Satellite Telecommunications and
the provision of Universal
Services
Giuseppe Viriglio
Director of
Telecommunications and Navigation
1
Value Chain of Main Space Applications
The 3 value
chains
in commercial
satellite
Assessment of the downstream value-adding
sectors
of space-based
applications
Th
e
sa dow
n
tel
lite stre
se am
cto
r
Th
Th
es
es
pa
a
op
t
ce
era ellite
in d
tor
us
s
try
SATCOM
Satellite Manufacturing *
Less than 20 companies
1.8
Launch service provision *
Less than 10 companies
1.5
Lease or sale of
satellite capacity
7
EO
0.4
<50 companies
Highly concentrated
Value-Added
Services
Incl. Europe
18
1.3
No commercial company
<10 companies
Highly concentrated
0.5
A large number of
companies, incl.
0.5
consumer electronics
leaders
30
Final Presentation –March 21st, 2007
SATNAV
0.5
User ground
equipment &
terminals
A large number of
companies, of which a
few are global
applications in 2005 (€ in billion)
A limited number of
companies, generally
space primes
A limited number of
companies, generally
professional electronic &
aerospace contractors
7
2.3
0.4
17
54
* market value at launch date
Breakdown of Satellite
Services Revenues
by Regions - 2005 by Regions - 2005
Breakdown of Satellite
Services
Revenues
€ in billion
€ in Billion
NORTH AMERICA
€35b
EO
0.9
Satnav
8.6
EUROPE
€21b
EO
0.4
Satnav
2.3
Satcom
18.1
ASIA
€11b
Satcom
25.6
Satcom
5.5
Satnav
5.8
REST OF THE WORLD
€5.4b
Satnav
0.1
Satcom
5,3
Earth Observation derived from revenues of US and European/Canadian companies only for which geographical split is not available. Europe includes ESA/EU countries (including Canada)
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 21st 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
Service usually
addressed by
Commercial initiative
i.e. Private Operators
but with limited
performance i.e.
narrowband
Non Privileged
Regions: Remote, rural
environments
Intra Country
Solidarity: Digital
Divide: Partnership
between public and
private, e.g. Wildblue
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 panEuropean 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.