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ASMS-TF - Europa


									ASMS-TF          VISION       Date : 24 September 2001
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             The Vision of the
Advanced Satellite Mobile Systems Task Force

    ASMS-TF                                       VISION                                Date : 24 September 2001
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                                                   Table of Contents

1    INTRODUCTION.......................................................................................................................3

2    THE ADVANCED SATELLITE MOBILE SYSTEMS TASK FORCE .............................3


4    THE SHORT TERM VISION OF THE MARKET FOR ASMS ...........................................5

               SHORT TERM ...............................................................................................................6
               4.1.1       Extension of existing mobile-satellite systems..........................................................6
               4.1.2       Direct Mobile Broadcasting and Multicasting ...........................................................8
               4.1.3       Extension of wireless mobile terrestrial networks......................................................9


     4.3       USER TERMINALS.....................................................................................................12

     4.4       TRAFFIC AND TERMINAL COSTS .........................................................................13
               4.4.1       Traffic charges..................................................................................................... 13
               4.4.2       Factors affecting traffic costs ................................................................................ 14
               4.4.3       Terminal cost....................................................................................................... 14

     4.5       GEOGRAPHICAL COVERAGE ................................................................................15

5    LONGER TERM VISION .......................................................................................................15


ANNEX 1 STRUCTURE AND MEMBERS..............................................................................18

ANNEX 2 UMTS SERVICES AND APPLICATIONS..............................................................21

ANNEX 3 ABBREVIATIONS......................................................................................................22
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    Recent history has shown the tremendous impact that the development of terrestrial networks
    has had on the viability of satellite mobile systems. Within this context the Advanced Satellite
    Mobile Systems Task Force (ASMS -TF) was set up to devise the role of the satellite component
    of the future global mobile infrastructure. As an output of the ASMS -TF this document presents
    the first conclusions of the group regarding the role and positioning of satellite mobile systems for
    the next generation of networks offering services to mobile users.

    After a short presentation of the Task Force (its structure, members and goals), the Vision of the
    Task Force for the next generations of the Mobile Satellite Systems is presented.


    The Task Force on Advanced Satellite Mobile Systems is an independent, industry-led body,
    committed to the successful introduction and development of advanced (including 3G and
    beyond) satellite mobile communications systems and services.

    The Task Force was formed in March 2001, at the initiative of the EC and ESA. Having noted the
    disappointing uptake of start-up, "personal" satellite communications systems targeted at mass
    markets, the Task Force aims to build on earlier results generated under the 4th FP (Framework
    Programme) and on ongoing activities sponsored by ESA and the IST (Information Society and
    Technologies?) programme. In so doing, the Task Force intends to identify a co-ordinated view of
    the role that advanced mobile satellite communications systems will play in the future. Key items
    on the agenda of the Task Force
    are the achievement of significant growth from the use of satellite mobile systems, and the
    definition of future satellite mobile system requirements.

    The work of the Task Force is therefore concentrating on system and service strategies that take
    advantage of the unique and complementary service characteristics offered by satellite systems,
    such as wide-area coverage, and efficient broadcasting and multicasting. The Task Force is also
    examining the technological and commercial implications of the likely convergence of
    broadcasting and mobile systems, as well as moving towards closer, mutually beneficial
    interworking with terrestrial mobile networks. The Task Force considers that advice and support
    to standardisation organisations and regulatory bodies is a vital element of its work.

    European industry is a world leader in the manufacture and operation of satellite mobile systems,
    as well as the provision of satellite mobile services to end-users. The identification of a co-
    ordinated approach for advanced satellite mobile systems considered a prerequisite for further
    innovation and continued global success for the future.

    Objectives: The main objectives of the TASK FORCE are:

    •     To develop a vision for advanced satellite mobile systems and their role in future
          communication networks;
    •     To promote the growth of satellite mobile systems;
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    •     To identify business opportunities arising from convergence of satellite mobile systems with
          other networks;
    •     To develop a co-ordinated approach on regulatory aspects to facilitate market access,
          licensing and the availability of adequate spectrum;
    •     To support the co-ordination of on-going and future research and development efforts, and
          to provide inputs to EC, ESA and others in support of future satellite mobile development;
    •     To assess the markets for advanced satellite mobile systems, identify user requirements,
          and develop relevant business models;
    •     To identify the technological requirements for advanced satellite mobile systems, taking
          into account the convergence of satellite mobile and with other networks such as mobile
          cellular, packet data (internet, messaging), navigation and broadcasting;
    •     To identify the standards needed to ensure the development of advanced satellite mobile
          systems, and to facilitate the convergence with other networks;
    •     To provide a forum to consolidate the results of relevant EC and ESA sponsored projects,
          to identify common interests, and possible areas for co-operation.


