New constellations and technologies will enable enterprises to access applications and services in both urban and the more remote regions of the country. Fibre and satellite will co-exist and operate side-by-side. Satellite will be seen as complementary to copper and fibre infrastructure, with enterprises taking up satellite based on reliability and quality of service. However, enterprises will select the option that fits best, looking at availability, pricing and application suitability. In South Africa, there are a number of long-distance and metro fibre projects underway, with many of these at advanced stages of deployment. There will still be a need for satellite to connect remote regions and cities, as well as other branches that may be across the borders of the country.
Reducing cost
Satellite services for enterprises in southern Africa are increasingly gaining the attention of CIOs and telcos, as new technologies such as high throughput satellites (HTS), increased capacity and new constellations such O3b make satellite a more viable medium. A number of potentially game-changing developments in 2014 and 2015 will have a major impact on the satellite industry. The first is the arrival of a new player, O3b. Other potential triggers for major change include new technology such as HTS and the deployment of Ku and Ka band services.
High throughput satellite (HTS) is a technology that allows for a throughput of at least twice, but up to 20 times more than the traditional fixed satellite services, per allocated spectrum, thus reducing the overall cost per bit transmitted and received. The increase in capacity is achieved through the re-use of spectrum and spot beam transmissions. Spot beam transmissions allow the satellite to direct its coverage over a smaller area, typically in the order of hundreds of kilometres over fixed satellite services, which are usually in the order of thousands of kilometres.
Most HTS satellites currently in development and deployment are in the Ka band, which operates in a frequency range of 26.5GHz to 40GHz. Ka band delivers a higher bandwidth service. However, the high throughput and the frequency range of Ka band imply that it's susceptible to signal disruption from rainy weather. Ka band services will gain prominence as satellite providers increase their investments in this platform over the next two to three years.
Ku band operates in the frequency range of 12GHz to 18GHz. The services are used for broadcast transmission and telecommunications backhaul. The advantage of the Ku band is that it doesn't suffer the same interference from terrestrial microwave radio that C- band does and the uplink and downlink power can be adjusted to allow for smaller receiving dishes. In addition, the band is also less susceptible to rain fade than the Ka band. C- band operates in the 4GHz to 8GHz frequency range. The platform is often preferred for enterprises operating in remote areas due to its better performance under adverse weather conditions, when compared to the other platforms such as Ku and Ka bands. However, major challenges include the need for a large receiver dish and the lower throughput and high latency.
The other three billion
O3b refers to the 'other three billion' people on the planet who remain underserved or cut off from the information highway. The company launched its first four satellites in June 2013, with another eight expected to be placed into orbit during 2014. The company's investors are Google, Liberty Global, HSBC and SES. The total funding raised by O3b for the initial eight satellites was $1.2bn. O3b has chosen to offer services to ISPs, network operators, enterprises, and governments rather than consumers. O3b brings new technology to the market with a constellation at a lower orbit, 8 062km above the Earth, an altitude known as Medium Earth Orbit (MEO), giving it a 'fibre-like' quality and throughput. Since the signals travel a shorter distance and the new frequency provides a higher bandwidth, these satellites are designed to operate in markets not well supported by terrestrial fibre-optic cables or microwave backhaul. O3b's constellation of satellites uses multiple spot beams, which increases each satellite's capacity and decreases the cost of bandwidth.
O3b refers to the 'other three billion' people on the planet who remain underserved or cut off from the information highway.
Latency has been reduced to 130m/s with reduced jitter to cater for data-rich and time-sensitive applications requiring throughputs in excess of 100Mbps. The system can provide throughputs of up to 1.2Gbps. O3b's entry into the enterprise arena will shift perceptions of satellite services among enterprises, with a further impact being the anticipated uptake of more sophisticated services, unlocking further opportunities for service providers and integrators.
Enterprise concerns
Satellite service providers are well aware of the opportunity offered by the South African enterprise and have positioned services and new technologies against competing products such as fibre and copper. However, there's a strong need to focus on quality of service and communicate the benefits of satellite services and what the satellite services can do for the enterprise not only in reaching rural areas, but also in terms of redundant links and quality of service.
Service providers will also need to understand that a fine balancing act is needed: costs, capacity and quality of service will still be a major issue for enterprises seeking to take up satellite as a gap filler and alternative access method.
New technologies, additional capacity and fresh constellations may be the right start to begin changing perceptions among enterprises. However, cost and quality of service issues may linger.
Enterprises have an opportunity to re-examine satellite consumption and determine the most optimum access mix according to needs and applications. New capacity and technologies may mean that more enterprises can now secure the same quality of service across their entire network at a lower cost than was previously available.
First published in the July 2014 issue of ITWeb Brainstorm magazine.
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