While the present broadband market in India has yet to fulfill the promise it
holds, there is definitely a vast potential and a high possibility that the
segment would really take off.
With huge amount of investments in the fiber backbone networks, from big
players like BSNL, Reliance, VSNL, Railways, Bharti etc., the basic
infrastructure to service the broadband market, whenever it materializes, seems
already in place and is growing. The concern areas however are the last mile
delivery of such services, the packaging of services and the consistency in
quality of such services along with the price points at which such access is
provided.
The vital ingredients for providing broadband services have now been more or
less defined. Users today, demand one or more of the following:
n High data rates not only for
downloads but also for their transmit paths
n Consistently high data rates
irrespective of how the service provider manages his bandwidth allocations
across his customer base
n An ‘always-on’ connection,
free from dialing hassles
n And all these at affordable
prices—both from upfront capital expenditure and the recurring perspective.
Other than the many options that have been increasingly deployed for such
broadband services like DSL, cable modems, wireless solutions like Wi-Fi and
shared radio links, there is the satellite option, that is really making huge
inroads in this market the world over.
Traditionally, thought to be a solution for infrastructure-building,
thin/medium route traffic and for connecting geographically dispersed locations,
satellite now is emerging as a substitute to the above options for broadband
delivery. Across the Asia-Pacific region, enterprise broadband services delivery
through satellite is the fastest growing market amongst all the satellite based
services, with countries like China leading the way.
The satellite-based Star networking market, so far most popular in North
America, has arrived here and could rapidly increase the satellite share in the
overall market. Star Broadband products today offer a high 2 Mbps return channel
data rate on technologies like MF-TDMA.
Such technologies provide the platform for service providers like SpeedCast
and Tatanet in India for broadband services. From their hubs in Mumbai and Hong
Kong respectively, Tatanet and SpeedCast, provide an unprecedented offering of
services by satellite to their customers, based on the latest technology that
can sustain video conferencing or video and VoIP.
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| The
broadband market growth is largely dependent on volumes driven by
innovative technologies and a dramatic reduction in prices that make
satellite an option for the mass markets |
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More and more advanced broadband applications have now become a reality—VoIP
services provided by BT in Nigeria, telemedicine as implemented in China,
distance education for more than 3500 schools all across Mexico in a government
sponsored project etc.
These present-day broadband terminals also offer very high scalability
starting from the lowest end of applications—the narrow-band point-of-sale
kind of applications—going right up to the truly broadband streaming-video
kind of applications.
Nevertheless, it is the present cost of terminals and also the space segment
prices in many cases that prohibit a rapid growth in these broadband markets.
The growth in terminal volumes is the key to reducing the cost of services to
such enterprise markets.
The same is even more critical to consumer markets. Open standards are
typically seen as the path to such high-volume, low-cost production and
increased market size. The satcom markets, so far driven by a few players, have
now entered this phase wherein standards are emerging and customers are
gradually demanding open solutions. There are presently two major trends
worldwide in satcom—the DVB-RCS standards for return channel via satellite,
and the DOCSIS cable-modem standards over satellite.
DOCSIS: New World Standard?
DOCSIS or data over cable service interface specification started nearly seven
years ago, is a standard for transporting data over cable modems, which is by
far the leading broadband choice for consumers especially in North America.
Today, DOCSIS has more than 10 million subscribers worldwide. This proven
technology has been adapted to provide similar services on satellite now under
the DOCSIS-S version, and has been already deployed by WildBlue in North
America.
The development of DOCSIS for satellite began in the late 1990s with WildBlue
Communications’ plan to bring broadband to homes in North America. It quickly
became obvious that modifying traditional VSAT technology was going to leave
monthly service costs too high, never reaching the $40 to $50 per month
benchmark already set by alternatives such as cable and DSL. This led WildBlue
to consider cutting the costs of bringing satellite-based broadband to the home
by adapting the cable modem DOCSIS chips, back office systems and tested
technology.
Beginning with a contract for WildBlue, DOCSIS-S came into being—a version
modified for the physical attributes of satellite transmission. With the
existing DOCSIS cable-modems being built around the third and fourth generation
components, the DOCSIS-S has a headstart over other standards, in lowering the
cost of consumer terminals, enabling easy self-installation for customers, and
providing mature back office, billing and network control software to network
providers. Pricing for such complete terminals are projected at around $500,
depending on volumes and demand worldwide.
Another significant advantage of DOCSIS-S is that it would offer lower
satellite bandwidth usage, which is usually the major cost in any network.