    Members of the Task Force are organisations interested in actively supporting and promoting the
    Task Force's activities. New Members are accepted upon signature of the Task Force
    Memorandum of Understanding. Members include manufacturers, operators, service providers,
    research organisations, academic institutions and mobile industry specialists.
    Membership of the group is voluntary and any member can withdraw at any time by providing
    one-month's notice. There are no fees associated with membership.
    The structure of the Task Force, and its current membership are shown at Annex 1.


    In deriving a common vision for the next generation of mobile-satellite systems, the Task Force
    considers that a set of conditions has to be met in order to foster the commercial and financial
    success of the next generations of satellite mobile systems. These conditions are:

    •     Develop a credible business plan:
          The business plan should account for the required development period before entry into
          service, with varying conditions from initial concept to market entry;

    •     Be flexible:
          Alternative technologies (GSM - then GPRS, EDGE & UMTS -, DAB, DVB-T) will not stand
          still - both from the technical point of view, but also from a coverage and service point of
          view - whilst a new satellite systems are built and deployed

    •     Meet expectations:
          The services provided will have to be fully tested before being offered commercially. Users
          may be better acquainted with the offering of terrestrial networks, thus satellite networks
          should provide an acceptable level of quality of service and offer compatible services.

    •     Target suitable markets:
          The market assessment for a satellite system must be broadly-based, across a range of
          evolving user-types and related demand, applications and geographies.
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    •     Pay attention to user terminals:
          The appearance, physical characteristics, user interfaces, manufacturability and cost of the
          user terminal are important. A satellite capability may not necessarily make larger, heavier
          or more expensive terminals more acceptable.

    •     Capitalise on convergence opportunities:
          Careful attention must be paid to aspects regarding convergence with other networks, such
          as mobile cellular, packet data, navigation, and broadcasting. This should be assessed in
          all areas including services, network infrastructure and user terminals.

    •     Rely on standards:
          Open standards should be developed to allow the easiest market access (market base and
          customer acceptance). Re-use of terrestrial standards and efficient inter-working should be
          targeted to the maximum practical extent.

    •     Guarantee access to spectrum:
          Sufficient spectrum must be available to satellite mobile services for both present use and
          future growth. Global spectrum availability is crucial to the funding of ASMS systems. New
          spectrum allocations for ASMS systems will be needed.

    •     Foster licensing process:
          Licenses should be delivered as early as possible. The licensing process should be
          harmonized to the largest extent, including free and unrestricted circulation of the user
          terminals and harmonized spectrum allocations to each system.

    •     Mitigate technological risks:
          Proper R&T programs should be conducted in order to minimize technological risks during


    In this document, the short term corresponds to services which may be delivered from around

    To date, satellite mobile systems have been successful in a number of niche markets (see table
    below), but attempts to capture mass markets have met with varying degree of success. In
    considering the next generation of satellite mobile systems it is a key objective of the Task Force
    to develop service offerings for more mainstream markets, thereby delivering significant growth in
    numbers of satellite users, and in utilisation.

              Traditional niche markets for Mobile satellite systems are :
                    •   Maritime
                    •   Aeronautical
                    •   Land-based:
                               Trucking, logistics, fleet management.
                               Government & defence
                               Emergency & humanitarian
                               Utility maintenance and operations
                               Aid agencies
                               Mining & extraction
                               Oil & gas production
                               Rural & remote
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      The Task Force has identified three main market development opportunities for
      advanced satellite mobile systems:

      –       Extension of existing Mobile Satellite Services (MSS) towards larger capacity,
              higher end-user bit rates, lower equipment cost and lower traffic tariffs. These
              systems would initially target the existing maritime, aeronautical and vertical niche
              land mobile markets, and use these as a starting point for penetrating horizontal

      –       Development of Direct Mobile Multicasting & Broadcasting, addressing mainly
              the consumer market, as well specific corporate markets. These types of system
              would overlay the terrestrial cellular networks by implementing point-to-multi-point
              services component in a more efficient manner, and complement terrestrial digital
              broadcast networks by completing their geographical coverage

      –       Extension of the wireless mobile terrestrial networks: i.e. coverage extension,
              coverage completion, global roaming and rapid deployment. It is expected that in
              this market segment satellite mobile systems will require a much higher degree of
              integration with terrestrial infrastructures than for extensions of existing MSS.

      The above categorization derives from an attempt to classify the different roles for future
      satellite mobile systems within the roles identified for future general mobile
      communications. ASMS could play just one, or several of the roles itemized above, fully
      or partially. These three market opportunities are addressed in more detail in sections
      4.1.1 to 4.1.3 below.

      Future services and applications have been comprehensively addressed in UMTS Forum
      Report 13, and an outline is included in Annex 2. It is implicit from the complementary
      role of ASMS that identical (or very similar) services and applications should be

      4.1.1        Extension of existing mobile-satellite systems

                   This market is expected to be an evolutionary development of existing niche
                   MSS services - see table below. The systems may be global or regional and
                   operate with different levels of integration with terrestrial fixed and
                   mobile networks.

