networks" is a new buzz
  term, and satellite can help these networks push
  content right to the edge, close to the end user.
  This solves the Internet backbone congestion
  problem .

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VSAT Trends and Markets

• Trends
• Higher data rates
• Application specific in developing world
• Remote / thin route telephony
• Consolidation of service providers
• New Applications / Markets
• ISP connections to Internet backbone
• Broadband VSAT
• DTH with integrated TV / web content

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VSAT and Competitive Pressure

• Higher capacity of fiber
• Submarine and terrestrial
• Increases by a factor of 1000
• Wireless Access
• G3 for mobility
• Higher capacity local loop
• xDSL (but limited penetration)
• Cable modems (very limited penetration and
• problems with grade of service)
• Doesnt really address regions with developing
  telecommunications infrastructure

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Conclusions

• Fiber will continue to dominate the high-density
  trans-oceanic / intercontinental point-to-point
  market
• Interconnection and interoperability will be a
  major issue
• Satellite will continue to offer instant
  infrastructure to underserved areas
• Demand for satellite services will increase -
  driven by demand for IP access and higher data
  rates

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Satellite Technology Trends

• Technological Developments.
• On-board processing (OBP)
• Beam switching and multi beam antennas
• Inter-satellite links RF and Optical
• Ka-band
• Higher aggregate data rates
• Smaller terminals
• The Future for Satellite Technology
• Growth requires new frequency bands.
• Problem of Propagation through rain and clouds,
  attenuation by foliage and by buildings needs
  solutions.
• Low cost phased array antennas for mobiles are
  needed.
• Optical Communications for inter-satellite links.
• Protocols for Satellite Networks.
• BUT The future looks bright.

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Current Trends in Satellite Communications

• Bigger, heavier, GEO satellites with multiple
  roles.
• More direct broadcast TV and Radio satellites.
• Expansion into Ka, Q, V bands (20/30, 40/50
  GHz).
• Massive growth in data services fueled by
  Internet.
• More mobile services.
• Key Satellite Trends
• DBS and Digital Radio
• Mobile satellite service - GSOs,
• Big and Little LEOs
• Ku- band VSATs
• Ka- band high data rate
• GPS

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Risk Factors and Challenges

• External Drivers for Satellite Boom
• Globalization of Communications.
• Privatization and Competition.
• Mobility Requirements.
• Bandwidth / Data Rate Needs The Internet.
• Rapid Deployment.
• Ubiquitous Coverage.
• Wide Bandwidth (Ku, Ka and Above).
• Challenges Still Remain
• Launch problems.
• In-orbit anomalies.
• Licensing and interconnection.
• Delivering the service and handsets to the
  market.

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Future Needs and Market Trends

• Drastic need for more MSS allocations - demand
  will exceed spectrum.
• Need to use spectrum efficiently (e. g., sharing
  between NGSO and GSO systems).
• Need to integrate use of satellites with
  terrestrial systems - broadband systems, and
  satellite component of advanced wireless
  communications systems.
• Market trends
• Mobility.
• Broadband.
• Need for global availability.
• Service direct to the user.
• But MSS telephony sector unlikely to grow
  significantly

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Policy and Regulatory issues

• Policy issues
• Liberalization and competition
• Market access
• Improved access
• Confidentiality of information
• Foreign investment
• International regulatory mechanism
• Regulatory issues
• Licensing
• Disaster relief
• Regional transponder agreement
• Mutual recognition
• Import duties
• Type approval
• Spectrum

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Satellite Regulation

• The Challenge universal access is now not so
  much an engineering or supply-side problem but
  rather a regulatory and policy challenge.
• Regulation is for promoting the competition
• Licenses to offer telecommunications services
  should be granted on a technologically-neutral
  basis.
• Regulations Can Encourage - or Discourage -
  Access to Satellite Communications Solutions

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Levels of Regulatory Obligations

• Satellite Operator Level
• International ITU
• National Registration/License
• Satellite Network Operator Level
• Services License
• Satellite Earth Station Level
• Radio Frequency License
• Space Segment
• The provision of space segment should be governed
  by ITU intersystem co-ordination through the
  Radio Regulations
• Because Earth Stations Have Already Undertaken
  Intersystem Co-ordination Through ITU Radio
  Regulations

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The Role of ITU

• GMPCS
• GMPCS Global Mobile Personal Communication
  Systems, which provide Transnational, Regional or
  Global coverage from a constellation of
  satellites accessible with small and easily
  transportable terminals.
• Whether the GMPCS are geostationary or non
  geostationary, fixed or mobile, broadband or
  narrowband, global or regional, they are capable
  of providing telecommunication services directly
  to end users such as 2 way messaging, voice, fax,
  data and even broadband multimedia.
• Role of the ITU
• During the first (WTPF) 1996, five
  principles and issues related to the introduction
  of GMPCS systems have been adopted, one of them
  proposed a Memorandum of Understanding (MoU) to
  facilitate Arrangements for type approval,
  licensing, marking, provision of traffic data,
  and customs recommendations related to the free
  circulation of GMPCS terminals (GMPCS-MoU).

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GMPCS MoU

• The Signatories will develop arrangements on the
  essential requirements necessary for the
• Type Approval of Terminals
• Licensing of Terminals
• Marking of Terminals
• Customs Arrangements
• Access to Traffic Data

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POLICY AND REGULATORY FRAMEWORK

• Trends in the telecommunications world.
• New technologies
• More liberalization
• More competition
• Search for socio-economic benefits
• The Policy Environment.
• Permit new services.
• Open market
• User benefits of quality, price, range of
  services
• Socio-economic benefits
• Decline in the Dominance of Government-backed
  Consortia, like Intelsat and Inmarsat.
• Competition with private satellite operators and
  fiber optic cables.
• Privatizations and Commercialization of Satellite
  Industry Intelsat, Inmarsat..
• OPEN SKIES IS AN IMPORTANT ISSUE!!!!

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Position of Developing Countries

• ITU has been providing policy advice for many
  years.
• Many are modernizing their telecom policies
  regulations.
• High license fees, high import duties, high
  service charges.
• BUT they are starting to come down.

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KEY DRIVERS FOR THE FUTURE

• The following would be key guideposts to the
  future
• Whether the global shift to fully competitive
  telecommunications markets continues.
• Whether global trade agreements of the WTO
  enforced.
• WTO continues to break down barriers
• No more telecom monopolies by 2010?
• Whether new technologies in optical
  communications, high power generation, on-board
  processing systems, antenna technologies and
  lower cost launch systems evolve.
• Whether there is continuing global
  consolidation, merger and partnerships.
• Whether INTELSAT, Inmarsat, and EUTELSAT are able
  to adapt to fully competitive markets.

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VSAT and MSS Market Overview

• Thank You
• abdelfattah.abuqayyas_at_itu.int