48 DISTRIBUTION
May-June 2016
HTS opening up new opportunities for satellite industry
dustry continuing to grow faster than the rest of the world . This , combined with the challenging geographies of the region , the limited financial capacity to invest in expanding ground infrastructure and the speed of development , all set the “ perfect conditions ” for satellite backhaul and trunking to thrive , NSR added .
Palerm-Serra also pointed out that traditionally , the high costs of capacity and the limited bandwidth associated with FSS satellites relegated backhaul through satellite to a very niche position , where there was no other alternative . “ However , HTS is really changing how satellite integrates with ground infrastructure and mobile network operators are increasingly considering satellite backhaul in their business plans ,” he added .
“ As the cost per Mbps of satellite capacity declines with HTS , the population density at which a satellite solution is more cost-effective than expanding the ground network footprint increases . HTS is clearly expanding the addressable market of satellite solutions by making satellite backhaul the most cost-effective alternative in many instances .”
HTS is also making data services in remote locations economically feasible , Palerm-Serra continued . With HTS , backhauling 3G and even 4G at “ reasonable bandwidth ” still renders enough profit margins for mobile operators . This , NSR believes , will turn out to be the key growth driver for backhaul services in the future .
HTS is clearly creating new opportunities for the satellite industry by expanding the addressable market , and any operator that wants to remain competitive in the broadband markets needs to add an HTS payload to its offering , reiterated Palerm-Sara . However , he acknowledged that the transformation triggered by HTS is “ very profound ” and raises a number of challenges for incumbent players .
While satellite operators may previously have been used to very stable levels of pricing matched with long-term contracts , the current reality is that pricing is under pressure from multiple angles , Palerm- Sara noted . “ The large amount of available capacity is forcing operators to decrease pricing to attract more customers ,” he elaborated . “ The pricing instabilities are shortening the contract length , further increasing the downward trend in pricing . New technologies such as electric propulsion or ultra- HTS satellites are reducing the cost per available Mbps , which allows new satellites to be priced at very competitive rates — the downward pressure on pricing is here to stay .”
Business models also need to change to adapt to the new opportunities offered by HTS . For instance , customer acquisition and servicing needs to “ radically change ” to fit the changing paradigm of a formerly B2B-centric industry migrating to B2C services , NSR advised . “ Mobile network operators are beginning to abandon their satellite know-how and are increasingly outsourcing their network operations , creating op-
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■ Haivision accelerates mobile broadcast contribution and monitoring over private LTE
Accelerated Media Technologies , a provider of electronic newsgathering ( ENG ), digital satellite newsgathering ( DSNG ) and electronic field production ( EFP ) vehicles , has selected Haivision ’ s low latency Makito X H . 264 encoder and decoder to power the bidirectional video experience for its ENGenesis solution .
ENGenesis combines LTE technology adapted to operate in the 2 / 7GHz BAS band . In contrast to cellular bonding systems , LTE over a broadcaster ’ s current 2 / 7GHz BAS Band provides private , secure and high-performance transmission . In addition , broadcasters no longer need to deal with the expense and reduced interactivity of satellite , the congestion of bonded cellular , or the availability
Over the next decade , there will be an “ explosion ” in demand for satellite fixed broadband data , with the vast majority of the growth coming from High Throughput Satellite ( HTS ) infrastructure , predicted Lluc Palerm-Serra , analyst at market research and consulting firm NSR .
In the Q1 2016 newsletter of the Asia-Pacific Satellite Communications Council ( APSCC ), Palerm- Serra described how HTS architectures will grow from a broadband market share of 54 % to just above 95 % in the next decade .
Most of this growth will stem from high-volume , low-value consumer broadband applications , but premium applications such as backhaul and trunking or corporate networking would also present “ interesting opportunities ”, said Palerm-Serra , who added : “ Any operator who wants to stay relevant in broadband markets needs to incorporate an HTS offer .”
NSR also sees Asia-Pacific being at the forefront of innovation for HTS , citing IPSTAR as the first big success story for HTS satellites , proving the value of the new technology in a wide variety of verticals .
HTS will create the conditions for satellite operators to enter the mass market of Internet provisioning . Palerm-Serra explained : “ Before the emergence of HTS , satellite Internet was a very niche application with prohibitive costs and poor data services . Satellite Internet is not made for heavy over-the-top ( OTT ) consumers , but offers combining acceptable data caps at affordable costs for middleincome households have attracted large amounts of customers from remote or underserved locations . With several satellite Internet suppliers close to or surpassing the one million subscriber mark , consumer broadband is a proven business model today .”
Asia-Pacific also dominates the global mobile industry , accounting for half of the world ’ s connections . NSR sees the region ’ s mobile inportunities for managed services … from customer relations to cost structure or performance optimisation , satellite operators must re-think their business plan ,” said Palerm-Sarra .
However , there is potentially a bright future and new opportunities being unlocked , as HTS “ significantly improves ” the cost equation for satellite solutions . Expect consumer broadband to create the highest levels of demand for satellite broadband capacity , where HTS is opening the doors of mass markets with subscribers soon to be counted in the millions , NSR predicted .
Palerm-Sarra concluded : “ A lot of new opportunities are emerging
High Throughput Satellite ( HTS ) infrastructure will be the main driver for the growth in demand for satellite fixed broadband data , said NSR .
around HTS , but the competitive environment is also changing at a fast pace . New technologies , new markets , new value chains … all these put pressure on the industry that needs to adapt very rapidly in order to stay competitive . Asia will once again be a key battleground market as the volume of IP traffic has , is and will remain the highest around the globe .”
and stability of local IP connections , according to Accelerated Media Technologies .
Dudley Freeman , vice-president of business development at Accelerated Media Technologies , said : “ The Makito X encoders and decoders give us the quality and performance ideally suited to provide the interactive performance across our networks . A news organisation certainly depends on the quality of the contribution , but also relies on timecritical feedback loops to keep all remote personnel coordinated .”
Peter Maag , chief marketing officer at Haivision , added : “ It ’ s great to see applications like this that strike a perfect blend of cost , quality and performance that make a difference in the industry .”
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