World Broadband Satellite Service Markets example essay topic

In recent years the demand for high-speed networking, driven mainly by the rapid expansion of the Internet, has been growing at an exponential rate. While a wide range of wire line and wireless solutions offering broadband connectivity are or will shortly be available, communication satellites are beginning to emerge as an attractive solution in providing broadband connectivity to a variety of users. The wide area or global coverage of satellites enables service provision to a large number of dispersed users and solve the expensive 'last-mile' issue without dedicating to each user cable, fiber, switching equipment ports, etc. The broadcast nature of satellites supports efficiently the transmission of the same message to a large number of stations, making satellites the natural choice for multi casting services. Satellites are also attractive for interconnection of geographically distributed high-speed networks, or for providing other multimedia services to both home and business users.

Hence, while much broadband communication today is carried via terrestrial links, satellites will come to play a greater and more important role. This can be demonstrated by the increasing commercial interest in this area and the large number of systems that are currently under development. On the other hand, considerable research work is under way to overcome some of the serious shortcomings inherent in satellite-based systems, such as significant propagation delays, wireless channel quality, exposure of systems to space radiation, etc. The service focus and nature of satellite systems themselves is also changing, with revolutionary new technologies such as on board switching, spot-beam technology, inter-satellite links and constellations of systems in a variety of orbits (LEO, MEO, GEO, or Hybrid Orbits), that represent new challenges for the satellite industry. As with any hot topic today, the World Wide Web offers a wealth of information on satellite systems and networks. In these pages we try to collect some of this information in a somewhat organized manner.

We try to focus on links relevant to Broadband Satellite Systems, although we also provide links and information to related topics in the more general areas of satellite systems and communication networks. There is material here that could be useful to a satellite expert, an engineering professional who is new to this topic, or even anyone curious to find out more about satellite networks. The demand for Internet bandwidth has grown rapidly in the past few years. A new generation of broadband satellite constellations promises to provide high speed Internet connectivity to areas not served by optical fiber, cable or other high speed terrestrial connections. However, using satellite links to supply high bandwidth has been difficult due to problems with inefficient performance of the Internet's TCP / IP protocol suite over satellite. We describe an architecture for improving the performance of TCP / IP protocols over heterogeneous network environments, especially networks containing satellite links.

The end-to-end connection is split into segments, and the protocol on the satellite segment is optimized for the satellite link characteristics. TCP congestion control mechanisms are maintained on each segment, with some coupling between the segments to produce the effect of end-to-end TCP flow control. We have implemented this design and present results showing that using such gateways can improve throughput for individual connections by a large factor over paths containing a satellite link. SAN ANTONIO -- (BUSINESS WIRE) -- April 24, 2000 -- The explosion of the Internet in the 1990's and subsequent demand for high-speed Internet connections has put an immense strain on terrestrial communications networks. Consequently, satellite broadband technology is now emerging as an important alternative to land-based services such as cable or DSL.

According to strategic research conducted by Frost & Sullivan ( web), 'World Broadband Satellite Service Markets,' revenues for the total market have climbed by more than 100 percent to $198.6 million in 1999. Rapid market growth is anticipated to continue through 2006. Despite the promise of this nascent industry, satellite technology will have to find its niche in the marketplace. Ultimately, providers might find the best opportunities in remote regions with weak infrastructures.'s atellite technology remains an efficient way to serve rural or remote areas due to its wide-area coverage and low marginal cost for providing service to areas with low subscriber density,' say Frost & Sullivan analysts Maya Tse and Clara Sigrid Lo. As multimedia applications are increasingly used in areas served by cable infrastructure, users who live or work beyond major metropolitan areas will have to find alternative means to stay connected. Satellites could be that alternative.

' Prime targets for broadband satellite services include countries with vast national territories, such as Australia, where the telecom services are often underdeveloped outside major metropolitan areas, and archipelago nations, such as the Philippines,' says Tse.'s atellite companies must excel at marketing to ensure the survival of their systems,' says Lo. 'Branding and establishing customer recognition will be key. Finding and forming alliances with strong local partners is crucial to the successful marketing of regional and global systems. ' This Frost & Sullivan report analyzes the markets for Internet services via satellite and next generation broadband satellite systems. It evaluates market drivers and restraints, tracks technology and pricing trends, and presents expert forecasts for each segment. Frost & Sullivan presents 2000 Market Engineering Awards to companies that have worked hard to make a positive contribution to the broadband satellite service industry.

The Marketing Strategy Leadership Award is presented to PanAmSat (Nasdaq: SPOT). Market participants include Ale nio Aero spazio; Asia sat; Astra-Net; Astrolink; Crawford Communications; Cyber Star; Direct Internet Corporation; Europe Online Networks-SA; Eutelsat; GE Americo m; Harmonic Data Systems; HOT Telecommunications; Hughes Network System; Infoline; Intelsat; Inter Packet Group; Internet Skyway; Japan Satellite Systems (JCS at); Korea Telecom; Lockheed Martin Global Telecommunications; Loral Orion; Loral Space & Communications; Micro space Communications; Net Sat Express; New Skies Satellites; Pacific Century Cyber Works; PanAmSat Corporation; Pick Sat Communications; Sky Bridge; Societe Europeenne des Satellites (SES); Space Communications Corporation; Space line Communication Services; Space net; Tachyon; Teledesic; Tele sat Canada; Tel scape International; and Zak sat. Frost & Sullivan, which is headquartered in Mountain View, Calif., is a global leader in international market consulting and training. Frost & Sullivan monitors the Telecommunications industry for market trends, market measurements and strategies. This ongoing research is used to complement the Broadband Access Services Custom Subscription. Free executive summary for the report is available to the press.

