Fixed Satellite Systems Fixed Satellite Systems (3)(3)

Regulatory Shifts, Trade Regulatory Shifts, Trade Constraints, Frequency Allocation Constraints, Frequency Allocation

and New Business Trendsand New Business Trends

Dr. Joseph N. Pelton

Once upon a time…Once upon a time…

For the last quarter-century, market relationships have been fairly stable

The Current Satellite EnvironmentThe Current Satellite Environment Satellite organizations are, more and more, selling to business and end-

users. This has resulted in corresponding growth in VPNs and IP based enterprise networks.

Fewer satellite carriers and many of these have been “privatized” (e.g. Intelsat, Inmarsat and Eutelsat) and then bought out by private equity holders.

Consolidators and value-added organizations are offering a greater range of services and flexible DVB and IP platforms for video, multimedia and enterprise services

No new spectrum and some allocated satcom frequencies being opened up for combined terrestrial and space communications services. (Increased concern about inteference. e.g. UWB etc.)

Move towards integrated voice, data, GPS, multi-media, web mapping and earth sensing services to smaller and portable units

Dual use requirements for defense related services are often driving the market & new applications

Liberalization and Growth Liberalization and Growth in Satellite Communicationsin Satellite Communications

Regulatory and Market Shifts of the 1970s and 1980s 1975 “Thrilla from Manilla” fight on HBO demonstrated

potential of satellite-delivered programming. Kicked off massive growth in cable TV

FCC “Open Skies” policy of the 1970s put Commission on record as favoring competition

1978 decision by PBS to move network affiliated distribution to satellite created new paradigm

FCC 1980s decision ended Comsat monopoly on access to international satellites and the move to privatize Intelsat and other Intergovernmental orgs.

Entrepreneurial boom in teleport services Commercial Satellite services have prospered

Regulatory Working Group IssuesRegulatory Working Group Issues Spectrum Auctions/Fees

– ITU Satellite Network Cost Recovery– Universal Service Fund

Interference Protection– Unlicensed Devices– Ultra Wide Band

Satellite Broadband Rollout– Global Broadband Satellite Initiative– Congressional Support for tax incentives, subsidies

Homeland Security– CALEA– Emergency Alert System– Critical Infrastructure Protection

Satellites Are Critical InfrastructureSatellites Are Critical Infrastructure Early 2003 – GAO Report re: Commercial Satellite

Infrastructure “Commercial Satellite Security Should Be More Fully Addressed”

Early 2003 – Homeland Security Act

“Satellite Communications Infrastructure is Critical National Infrastructure”

Late 2003 – GAO Report re: DoD’s Procurement Of Commercial SATCOM

“Strategic Approach Need For DoD’s Procurement Of Commercial SatCom”

Early 2004 – NSTAC Satellite Task Force Report to President

“Commercial Satellite Industry is Critical To Our National, Economic, and Homeland Security”

New Initiatives with regard to NATO Satellites and Japanese Surveillance Satellite Networks.

Trade/Market AccessTrade/Market Access Eliminate Excessive Regulatory Fees

Regulatory or control fees for satellite services should be proportional to the regulation of the service – i.e. on a cost reimbursable basis

Provide Transparent, Non-Discriminatory License Procedures Where individuals authorizations or registrations are required, they should

only serve to validate the licenses already obtained by the satellite operator

from its licensing administration.

Eliminate Local Entity/Local Presence RequirementsSatellite operators should not be required to establish a local commercial and technical presence in each country in which they provide services.

Trade/Market AccessTrade/Market Access Provide National Treatment for Foreign Operators/Eliminate

MonopoliesRegulators should remove any foreign ownership restrictions (or preference for domestic operators) that affect the competitive provision of satellite services.

Eliminate Burdensome Frequency Coordination RequirementsSatellite operators should not be required to obtain a license of authorization to use the radio-electric spectrum associated with their space stations on a country-by-country basis.

The World Trade OrganizationThe World Trade Organization The voluntary plan asked of WTO members must address such

issues as the degree to which there can be international ownership of satellite systems, the extent to which there must be local partners in satellite systems, and the provisions that related to licensing of frequencies, and other regulations that apply to national and International/regional satellite systems.

The WTO is now in a review mode to determine if the conditions of the voluntary plan have been met and if financial penalties or enforcement measures are needed.

The WTO, unlike the ITU, has enforcement powers and can fine or impose penalties for free trade restrictions including non-tariff barriers.

Spectrum AllocationsSpectrum Allocations There are many hundreds of satellites now in orbit (250 GEOs

for FSS including some for FSS & BSS) and nearly 200 more MSS in LEO or MEO for MSS and RDSS and SNSS services.

Only minor new allocations have been provided in the past decade and many of these have been in the hard to utilize Q/V and W bands above 38 GHz. Further satellites have been increasingly forced to share with terrestrial systems.

There have not been new allocations for military communications and radar.

This has driven technology towards more and more frequency reuse, more efficient multiplexing and more efficient modems.

Course ReviewCourse Review1. Differences between FSS and other satellite services

(especially MSS and BSS) and overview of all space services. (Reasons for GEO Orbit)

2. Context of FSS growth in terms of the Negroponte Flip and Pelton Merge (The seamless digital Interface and key constraints for future satellite growth. Importance of interface standards. FDMA, TDMA, CDMA and DWDM)

3. Overview of Market Trends for the Commercial Satellite Industry and Market Drivers.

Course Review (Cont.)Course Review (Cont.)4. Evolution of FSS satellites and smaller and lower

cost user terminals (especially in Ka-band)

5. Key elements of modern FSS satellite networks– Digital compression and MPEG standards.– Frequency re-use (spatial isolation and polarization).– IP based systems.– DVB-RCS and DOCSIS.– IPoS and accelerators.– Migration to higher frequencies and strategies to deal

with rain attenuation.– Issues and problems including IP Sec and VPNs.

AssignmentAssignment

Define/Explain the terms/text highlighted in Yellow

Answers are available in this presentation and Video Lecture of Dr. Pelton fixedSatSys_3-3.mp4 file