Satellite Telecommunications and the provision of Universal Services

Giuseppe Viriglio Director of Telecommunications and Navigation

1

Value Chain of Main Space Applications

T h e s p ac e in d u st ry T h e s at o el p li er te at o rs Satellite Manufacturing *

Less than 20 companies

Lease or sale of satellite capacity

SATCOM 1.8

Launch service provision *

Less than 10 companies

1.5

7 EO 0.5

<50 companies Highly concentrated

0.5

0.4

<10 companies Highly concentrated

SATNAV

No commercial company

T h e d o w sa n tel st li re te am s ec to r User ground equipment & terminals Value-Added Services

A large number of companies, of which a few are global

Final Presentation –March 21st, 2007

30 Incl. Europe 18 54

A large number of companies, incl. consumer electronics leaders

0.5

A limited number of companies, generally space primes

1.3

0.4

7 17 2.3

A limited number of companies, generally professional electronic & aerospace contractors

* market value at launch date

Breakdown of Satellite Services Revenues by Regions - 2005

€ in billion € in Billion NORTH AMERICA €35b EO 0.4 EUROPE €21b ASIA €11b REST OF THE WORLD €5.4b

The importance of Satellite Telecommunications in the XXI Century

Today there are more than 250 Civil telecommunication satellites in the Geostationary Orbit.

Together they provide more than 8000 transponders with a combined capacity of 300 Gbit/sec which reaches hundreds of millions homes. Satellite telecommunications is one of the most pervasive broadband delivery system in existence Today satellites permeate everybody’s life from the moment we awake listening to the radio, until we go to bed switching off the Television: i.e.

      TV and Radio systems allow news/events being brought to studio through contribution links.

TV and Radio are distributed to UHF Transmitters and Cable Head ends.

More than 100 M Homes receive at home nearly 20 000 TV broadcasted signals.

Thousand of corporate networks allow us to, tank petrol, control the quality of the water we drink, allow to pay in toll motorways, buy a car or a house, cash a check or even play lottery. etc, etc, Satellites are an intrinsic part of public emergency systems: from civil protection, to telemedicine or communications on the move for strategic deployment.

We find our way through the streets of our cities, our roads, on the fields, and on the sea, and on the desserts through satellite navigation systems.

However, with very minor exceptions, satellite communication systems have not yet matured in the provision of universal broadband access to the mayor Information tool of the 21 st Century: Internet….. WHY?

BROADBAND INTERNET ACCESS: AN UNFULFILLED PROMISE

Today broadband Internet access is supposed to be at the reach of anybody who may want to have it. However the reality is that there are more than 1200 Million Internet users, …..but of those just over 200 million are broadband:

ADSL is not as pervasive as terrestrial operators would have us to believe .

The reality is that to access Internet through a narrowband channel is like looking to the world through the shadows of a lamp projected on the walls of a cave.

Satellites can provide interconnectivity to any point of the planet that is covered by their antennas. They are therefore prime candidates as a solution that allows the provision of universal services.

We are missing an important opportunity to improve the life of Europeans and non Europeans citizens.

Universal Service: Where and How

Privileged Countries Non Privileged Countries Privileged Regions: ie. Urban and suburban environment High performance service addressed by Commercial initiative i.e. Private Operators Non Privileged Regions: Remote, rural environments Intra Country Solidarity: Digital Divide: Partnership between public and private, e.g. Wildblue Service usually addressed by Commercial initiative i.e. Private Operators but with limited performance i.e. narrowband Inter Country Solidarity:Public Political/Solidarity actions required

An EXAMPLE: Broadband and Satellites in the USA

The USA is home to some of the most advanced telecommunications infrastructure of the World However just a few miles from the New Jersey Turnpike there are homes that can not get broadband access…. were it not because of satellite systems. The USA has declared Broadband Access a Universal service and has allocated financial resources to provide for this decision …. Results: WILDBLUE offers an optimized satellite solution: Based on a partnership    

With the National Rural Telecommunication Association, Participation of Intelsat With an Optimized Satellite System With economies of scale in the provision of terminals and service.

Currently WILDBLUE installs at a rhythm of 1000 users each day .

SPACEWAY offers a comparable service currently in Ku Band but soon in Ka Band with their new satellite, SPACEWAY 3…. More than 450 000 sites currently in operation.

The importance of providing the service on an optimized Broadband satellite system

Currently many European and non-European Operators offer Broadband access services over general purpose FSS/Broadcast satellites. This is inefficient.

The Internet Data requested by an user, say in Rome, will also be sent to Moscow, Ankara, Edinburgh and the Canary Islands. Waste of Power: Waste of Spectrum: Inefficiency of use of space segment: Expensive service: Few customers.

Optimized Multi-spot beam satellite systems deliver the data only to the spot that needs it, with much lower power per signal and allowing the spectrum to be reused many times. Result: the space segment can be one order of magnitude more economic, the capacity of the system can be an order of magnitude larger reaching millions of customers….. and there is scope for the generation of economies of scale in the production of terminals.

Broadband Satellite based solutions should be reconsidered to address the problem of the Digital Divide in Europe and other regions.

The debate between ESA and the European Union on the Digital Divide

The EU has allocated more than 10 000 Million Euro to Telecommunications infrastructure. Of these practically nothing for satellite communication systems.

The rules of the EU impose 

Technological neutrality



Development limited to Local/Regional level initiatives



No mechanisms for the aggregation of the demand Further Europe has not declared Broadband a Universal Service!

ESA considers that these considerations de facto discriminate strongly pan European satellite based solutions: It should be possible to federate/ aggregate the demand, provide a solution that will meet the Digital Divide requirements of the EU Countries creating a common European infrastructure

ESA and the Digital Divide

ESA has spent in excess of 200 M Euro in preparation of the European industry for Broadband satellite systems and associated technologies. ESA has supported and will continue its support to the developments and deployment of systems, services and equipment covering all the elements of the value chain.

ESA will continue its support to Satellite Operators to facilitate and promote the development of broadband services ESA considers most important to maintain a policy of Open provision of services around an agreed standard DVB S/DVB RCS.



Taking into account USA support to American industry (Both Space and Ground Segment) With strong technology support through comprehensive Government programmes.



With a favorable legal framework ESA considers that European Industry runs the risk to will play a minor role in the provision of Broadband solutions to Europe and other regions of the World.