                   The market for short-term MSS services is already well established and
                   proven. Growth will come from incremental development of existing services
                   and market segments. Current user base is approximately 500,000 (including
                   all current mobile-satellite system users).
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Sector                             Services                          Comments
Services split into three areas:   •   Voice                         Including ISDN access
                                   •   Circuit switched data         Includes Internet access
1.   Passenger services;           •   Packet switched data          Including tracking applications
2.   Operational &                 •   Paging                        Fleet management
     administrative                •   Store and forward             Prioritised access
3.   Navigation and position       •   Selective broadcast
     reporting                     •   Distress & safety at sea

Services split into three areas:                                     Including ISDN access
                                   •   Voice                         Includes Internet access
1.   Passenger services;           •   Circuit switched data         Including tracking applications
2.   Operational &                 •   Packet switched data          Prioritised access
     administrative                •   Store and forward
3.   Air traffic control,          •   Distress & safety
     navigation and position

Land Based
Services split into three areas:
                                   •   Voice                         Including ISDN access
1.   Vehicles                      •   Circuit switched data         Includes Internet access
2.   Personal communications       •   Packet Switched data          Including tracking applications
3.   Specialised (e.g.             •   Store and forward
     remotelocation, bespoke
     high speed data).

                       Extending the existing MSS markets and systems means an evolutionary
                       approach in that existing technical as well as commercial infrastructure could
                       be used as building blocks to achieve a low-risk and low-cost path to new
                       growth. On the market side, the aim will be to develop from today’s base of
                       traditional MSS vertical markets as the primary goal while also extending
                       penetration into horizontal markets. This could be made possible by provision
                       of high quality and high capability services, at steadily reduced prices (for user
                       terminals as well as traffic charges) enabled by technological advances
                       in satellite capabilities as well as user and network equipment.

                       As the mainstream mass-market is not the prime target for this approach, the
                       requirement for a dual-mode and T-UMTS-sized terminal may not be
                       essential. Terminal developments will be optimized towards satellite utilisation
                       and a variety of terminal sizes is envisaged. Typically, the tendency will be
                       towards the larger terminal types (e.g. palmtop, laptop) with directive
                       antennas in order to make efficient use of the satellite resources and
                       thereby achieving lower traffic charges and/or higher data-rates.
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           Similarly, terrestrial system integration may not be an essential requirement
           on the network side. The network would provide its own intra-network mobility
           management, be addressable from other networks by a specific network
           code: the technical interfacing to other networks would then be limited to
           interconnections. This approach has important advantages such as flexibility
           in deploying, operating and maintaining the system as well as independence
           from constraints imposed by the integration with cellular networks (eg.
           International roaming costs). It is also important to note that even self-standing
           networks can make great benefits of convergence without any network
           integration; examples are sharing of voice-mail boxes, IN-based value added
           services, common bill, common customer support as well as a variety of other
           subscription related features.

           Although the terminals may not be as compact as T-UMTS devices, and the
           networks typically will be self-standing, the services will be aligned as close as
           possible to the offerings in the terrestrial world, such as T-UMTS and GPRS.
           Voice will also be a key service and needs to be supported. This should make
           these systems capable of taking a complementary role to provide T-UMTS like
           services in those areas where T-UMTS/GPRS is not developed. See section
           4.2 for a more detailed list of the complementary roles the satellites can play.

   4.1.2   Direct Mobile Broadcasting and Multicasting

           By virtue of their wide-coverage area, satellite mobile systems can be
           particularly effective when used to provide two basic categories of service:
           broadcast and multicast. Both these service categories are described below.
           It is important to note that in principle both multicast and the broadcast
           services could be transported over the same satellite communications carrier,
           effectively and flexibly shared among the two types of services.


           The market for satellite broadcast services (often generically referred to as S-
           DAB or S-DVB, includes streaming services such as digital audio services
           (approaching CD quality), low-rate video (e.g. MPEG-4), and a wide range of
           multi-media and telematics services for the portable, vehicular, home and
           fixed markets. Data rates of typically up to 1.2 Mbit/s can be considered for a
           single service, though such high data rates will have to be traded off against
           the overall payload capacity of the satellite. In Europe, the potential market
           size is several high tens of millions of users for such services. S-DAB and S-
           DVB systems would typically be intended to complement and supplement the
           digital terrestrial broadcast infrastructure, thus enabling ubiquitous coverage.

