Broadband via Satellite: Positioning and Requirements · // global satellite network solutions/ Please insert text by "View / Header-Footer" // // February 17, 2004 / page 16 // Broadband

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Broadband via Satellite: Positioning and Requirements

Dr. Bernhard Neumeyer

"Digital Divide and Satellite: Chances, Difficulties and Actions”, DLR, February 11th, 2004

// global satellite network solutions / Please insert text by "View / Header-Footer" // // February 17, 2004 / page 2 //

Broadband via Satellite:Positioning and

RequirementsTable of Content

1. Understanding of Digital Divide

2. Political Situation, Public Programs: EU, ESA, France, Germany

3. Requirements vs. Status Quo Satellite Communication

4. Future Position of Satellite Communication Networks: Chances & Risks

5. Position of Satellite Operators

6. Ways to use the chances for Satcom

7. Conclusion



Requirements1. Understanding of Digital Divide

Digital Divide: Separation into two classes of communities:

■ Communities, households with the possibility to get Broadband Access■ Communities, households without possibility to get Broadband Access

Strong contradiction to initial target of an equally interconnected information society!

Rough quantity assumptions:

■ In developed countries about 10%-20% of the households are affected by the Digital Divide■ In the acceeding countries EUCC-10 the percentage of household affected by

the Digital Divide is even higher!



Requirements1. Understanding of Digital Divide

They understood - do we?



Requirements2. Political Situation, Public Programs: EU, ESA, F, D

EU:

ESA: Space-based solutions for digital equality The European Space Agency and the European Commission have decided to give jointconsideration to the use of space-based technologies to help bridge 'the digital divide'. An initial action plan has been put in place to define society's needs and point to potentialspace-based answers.

Initial Step: ITT AO/1-4579/03/NL/US: Digital Divide: The Satellite Offer




France:On January, 22nd, 2004, the french senate (!) organized a colloquium together with ESA:Collectivités territoriales et désenclavement numérique: la solution satellite?

Major results:

■ The french local and national authorities are aware of the consequences to be affectedby the Digital Divide

■ Several field trials are in place, most of them based on Satcom■ Satcom, as is, is too expensive■ Position of representant of ESOA = Organisation of Satellite Operators: Satcom has

deficiancies, but is better than nothing !?■ The industry is prepared to increase the efficiency of satcom■ French Minister of Technology provided a positive outlook for Satcom and announced a

national 200 M€ program, thereof 100 M€ national money and 100 M€ EU money!




Germany:

■ Implemetation of Arbeitsgruppe Telekom: German satcom industry, consultingrole of DLR

■ German industry positioned itself to play a leading role in the deployment of asatcom network to bridge the Digital Divide.

■ German consortium submitted proposal to ESA ITT Digital Divide: The Satellite Offer..:OHB, ND SatCom, Telesat, SatSpeed, IABG, VCS, TESAT.

■ DLR Workshop today: Creation of awareness:- General Importance for Satcom business- Creation of awareness at government: BMBF, BMWA- Discussion and hopefully definition of joint industrial/political strategy



Requirements


Status Quo Satellite Communication: Network Bandwidth requirement forSerious Broadband Service:

Avg datarate/session: 512 kbpsCongestion ratio: 1/40Peak Load: 100%Bandwidth Efficiency: 1bps/HzTransponder Bandwidth: 36 MHz

2820 Subscriber/Transponder

@ 3,7 M€/Transponder/year:109 €/subscriber/month only for transponder!!

Status Quo Satcom!



Requirements


Status Quo Satellite Communication: End User Equipment

DSLModem

CableModem

SatComhybridTerminal

SatcomBidirectionalTerminal

Installationeffort

low low high very high

Size small small large very large

MarketAcceptance

high medium low very low

Cost low low low high

Terminal cost/price not key parameter: Terminal cost/price is mostly driven by quantities!Quantities will be regulated by the market, if a suitable network exists, which allows theoperation with terminals accepted by the market. Example: GSM!

To support the procurement of terminals by the EUwill not create a competitive satcom network!

Key parameters



Requirements


Status Quo Satellite Communication: Cost to end user/month

DSL € 56,7 Two Way Satellite € 301



Requirements


Status Quo Satellite Communication: Cost to end user/month

Two Way Satellite € 301

Siginificant Reduction

CPE Sharing: TWO-Way Satellite + WIFIWith unchanged service quality for each enduser

the cost for satellite bandwidth cannot be reduced!Wrong assumptionin ESA study!



Requirements


Requirements Network I

Broadband will be used: 76% of applications are in contradiction to „fair use“limitations of current Satcom based services.

A Unicast optimized and Multicast enabled Satcom Network is essential!