Along with publishing in-depth market consulting reports, Frost & Sullivan also provides custom consulting needs to variety of national and international companies. World Broadband and Satellite Service Markets Report: 5876-66 Publication Date: April 2000 Price: $3,450 -- 30 -- cs d / sa CONTACT: Frost & Sullivan, San Antonio Kristi Grier, 210/247- web TEXAS CALIFORNIA INTERNATIONAL CANADA ASIA PACIFIC INDUSTRY KEYWORD: INTERNET TELECOMMUNICATIONS Cautious campaign for satellite broadband [First published in Contact, 22 June 2000] Within a few years it will quite literally be possible to look to the stars for fixed broadband connections. Several satellite-based systems are in the works to compliment cable-TV, ADSL, LMDS and the other land-based technologies. Ericsson is following these developments with interest. The company plans to be ready when things take off. New Technology The final link is generating a great deal of discussion these days - the final link into people's homes.

While it is difficult enough to build a comprehensive national network for broadband communications, the real problems begin when you start connecting subscribers in rural areas. Laying fiber-optic cable all the way out to end-users is both complicated and expensive. Better alternatives include utilizing existing lines - copper telephone wires or cable-TV coaxial cables. An easier alternative would be to transmit the information through the air via radio waves. Ericsson is taking advantage of all three options in its strategy for broadband access. It offers the expanding broadband market ADSL solutions for high-speed communications via telephone networks, cable-TV modems and radio links for wireless access, known as LMDS.

There is, however, a fourth alternative that the company wants to be involved with - broadband access via satellite. Among the company's strategies, this option falls under the 'other techniques' category. Most probably, satellite access will serve as a complement to land-based technologies. But there are those who claim just the opposite. Some satellite operators view themselves as direct competitors to copper, coaxial and LMDS. New subscribers quickly join Access is the big advantage.

With four geostationary satellites in a belt around the equator, one operator can more or less cover the earth's entire surface. And once the satellites are in space, it will be easy to attract new customers. The only thing needed is a terminal - a radio link aimed upwards instead of towards a node on a mast a few kilometers away. 'For a company that wants to build an intranet connecting its facilities around the world, this is an outstanding solution,' says Ingmar Karlsson, who works on satellite terminals for broadband access at the company's New and Special Business Operations business unit.

'With a terminal at every facility, the company will no longer have to rent space on several national networks and sign agreements with numerous operators. ' The main disadvantage is the investment costs. It is expensive to launch satellites and expensive to manufacture terminals that are capable of handling two-way communication at several megabits per second with a satellite that is thousands of kilometers above the earth's atmosphere. Perhaps, that is why established players in the telecommunications market are still a little leery.

With more systems on the way, major telecom operators are maintaining a wait-and-see attitude. There are exceptions, however. One example is Telecom Italia which, through its subsidiary Tele spazio, is involved in the Astrolink project. Satellites for the first broadband system will be launched in 2002. The first subscribers will have access the following year, in 2003.

The first to go into operation will be Astrolink. Ericsson has already signed an agreement for delivery of switches and other components for the land-based system. About the same time, Spaceway and the American firm Isky will be offering broadband service from space. Calculations by an American institute show that between five and seven percent of subscribers will get their access via satellite once the broadband market matures in five or six years. In other words, a small yet significant portion of the market.

'If it catches on, it could become a big deal,' believes Rudi Omholt at New and Special Business Operations. It is estimated that the market will support between five and six operators of broadband satellite access. Those that are already underway - Astrolink, Isky, Spaceway and others - each have as their goal to recruit between one and two million subscribers. Millions of terminals It is on the terminal side where the big money is, according to Rudi Omholt. Terminals for broadband access via satellite are similar to MINI-LINK, Ericsson's radio link for point-to-point communications, but are aimed skyward. The output has to be greater since the distance is much farther, but the principle is the same.

When satellite terminals are introduced in 2003, they will carry a price tag of between USD 3,000 and 10,000, depending on data speeds and technical performance. When millions of new terminals are being introduced into the marketplace, there is money to be made. 'Astrolink, for example, expects to sign up around 1.2 million subscribers between 2003 and 2008,' says Ingmar Karlsson. 'Should Ericsson be chosen as their supplier, we could look forward to volumes of around 300,000 terminals per year over a five-year period. ' Traffic after five o'clock But if the market is really going to take off, the price of terminals must be reduced considerably. To start with, Astrolink and the other companies are focusing on the less price-sensitive business market.

However, if satellite access is really going to catch on, as operators hope and believe, then there has to be traffic over the network after five o'clock as well. For that to happen, there has to be a consumer market, which will require much lower priced terminals. 'Satellite operators have very aggressive target prices in mind for terminals, which is somewhat disadvantageous for Ericsson, compared with traditional suppliers,' says Rudi Omholt. 'Our strategy is to take advantage of our experiences and know-how from MINI-LINK and the telecom industry. Our strength lies in our reliability and quality and the fact that we are able to show operators an impressive production capacity and a global presence. ' Ericsson is following developments in the market for broadband access via satellite with interest, and is trying to put its finger on the desires of customers.

By offering terminals and trying to land its first contract, the company hopes to form a stable foundation for new operations. 'We will be setting serious requirements that one or more of the major telecom operators express an interest in the satellite market,' says Ingmar Karlsson..