           From the standpoint of satellite broadcast services, various technologies are
           in principle feasible including:

           •     those already used by various operating geostationary and elliptical
                 satellite (e.g. S-DRS / S-DAB) systems;
           •     an evolution of the terrestrial Eureka-147 standard optimized /
                 modernized for the satellite delivery mode;
           •     other techniques that allow more effective re-use of widely available
                 terminal technologies (e.g. UMTS) .
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           It is important to note that, by their integration, satellite and terrestrial digital
           broadcast infrastructures will achieve a significant level of cross-fertilization.
           The terrestrial component need not be designed for extensive penetration, the
           uncovered regions being allocated to satellites, thereby avoiding the need for
           very high transmission link margins. An opportunity for the deployment of a
           digital integrated broadcast infrastructure is offered by the fact that
           no mobile digital broadcast service yet exists in Europe on a large scale; It is
           expected that dual-mode receivers will be required, to enable customers to
           seamlessly receive digital radio and video in urban, sub-urban and rural


           Here we use the term "multicast" to indicate a more limited form of
           broadcasting, though still featuring a point-to-multipoint topology. Multicasting
           is to be regarded as a complement to terrestrial UMTS and typically refers to
           non-real time services, which allows retransmissions to provide a good quality
           of service via satellite. The files are stored in the local terminal memory and
           the user can browse them at any time, after their full and correct reception has
           been declared (push mode).Multicast services may offer a return channel from
           the user to the network. As already mentioned, a satellite mobile multicast
           system is seen as a high-value complement to T-UMTS, relieving the
           terrestrial network from having to retransmit the same content across multiple
           cells, thus sparing precious bandwidth. Satellite multicasting should be
           regarded as an integral part of UMTS therefore the target market is horizontal
           for developed regions.

           Integration with UMTS, the global mobile architecture for the next 20 years,
           will pave the way to a potentially huge market for the satellite component
           achieving advantages similar to those already being achieved with the
           utilization of satellites in fixed multimedia networks.
           Another important issue is the continuous development and convergence of
           technologies, with particular regard to mass storage devices, that will progress
           rapidly in the coming years. These technologies should provide consumers
           with a wide range of reliable and powerful storage devices. Important
           opportunities should emerge for satellite mobile systems to complement
           UMTS efficiently, by the continuous multicasting of multimedia content to
           mobile users.. By relying on full UMTS standards, this Direct to User Content
           Distribution system would remove asymmetric loading from UMTS networks,
           thus allowing far more point-to-point equivalent capacity at lower overall
           investment cost.

           By deploying multicast satellite systems along with the terrestrial mobile
           networks, the total infrastructure cost could be reduced, thus allowing data
           distribution services to be provided at a lower cost. A dual mode (UMTS +
           satellite) terminal would be required, with minimum hardware changes and
           additions with respect to mainstream UMTS terminals.

   4.1.3   Extension of wireless mobile terrestrial networks

           With the aim of extending the general reach of 3G mobile services, the
           need will exist for a proper satellite-UMTS component able to support
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      all kinds of UMTS services, including the point-to-point services such
      as telephony, Web browsing, file transfer. Such component, that we
      label as “S-UMTS”, should ideally be conceived as fully integrated with
      the UMTS access networks, while the UMTS core networks should be
      shared among the terrestrial and the satellite components. This is one
      of the main difference with respect to the case of evolution of MSSs
      (see Sect. 4.1.1), which are usually regarded as mostly stand-alone
      systems directly interfaced with the fixed network. Integration has
      several implications, the most important ones being those directly
      perceived by users (e.g. a common services subset, a unique mobile
      dialling number and IP address, the use of highly-integrated dual-mode
      terrestrial / satellite user terminal), but also those regarding operators
      can be significant as already stated above (e.g. re-use of existing
      network infrastructures).

      There are two main roles that S-UMTS can play in synergy with the
      terrestrial UMTS component:

      1)    Complementing terrestrial services –
            This role generally consists in extending the availability of
            terrestrial services in low-density traffic areas, (for example
            where GPRS/T-UMTS deployment is still non-adequate or
            unavailable). A number of detailed cases where satellites can
            effectively complement terrestrial networks have been identified:
            these are shown in section 4.2.

      2)    Alternative to terrestrial services -
            This role consists in offering services, probably mainly to the
            vertical market, where outdoor coverage - anywhere anytime - is
            crucial but indoor coverage is not required. Possible examples
            are a bearer service for vehicles and various sorts of outdoor
            equipment, or the provision of critical services at bit-rates higher
            than that offered by GPRS, in areas served by GPRS but not yet
            by T-UMTS. S-UMTS may not be regarded as a competitor to T-
            GPRS/T-UMTS in general. Although this role may appear to
            somewhat overlap that of MSSs, there could be differences in
            both terminal implementations (UMTS-compatible against ad-
            hoc) and services (the UMTS set against specialized services
            tailored for professional use). It should be noted that both roles
            can be simultaneously undertaken by the same satellite system,
            which can well be designed such as to support diversified
            applications, with very flexible resource-utilisation.
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      The following represent some of the possible business opportunities for all three
      categories of satellite mobile systems to complement terrestrial networks :

      •     Coverage extension.
            In virtue of its wide-area coverage S-UMTS can extend T-UMTS services to
            unserved locations, especially to places hardly coverable by other means (e.g. on
            board aircraft or ships), or remote and depressed areas. Deploying S-UMTS
            services in scarcely populated communities or in poorer areas of the world implies
            that some services may not be strictly personal, and may then be supported by
            community-shared fixed terminals.