Requirements


Requirements Network II and Potential Solutions

Requirement Potential Solution

Reduction of unicasttransmission cost/MByte

Increase of unicast capacity per satellite withsmall spotbeams and frequency reuse

Improvement of air interface efficiency

Reduction of investment barrierfor satellite operator

Scalable satellite system Support of technology development Support to deploy model network

Reduction of investment barrierfor Service Provider

Low cost hubstation Low legal and regulatory barriers, e.g.

terminal blanket license

Network features for acceptableterminals

Ka-Band for small terminals Low S/(N+I) requirements on air interface Automatic line up/log in Terminal blanket license



Requirements


Requirements Terminals and Potential SolutionsRequirement Potential Solution

Small size of preferably planarOutDoor Unit:: Max. 30x30 cm

Ka/Ka Terminals Low transmission power High Transponder receive G/T Extensive coding in both directions Adaptive Codulation

Easy installation Automatic satellite search Automatic pointing adjustment Terminal blanket license Single cable or better wireless connection

between IDU and ODULow cost @ high quantities Low cost manufacturing process

Design taking into accoount high quantityproduction

Open standard for unicastnetworks

DVB-S2 DVB-RCS 2 Docsis via Sat



Requirements

4. Future Position of Satellite Communication Networks: Chances & Risks

Prospects: Bridging the Digital Divide will be one of the most important issues on the political agenda, worldwide. The bridging will mostly be realised within the next 5 years, driven by a substantial public support.

Chances for Satcom: Satcom is the ideal means to bridge the Divide fast and complete. To realize that, Satcom has to prove the capability to provide a competitive unicast access network and competitive end user equipment. This is technically possible, but must be commercially supported. At our competitors such developments are also supported by military or funded commercial projects. Digital Divide opens a market opportunity for Satcom, which is in terms of bandwidth requirements by far bigger than the Broadcast business!

Risks for Satcom: Wherever the gap of the Digital Divide is closed by terrestrial networks and no competitive satcom network can be offered, the market for any type ofsatcom networks is jeopardized. Terrestrial Broadband networks are even a competition for satcom Broadcast networks!



Requirements5. Position of Satellite Operators

■ Satellite operators did significant investments in bidirectional systems duringthe „internet bubble“ period.

■ All systems are based on Broadcast networks, in some cases with Ka-Band extension for return traffic.

■ The role of the satellite operators is still unclear: Capacity provider, network operatoror even service provider.

■ The Satcom Broadband access business did not materialize.Reason from SatOp point of view: Terminals are too expensive.Real reason: Neither the Satcom network nor the sales/marketing structures nor the strategy of most of the satellite operators are prepared for a powerful entry into theBroadband market.

■ The more and more shorttermed and investor driven business policy forbids investments into a new network technology with mid termed business prospects.



Requirements5. Position of Satellite Operators

■ Satellite operators are aware of the long term risk caused by the reduction of theanalogue traffic

■ Mainly based on the past experiences satellite operators are not willing and not able to take the complete risk of an investment into a new network.

Are the established Satellite Operators positioned for the deployment of a Satcom Network bridging the

Digital Divide?



Requirements6. Ways to use the chances for Satcom

DDSO offer of German consortium

■ Spotbeam Structure: About 40 Spots over Europe■ Spotbeams with high EIRP and G/T: Small terminals■ Risk reduction: Transparent IP Booster■ Risk reduction: Scalable adaption to B/W

requirements by cluster■ Bandwidth and link Budget efficiency:

Optional Sky Router with optical ISL.■ Adaption to short innovation cycles: Easy

exchange of small SkyRouter satellite

MAGELLAN

MAGELLAN

MAGELLAN

MAGELLAN

IP Booster:Scaleable Cluster

Sky-Router

The competitive Satcom Network is possible!




Establishment of a dedicated Network Provider/Satellite Operator

ServiceProvider

Network Provider

SatelliteOperator

Ground Infrastructure

Supplier

Sat OperationEquipment

Supplier

SatelliteManufacturer Launcher

AdvertisingClient

ContentProvider End User

Business Prime

Money FlowAncillaryService

Providerse.g. IXP, Hoster

TerminalManufacturer

SPInfrastructure

SupplierRetailer




The Wild Blue Approach

ServiceProvider:LibertyMedia

Network Provider

SatelliteOperator

IntelsatTelesat

Wild Blue

End User

Business Prime



AdvertisingClient

ContentProvider

LauncherAriane Space

SatelliteManufacturer

Space Systems

Loral SSL

Ground Infrastructure

Supplier


Supplier

StrategicInvestors

Wild BlueInvestor or

Alliance Partner

SPInfrastructure

Supplier

TerminalManufacturer Retailer




The Wild Europe Approach?

Network Provider

SatelliteOperator

?????

ServiceProvider

End User

Business Prime



AdvertisingClient

ContentProvider

LauncherSatellite

ManufacturerGround Infrastructure

Supplier


Supplier

StrategicInvestors

Investor orAlliance Partner

TerminalManufacturer

SPInfrastructure

SupplierRetailer



Requirements7. Conclusion

- Bridging the Digital Divide will define the satcom technology and businessof the next decade.

- Strategy and position of the established satellite operators is still unclear

- The German Satcom industry is prepared and positioned to play a leadingrole in the development and deployment of competitive Satcom broadbandnetworks.

- The DLR recognizes and supports the position of the German Satcom industry

- The political support as well through the BMBF as through the BMWA isnot developed yet and everything should be done to shift the politicalposition on a level, which fits to the commercial and technical importance of a bridge over the Digital Divide.

Es gibt nichts Gutes, außer man tut es! (E.K.)

Documents

Broadband via Satellite: Positioning and Requirements · // global satellite network solutions/ Please insert text by "View / Header-Footer" // // February 17, 2004 / page 16 // Broadband