Broadcasting

August 17, 2006
Hughes sees market for satellite-based broadband services

NEW DELHI -- Hughes Network Systems' (HNS) invention of very small aperture terminals (VSATs), over 20 years ago, enabled it to provide large enterprises highly reliable, end-to-end communications with guaranteed quality of service regardless of the number of sites or their geographic location. Today, its networks are used for a variety of applications such as Intranet and Internet access, voice services, connectivity to suppliers, franchisees and customers, credit authorisation, inventory management, content delivery and video distribution. Hughes Network Systems is the world’s leading provider of satellite-based communications networks and services to both the enterprise and consumer markets. According to the 2005 annual VSAT industry report, Hughes Network Systems had a worldwide market share of 55 percent in 2004 based on the number of terminals shipped.

The company recently introduced a new broadband satellite platform, the HX system, a cost-effective solution for smaller networks. The system supports high uplink channel rates, upto 3.2Mbps, and enables operators to provide bandwidth intensive applications such as cellular backhaul, maritime, upstream oil and gas exploration and videoconferencing.

Dave Rehbehn, senior director, marketing international division, Hughes Network Systems gave Convergence Plus his point of view on the state of satellite broadcasting industry in India.

Convergence Plus: Hughes recently launched a new broadband satellite platform. Tell us more about it.

Dave Rehbehn: The HX System, a cost-effective solution for smaller networks, provides high quality of service (QoS) and employs the most efficient implementation of the DVB-S2 industry standard with Adaptive Coding and Modulation (ACM). It is also compliant with IP over satellite (IpoS), the first global satellite industry standard approved by TIA in North America, and ETSI and ITU in Europe. The HX System utilises advanced bandwidth management techniques, enabling operators to provide their customers with a high quality of service while maximising satellite efficiency. Optimised for smaller networks, the HX design builds upon a solid and field-proven foundation, leveraging many of the features and functionality of the widely deployed Hughes broadband satellite technology -with over 900,000 terminals shipped worldwide.

CP: How has the advancement and standardisation of satellite transmission technology created new opportunities for the delivery of IP-based services?

DR: DVB-S2 is the most recent satellite standard in the market and incorporates significant advances over prior standards such that operators can realise significant bandwidth savings over the prior standard. In its most common form, with 8PSK modulation and LDPC coding, an operator can realise about 30 percent bandwidth improvement. However, unique to Hughes, we have implemented the ACM part of the standard, which allows operators to achieve an addition 20 percent to 30 percent bandwidth efficiency. These bandwidth efficiency improvements open new opportunities for Hughes to provide satellite-based IP services for a variety of applications including rural and remote services.

CP: Are enterprise satellite providers offering services and applications that really hold true value?

DR: Definitely yes, and the proof in this is the extensive and continually growing set of enterprises relying on satellite-based services. Beyond simple IP transport services, an emerging area of services and applications for Hughes is in the realm of ‘Digital Media Services’. This encompasses a wide range of services from simple business TV, through distance learning and to digital signage. These are applications where satellite, with its inherent multicast capabilities, brings strong value to enterprise networks.

CP: What are the issues that need to be addressed to make this happen?

DR: The issues for satellite broadband connectivity are the same as for terrestrial communications – performance, reliability and economy. Hughes is focused on continual improvement in each of these areas and that is borne out in the product innovations we bring to market on a regular basis – most notably our recently announced “DVB-S2 with ACM support.

CP: What are the emerging standards in satellite communications today and where is it all heading?

DR: The most important standard for satellite communications is the DVB-S2 standard. This standard brings the performance of satellite transmissions as close to theory as our engineering folks think is possible. DVB-S2 is newly emerging as it is the next generation successor to the DVB-S standard, which was widely adapted by both satellite TV and satellite data operators. The widespread popularity of DVB-S meant that the chip sets for implementing these standards were driven down in cost through volume and competition – these cost savings were passed to the ultimate end user in the form of lower cost satellite TV receivers and broadband data terminals. We see the potential for similar efficiencies with the DVB-S2 standard as well and this ultimately means more choice and value for consumers and enterprises alike.

In addition, the Hughes return channel air interface, IpoS, has been approved as a standard by the TIA, ETSI and ITU organisations. With close to 1,000,000 terminals using the IPoS standard, it is the most widely deployed standard for return channel over satellite communications.

Beyond the DVB-S2, IpoS, the standards that are important for satellite broadband are the same standards that drive the rest of the communications industry. The Hughes satellite broadband system is an IP system first and foremost – satellite is simply the means we use for transmission.

CP: What are the prospects for satellite broadband?

DR: We think the prospects for satellite broadband are quite good – this is fueled by three factors. Firstly is the surging demand globally for broadband connectivity – we see this everywhere around the world including developing countries where governments are using broadband connectivity to bring knowledge to underdeveloped regions. Secondly, while many parts of the world can be connected economically using terrestrial including cable, DSL or fiber access schemes, there are many places where it simply doesn’t make sense for a carrier to make these investments. This is where satellite has a major place to play. Finally, we’ve seen significant gains in reducing the capex cost of satellite broadband as well as the opex through such things as the DVB-S2 standard. Reducing the cost of satellite broadband means that Hughes can effectively address a larger market segment.

CP: How can satellite broadband Internet become a weapon for bridging the digital divide?

DR: Satellite broadband is today a “weapon” for bridging the digital divide. In the US, which is one of the most wired nations in the world, we provide broadband connectivity to over 275,000 consumers. These are people who, were it not for satellite broadband, would be left with only a dial-up for access connectivity. Even more compelling are some of the governmental initiatives we’ve seen around the world where satellite broadband is being used to significantly improve education services in rural regions. An excellent example of this is in Mexico where the government has implemented a series of “eMexico” initiatives to bring broadband to schools throughout the country. The Hughes satellite system is used to provide cost effective access to schools in rural and remote areas. In India, Hughes has worked with the Department of Space to provide satellite broadband infrastructure for the “Edusat” project, which aims to extend University level teaching to schools throughout India.

CP: What technology advancements are necessary for satellite communications to be targeted toward the consumer, or will it always be focused toward commercial use?

DR: In the US, the consumer segment is a major focus area for Hughes, and we see this as one of our growth areas over the next several years. As economies such as India continue to grow, we believe that there will be excellent opportunities to provide satellite broadband services targeted to the consumer.

CP: What, according to you, is the potential for your broadband satellite solution in the Indian market?

DR: With our local partner, Hughes has been in the Indian market for over 10 years and we’ve had strong success with the enterprise sector in providing satellite broadband services. In fact, we’ve seen our India operation first to bring innovative services to the market. The Indian market is dynamic and demanding as long as we continue to respond quickly -- providing a full range of managed services for the enterprise sector and the value-added services needed by the SME sector. We see an exciting potential for satellite based broadband services throughout the Indian region.