      •     Rapid deployment.
            In areas where T-UMTS is anyway going to be deployed, S-UMTS can anticipate
            the service availability. S-UMTS traffic is anyway expected to decrease in these
            areas, with the progress of T-UMTS.

      •     Disaster-proof availability.
            Throughout the world, there are crisis zones lacking terrestrial communications
            because networks have been damaged or destroyed or, in some cases, have not
            yet been built. Regardless of the reasons, S-UMTS can provide a back-up service.

      More specifically, the following represent additional business opportunities for extensions
      to mobile terrestrial networks (cf 4.1.3) :

      •     Coverage completion.
            S-UMTS may act as an “umbrella cell” in a hierarchical cell structure, covering T-
            UMTS network gaps. A typical situation might be that part of an area has T-UMTS
            coverage, and S-UMTS is used to cover the complete area, including the remote
            portions where T-UMTS is not financially viable. By using a local repeater, S-UMTS
            also could provide indoor coverage. A home network operator can so achieve a
            complete coverage of its regional market.

      •     Global roaming.
            S-UMTS can extend T-UMTS operators coverage to areas not directly reached by
            the operator’s facilities. This will permit users to communicate in areas where
            incompatible systems exist. Even if the local network is compatible and roaming
            agreement are in force, S-UMTS can permit avoiding the roaming charges
            (provided these are lower than the additional cost of the via-satellite call).

      •     Dynamic traffic management.
            S-UMTS can relieve permanent or temporary T-UMTS traffic congestion.
            Communications traffic will peak at certain times in some locations. Furthermore
            traffic will be more business-related during the day and more family-oriented in the
            evening or during weekends, with different services needs in terms of capacity and
            symmetry. The dynamic capacity allocation shall also take into account location
            changes, for example due to daily commuting.
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      The Task Force has made an initial definition of the main classes of user terminal under
      consideration. The Table below describes the terminal types, and relates them to the
      main services they would be used for. The type of usage as well as the possible service
      delivery through the T-UMTS networks has been also identified.

      Type of terminals       Service examples                              Usage
      Handheld, mass-         Video/audio multicast ( video on a 2          Nomadic or while on
      market                  inches screen; average refresh rate: 1        the move (if hosted in
                              day, total library volume: 30 minutes per     vehicular cradle)
                              profile ).
                              Conversational services only in terrestrial

      Portable : Palmtop      Information retrieval services & data         Nomadic
      sized                   gathering (E-mail, Web services, etc): 64
                              kbps peak bit rate return channel, 200
                              kbps peak bit rate forward channel.
                              Video/audio multicasting non-real-time
                              (see handheld).
                              Video/audio multicasting (possibly with a
                              return channel) and broadcasting (200
                              Video/audio conversational services,
                              symmetric data rates: 64 kbps.

      Portable: Laptop        Information retrieval services & gathering    Nomadic
      sized                   (E-mail, Web services, etc): 144 kbps
                              peak bit rate return channel, 384 kbps
                              peak bit rate forward channel.
                              Video/audio real-time broadcasting (384
                              Video/audio conversational services,
                              symmetric data rates: 144 kbps.
      Land-based              Information retrieval services & gathering    Nomadic
      terminal                (E-mail, Web services, etc): 384 kbps
                              peak bit rate return channel, 384 kbps
                              peak bit rate forward channel.
                              Video/audio real-time broadcasting (384
                              Video/audio conversational services,
                              symmetric data rates: 384 kbps.
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      Vehicular business   Crew: Operational services (telemetry,       While on the move
      terminal             monitoring, security, etc.): 64 kbps
                           forward, 9.6 kbps return.
                           Passenger: Information retrieval
                           services & gathering (E-mail, Web
                           services, etc): 384 kbps bi-directional
                           connections aggregated per channel.
                           Video/audio real-time broadcasting (384
                           kbps per channel).
                           Video/audio conversational services,
                           symmetric data rates: 384 kbps in both
                           directions per channel.
      Maritime terminal    Crew: Operational services (telemetry,       While on the move
                           monitoring, security, etc.): 384 kbps
                           Passenger: Information retrieval
                           services & gathering (E-mail, Web
                           services, etc): 384 kbps bi-directional
                           connections aggregated per channel.
                           Video/audio real-time broadcasting (384
                           kbps per channel).
                           Video/audio conversational services,
                           symmetric data rates: 384 kbps in both
                           directions per channel.
      Aeronautical         Crew: Operational services (telemetry,       While on the move
      terminal             monitoring, security, etc.): 384 kbps
                           Passenger: Information retrieval
                           services & gathering (E-mail, Web
                           services, etc): 384 kbps bi-directional
                           connections aggregated per channel.
                           Video/audio real-time broadcasting (384
                           kbps per channel).
                           Video/audio conversational services,
                           symmetric data rates: 384 kbps in both
                           directions per channel.


