VSAT and MSS Market Overview
ITU
CoE/ARB
Abdelfattah ABUQAYYAS
CoE/ARB Coordinator
abuqayyas@itu.int
ITU - BDT
1
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Topics
ITU
CoE/ARB
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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Global Satellite Communication
ITU
Commercial satellite communications are
CoE/ARB
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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Change in the Global
Satellite Telecommunications market
ITU Growth in overall demand for telecommunications driven by
CoE/ARB 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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Mobile Satellite Services
ITU
CoE/ARB
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
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Services
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Mobile Satellite Systems for Messaging
(Little LEOs).
ITU
CoE/ARB
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,
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computer and personal messaging
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Little LEO Market Segments
ITU
CoE/ARB Messaging 56%
Electric meter reading 28%
Asset tracking 12%
SCADA 2%
Maritime and aero 2%
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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Mobile Satellite Systems for Voice
( GEO, MEO and Big LEO)
ITU
CoE/ARB
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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
MSS for Internet and Multimedia
(Ka Satellite systems)
ITU
CoE/ARB
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
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systems are a sure thing.
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Future Broadband Satellite Systems
ITU The LEO constellation is likely to be used by:
CoE/ARB
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
10 Ellipso – High Elliptical
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
LEO, GEO Comparison
ITU
CoE/ARB
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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Mobile Satellite Services
2000 - 2005
ITU What are the market prospects – how many
CoE/ARB
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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Role of Satellites in the Internet:
ITU
Delivering the content to the user ―Pulling‖
CoE/ARB
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 networks—advanced corporate
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Networks
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Role of Satellites in the Internet Delivery
ITU
CoE/ARB
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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Broadband
Connections (in millions)
ITU
CoE/ARB
Type 2001 2002 2003 2004
Cable 6.1 8.5 10.1 13.9
DSL 4.1 6.4 9.2 12.3
Wireless 0.35 0.785 1.9 4.3
includes
Satellite)
Total 10.55 15.68 21.29 30.35
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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Broadband
Connections (in millions)
ITU
CoE/ARB
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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Delivering the content to the user “Pulling”
ITU Satellites already are playing an important role in carrying Internet
CoE/ARB 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
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variety of communications media.
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
“Pushing” internet content directly
to the edge of the Internet
ITU satellites have developed services called ―multicasting and caching‖
CoE/ARB 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 provider’s 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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Broadband internet access to the end user
“Last mile”
ITU This can be in the form of advanced VSAT networks
CoE/ARB
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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Global Internet Traffic Growth
ITU
CoE/ARB
20
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Remarks
ITU Satellite is one of the most efficient and cost-effective
means to broadcast to the Internet; Internet is perfect
CoE/ARB
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
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backbone congestion problem .
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
VSAT Trends and Markets
ITU
CoE/ARB
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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
VSAT and Competitive Pressure
ITU
CoE/ARB
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)
Doesn’t really address regions with developing
telecommunications infrastructure
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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Conclusions
ITU
CoE/ARB
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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Satellite Technology Trends
ITU Technological Developments.
CoE/ARB
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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Current Trends in Satellite Communications
ITU Bigger, heavier, GEO satellites with multiple roles.
CoE/ARB
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
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GPS
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Risk Factors and Challenges
ITU External Drivers for Satellite Boom
CoE/ARB
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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Future Needs and Market Trends
ITU Drastic need for more MSS allocations - demand will exceed
CoE/ARB
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.
28 But MSS telephony sector unlikely to grow significantly
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Policy and Regulatory issues
ITU Policy issues
CoE/ARB
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
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Spectrum
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Satellite Regulation
The Challenge: “…universal access is
ITU
CoE/ARB
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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Levels of Regulatory Obligations
ITU Satellite Operator Level
CoE/ARB
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
31 Regulations
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
The Role of ITU
ITU GMPCS
CoE/ARB
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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
GMPCS MoU
ITU
CoE/ARB 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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
POLICY AND REGULATORY FRAMEWORK
ITU Trends in the telecommunications world.
CoE/ARB 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..
34 OPEN SKIES IS AN IMPORTANT ISSUE!!!!
Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
Position of Developing Countries
ITU
CoE/ARB 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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
KEY DRIVERS FOR THE FUTURE
ITU
CoE/ARB
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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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003
VSAT and MSS Market Overview
ITU
CoE/ARB
Thank You
abdelfattah.abuqayyas@itu.int
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Workshop on VSAT and MSS Business Applications
Manama – Bahrain 08 – 10 December 2003