Advanced modulation and turbo codes are combined with powerful, dynamic fade
mitigation techniques to offer over 2.25 bps/Hz on the forward channel, which
would result in a 100–150 percent higher capacity per transponder, compared to
competing VSAT technologies.
As already mentioned, the upfront cost of the terminals is not the only cost
that is going to spur the growth of this market; it is rather the recurring
space segment cost, that of using the terminals that is more critical for this
market. To take advantage of DOCSIS-S, it is therefore the newer satellite
technologies like the use of spot-beams, Ka-band frequency use or on-board
processing that would define the success of these markets. For example,
spot-beams would allow focused footprints with very high power over a small
region, say for every state in India. Moreover, spot-beams would also be
adjustable so that they could be oriented to address specific regions. They
would take advantage of frequency re-use like in GSM, thereby allowing more
efficient usage of the spectrum.
While the DOCSIS-S terminals were initially planned to be launched on these
newer Ka-band satellites, considering the time-to-market such services, these
service have already been rolled-out on Ku-band satellites.
Already two of the world’s leading satellite operator/service provider
companies have put their money behind it. While Intelsat has expressed great
faith in the technology, evidenced by its new 30 percent ownership of WildBlue,
Eutelsat is conducting trials of a DOCSIS-based system, with an eye towards
rolling out consumer services sometime this year. Although both these players
see the technology as a potential to create a hot market for consumer satellite
broadband, currently it is still the enterprise market leading the way in emand.
IntelSat has further announced along with Orbit Data Systems Limited (ODSL),
a network for a two-way, satellite-based broadband Internet access service to be
available directly to consumers and small office/home office users in West Asia
based on these standards. In a multi-year agreement, Intelsat will provide the
integrated, end-to-end network connectivity, while ODSL will be responsible for
sales, marketing and retail distribution of the service in the West Asian
region, targeting more than 18,000 terminals in the first two years.
With the new Ka-band satellites with high-powered spot-beams and frequency
re-use techniques, the efficiencies and price structure of DOCSIS-S would become
even more attractive.
DVB-RCS: The Other Forerunner
Of course, DOCSIS-S still faces major competition from DVB-RCS (digital
video broadcast-return channel satellite). This standard is being backed by the
well-entrenched DVB Project, established in 1992 with more than 300 members.
DVB-RCS incorporates some of the latest technologies like turbo coding, MF-TDMA,
MPEG and ATM encapsulation standards and is emerging a strong standard on the
terminal-satellite air interface.
The key to DVB-RCS success would be inter-operability, defined as terminals
from X-vendor to work on hub from Y-Vendor and vice versa. This is what would
ultimately drive the prices down for the end-users. It is this inter-operability
and other issues like certification, that need to be resolved fast so as to pass
on the benefits of the technology to the end users. The initial feeling in the
market is that due to these very reasons RCS terminals are slightly high-priced
with tags of about $2500–$3000.
The universal observation therefore is that RCS would only be able to address
the enterprise markets and not go right up to the more voluminous consumer or
SOHO markets. But DVB-RCS is definitely the focus of a lot of research and
development and that could provide it a competitive position soon, especially
for enterprise networking.
Again it is giants like EutelSat that are driving the use of this technology,
along with many big players like Alcatel jumping on the RCS band-wagon, as also
new satellite ground-segment players like Nera, Newtec, EMS etc.
No Clear Winner
As it stands today, DOCSIS-S, with all its roll-outs, has a slight lead over
DVB-RCS, which is still in the process of certifying systems. But DVB-RCS is not
far behind and would make a very strong pitch the day it achieves
inter-operability.
Eventually, with or without the standards, it is the
performance of a product offering and at the right price-points, which counts,
and that is what would come out tops. Also it is not by refurbishing old
products or by cost-cutting that the broadband satellite market is going to
expand. The broadband market growth is largely dependent on volumes driven by
innovative technologies and dramatic reduction in prices so as to make satellite
an option for the mass-markets rather than the class-markets only.
Ultimately, as the market grows beyond the critical rollout
numbers, there may be no distinction between enterprise and consumer
technologies. Already, the distinction between the markets is blurring with a
growing number of in-home offices that cross over from business to home use
during the course of a day. It is only time, that will uncover the future of
satellite broadband technologies and standards that would finally drive the
growth of markets through the services they can offer.
Gaurav Kharod marketing
manager (India and SE Asia), ViaSat
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