      4.4.1    Traffic charges

               Traffic charges are expected to be a key factor for the commercial success of
               any ASMS service. Traffic charges are determined by the market and will
               depend heavily on various market related parameters such as level of
               competition, the users price sensitivity, macro economic conditions and so
               forth. The charges for future satellite services will be benchmarked against the
               charges for comparable terrestrial services, if available,, and will appear
               reasonable taking into account the value of the service offered and
               corresponding terrestrial charges.
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   4.4.2   Factors affecting traffic costs

           However, the costs of delivering service is also a highly relevant factor in that
           it provides a lower bound for the traffic tariffs that can be offered by service
           providers. In the following we ignore the demand side aspects, and focus on
           some key factors affecting the cost of providing service.

           •    Satellite system investment cost: initial costs to test, debug and certify the
                access protocols, procure satellites, launch, ground infrastructure,
                insurance, etc.
           •    Satellite system maintenance costs: running costs due to satellite
                operations ground infrastructure maintenance and upgrades etc.
           •    Satellite operational life time : determining satellite replacement
                frequency and costs
           •    Satellite capabilities: high number of small-size and high-gain spots,
                when compatible with service to be provided, allows better frequency
                reuse and reduced satellite power consumption, thus increasing satellite
                capacity for given mass and power consumption, and hence yielding
                economies of scale
           •    Satellite resource management efficiency : the optimization of all link
                budgets elements are crucially important in order to make the most out of
                the satellites limited resources (bandwidth, power).
           •    Terminal antenna : the larger terminal antenna size and gain, the less
                satellite power consumption and better frequency reuse, in the end
                resulting in reduced traffic costs.
           •    Service data rates : the data rates translate into bandwidth requirements,
                which drives the traffic costs accordingly.
           •    Multiple access scheme and switching techniques : these are decisive
                factors in that they determine how and with which efficiency the
                resources are shared among the users. Packet-switching are considered
                having inherent advantages over circuit switching when it comes to
                exploiting asymmetry and burstiness in traffic patterns.
           •    Information delivery method : In the case of multicast and broadcast,
                where many users receive the same information content over a common
                channel, the cost per user is reduced accordingly. However it is to be
                expected that the users’ willingness to pay would be lower than for point-
                to-point services, as point-to-point services are more suited to offering
                personalised and specialised content as well as interactivity.

   4.4.3   Terminal cost

           The single most important factor affecting the cost of user terminals will be
           production volumes. As with traffic charges, the Task Force intends that future
           satellite user terminals, single and multi-mode, can be produced at costs
           which enable attractive, reasonably - priced functionality packages to be
           offered to end users.
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            By their nature satellite systems provide homogeneous coverage over very wide areas.
            The Task Force sees this as one of the significant advantages offered by future advanced
            mobile systems. The Task Force is therefore basing its work on a global perspective, with
            the aim of delivering a model for worldwide coverage. At the same time it recognises that
            for some sectors - typically in the land-based category - market demand, and service
            requirements will differ significantly from region to region. These considerations are being
            factored into Task Force work on system requirements, and underline the need for
            flexible, versatile multi-purpose satellite designs.

    The long term vision for ASMS (i.e. services which can be delivered from around and after 2010)
    is largely determined by the following factors:

    •      The communications requirements/demands of new and sophisticated multimedia

           o    User expectations are for rich-content services to increasingly smaller and lighter
                user terminal devices.
           o    This trend is likely to continue, and therefore place increasing demands on
                communications systems, including satellite mobile systems.

    •      The expectation of users as conditioned by services available from alternative service
           delivery mechanisms (e.g. Cable, cellular);

           o    Terrestrial broadband systems are delivering data rates up to 2Mbit/s to individual
                users, while mobile cellular systems will offer the same data rates in certain high
                density areas.
           o    Users would therefore expect similar data rates from satellite mobile systems,
                delivered to user terminals of progressively smaller size and mass.

    •      The convergence and blurring of distinction between different types of networks and

            o    It is already difficult to distinguish a broadcast system (with a return link for
                 acknowledgement or requests) from a communications system with asymmetric
            o    This trend will continue to the point where broadcast and telecommunications
                 systems will become indistinguishable
            o    Furthermore, navigation and position determination capability will be incorporated
                 into telecommunications systems, as an added value service.
            o    It can be foreseen therefore that there would be complete convergence of
                 telecommunications and broadcast systems, and an increased integration with
                 navigations systems.

    •      The exploitation of the inherent advantages of satellites to provide wide area coverage at
           low cost, and to deliver broadcast and multicast content in a efficient manner.
    ASMS-TF                             VISION                      Date : 24 September 2001
                                                                    Page : 16 of 22

            o    There is a strong likelihood that satellite systems will be required to augment the
                 coverage of future mobile terrestrial networks, given the cost effectiveness of
                 satellites to service thin-route and wide area markets.
            o    An effective form of broadcast and selective broadcast via satellite will be developed,
                 to overcome the inefficiencies of current IP broadcast techniques
            o    Projections of 3G business*: by 2010, total 3G services provider-retained worldwide
                 revenues from all 3G services are forecast to reach $322 billion; by 2010, the
                 average 3G subscriber will spend around $30 per month on 3G data services; by
                 2010, with only 28% penetration into the worldwide mobile base, the additional
                 revenue from 3G data services, will add $9 per month to total worldwide cellular
                 average revenue per user (ARPU). Whilst ASMS systems, in providing
                 complementary and extension services will achieve only a small percentage of
                 these numbers, this will still be a very significant and attractive level of business for
                 the satellite industry.
    *Report No. 13 The UMTS Third Generation Market – Phase II: Structuring the Service Revenue
    Opportunities UMTS Forum April 2001


    To enable the successful introduction of advanced satellite mobile systems, the impact of a
    number of regulatory issues on the commercial vision and the technological possibilities has to
    be addressed. The removal of regulatory barriers will facilitate the commercial success of ASMS
    projects. For the future, the Task Force has a general aim of helping to achieve a significant de-
    regulation of satellite services, the removal of fundamental barriers to the provision and use of
    satellites, and the implementation of liberalisation measures to open up national markets for the
    competitive provision of ASMS services. As one objective, the TF plans to gain its own direct
    representation in CEPT and other appropriate regulatory bodies.

    The Task Force has set itself a number of goals in order to facilitate market access for, and the
    licensing of advanced satellite mobile systems:

    •     Obtaining cooperation among interested players in order to follow a coordinated approach
          to solve regulatory hurdles and to facilitate market access and licensing;
    •     Achieving agreement among interested players to ensure the availability of adequate
          spectrum for advanced satellite mobile systems;
    •     Building cooperation to facilitate the development of terminal and standards supporting
          both terrestrial and satellite requirements.

    To achieve these goals, the following actions will be undertaken:


    •     Fostering licensing processes which eliminate he need to obtain licenses and to follow
          different procedures in each country. Initiatives like One Stop Shopping should be
          supported and updated in order to include mobile services.
    •     Ensuring that administrative fees and annual fees, derived from the licensing process, are
          reasonable, recognise the multinational character of the satellite systems, and do not deter
ASMS-TF                            VISION                     Date : 24 September 2001
                                                              Page : 17 of 22

•     Ensuring reasonable numbering, addressing capabilities and associated requirements for
      ASMS systems (i.e. legal interception, interconnection).


•     Cooperating to maintain the current allocations to the MSS and BSS services.
•     Ensuring the availability of additional spectrum to guarantee future growth of the ASMS
      services in order to satisfy the expected customer demand, through common contributions
      to WRC preparatory bodies, NRAs, CEPT, EC, ITU.

Standards and free circulation:

•     Fostering the development of suitable terminal standards according to market
•     Ensuring that national or regional regulations (i.e. R&TTE Directive) do not impose
      unnecessary constraints to facilitate the operation of innovative MSS and BSS services.
•     Ensuring that National and Regional regulations ensure free circulation of terminals.
•     Facilitating the adoption of mutual recognition of standards and terminal certification among
•     Ensuring that regulatory requirements are well understood by research and development
      bodies and planners involved in the MSS/BSS sectors.
 ASMS-TF                         VISION                      Date : 24 September 2001
                                                             Page : 18 of 22


        The Task Force is an independent body which structure, rules and objectives are sealed
        through a Memorandum of Understanding (MoU)

        The Task Force is organized as follows:

        •     A Steering Panel, in charge of the coordination of the activities of the Task Force
              (as well as maintaining the statutes of the Task Force), advising public authorities
              (for instance regarding regulatory matters), promoting the outcomes of the Task
              Force and liaising with other Fora, etc.;

        •     A Commercial Group (CG), that is tasked to create a common vision of future
              satellite mobile communications and to identify the role of satellites in the broader
              wireless networks of the third and fourth generation. It shall keep under review
              developments in the wireless communications and broadcasting market, both
              commercial and technological, with a view to identifying, at the earliest possible
              moment, the need for new co-operation;

        •     A Technical Group (TG), that deals with system architectures, RESEARCH
              AND DEVELOPMENT requirements, the assessment of spectrum requirements,
              the development of open standards, and compatibility and interoperability with
              the terrestrial networks.

        •     A Regulatory Group (RG) which deals with all regulatory issues relating to
              future satellite mobile communication, notably access to spectrum, licensing
              conditions and market access for satellite services.

        Three classes of actors are defined within the Task Force:

        •     Advisors:
              the Advisor status may be granted by the Steering Panel to non-profit national or
              international organizations that are intended to be recipients of the
              Recommendations elaborated by the Task Force, in particular in the field of
              regulation and RESEARCH AND DEVELOPMENT . The European Space
              Agency (ESA) and the European Commission (EC) are advisors to the TASK

        •     Full Members:
              the MoU may be signed by an entity/administration, a group of entities or
              European organizations who commit themselves to the purposes of this MoU and
              to actively contributing to the work of at least one of the Groups.

        •     Observers:
              Observer status may be granted by decision of the Steering Panel to any legal
              person, company or entity on the basis of mutual reciprocity. Observers have the
              right to attend the meetings of the Steering Panel, with the right to speak but not
              the right to approve or reject ASMS Task-Force decisions.

        By September 2001, the following organizations had officially joined the TASK FORCE
        as Full members: (N.B. This list is still subject to final verification)
ASMS-TF                  VISION                 Date : 24 September 2001
                                                Page : 19 of 22

                        SEPTEMBER 2001


     Alcatel Bell Space N.V.

     Alcatel Space Industries

     Alenia Spazio SpA

     Ascom Systec AG

     Astrium S.A.

     Astrium GmbH

     DLR (Institute of Communications & Navigation)

     ESYS plc

     Fokker Space B.V.

     France Telecom R&D

     Global Radio S.A.

     Hughes Network Systems


     Indra Espacio

     Inmarsat Limited


     Laben S.p.A.

     MAGNA MI Developments Austria AG & Co KG

     Nera Satcom

     Norwegian Centre for Telemedicine

     QinetiQ Ltd.

     Radiocommunications Agency (UK)


     Space Engineering SpA

     Telecom Italia Lab S.p.A.

     Teledesic Communications Spain, S.L.
ASMS-TF                    VISION                 Date : 24 September 2001
                                                  Page : 20 of 22

         Telenor Broadband

         Telespazio SpA

         THRANE & THRANE

         Thuraya Satellite Telecommunications Company

         University of Bologna

         University of Surrey (UniS)

   TOTAL NUMBER OF SIGNATORIES:                32
   European Space Agency
   European Commission
   ASMS-TF                             VISION                          Date : 24 September 2001
                                                                       Page : 21 of 22


                                                                                          Market Segment
    Service Name                           Service Description

Mobile Intranet/     A business 3G service that provides secure mobile access to          Business
Extranet Access      corporate Local Area Networks (LANs), Virtual Private
                     Networks (VPNs), and the Internet.
Mobile Internet      A 3G service that offers mobile access to full fixed ISP             Consumer
Access               services with near-wireline transmission quality and
                     functionality. It includes full Web access to the Internet as well
                     as file transfer, email, and streaming video/audio capability.

Customised           A consumer 3G service that provides device-independent               Consumer
Infotainment         access to personalised content anywhere, anytime via
                     structured-access mechanisms based on mobile portals.

Multimedia           A consumer 3G service, that offers non-real-time, multimedia         Consumer
Messaging Service    messaging with always-on capabilities allowing the provision
                     of instant messaging. Targeted at closed user groups that can
                     be services provider- or user-defined.

Multimedia           A business 3G service, that offers non-real-time, multimedia         Business
Messaging Service    messaging with always-on capabilities, personalisation, and
(Business)           user-to-user networking and allows the provision of instant
                     messaging. Targeted at closed business
                     communities that can be services provider or customer
Location-Based       A business and consumer 3G service that enables users                Consumer and
Services             to find other people, vehicles, resources, services or               Business
                     machines. It also enables others to find users, as well as
                     enabling users
                     to identify their own location via terminal or vehicle
Rich Voice and       A 3G service that is real-time and two-way. It provides              Consumer and
Simple Voice         advanced voice capabilities (such as voice over IP (VoIP),           Business
                     voice-activated net access, and Web-initiated voice calls),
                     while still offering traditional mobile voice features (such as
                     operator services, directory assistance and roaming). As the
                     service matures, it will include mobile videophone and
                     multimedia communications.


Report No. 13 The UMTS Third Generation Market – Phase II: Structuring the Service Revenue
Opportunities UMTS Forum April 2001
     ASMS-TF                  VISION                     Date : 24 September 2001
                                                         Page : 22 of 22


ASMS-TF       The Advanced Satellite Mobile Systems Task Force

BSS           Broadcasting Satellite Service

CEPT          Conference of European Posts and Telecommunications Administrations

CG            The Commercial Group of the ASMS-TF

DAB           Digital Audio Broadcasting

DVB-T         Digital Video Broadcasting - Terrestrial

EC            European Commission

GSM           Global Standard for Mobile Communications

ISDN          Integrated Services Digital Network

LAN           Local Area Network

MoU           Memorandum of Understanding

MSS           Mobile Satellite Service

NRA           National Regulatory Authority

S-UMTS        Satellite - Universal Mobile Telecommunications System

TG            The Technical Group of the ASMS-TF

T-UMTS        Terrestrial - Universal Mobile Telecommunications System

UMTS          Universal Mobile Telecommunications System

WRC           World Radiocommunication Conference

WWW           World Wide Web

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