Bduk feasibility rpt satellite internet

Document Superfast Satellite for Communities:

the BDUK Pilot Project

Date 9 Feb 15

Ref / Issue rc v1.2.1 p 1 of 85

The Satellite Internet Company

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Satellite Internet

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www.satelliteinternet.co.uk

Superfast Satellite For Communities

The BDUK Pilot Project

Satellite Internet / M J Locke © 2015

This report details the technology and commercial model for mixed-mode superfast satellite

systems to achieve the best cost-per-site for deployment of superfast broadband in the “last 5%”.

Document Superfast Satellite for Communities: the BDUK Pilot Project Date / Ref rc v1.2.1 9 Feb 15 p 2 of 85

Contents

Contents ...............................................................................................................................................................2

1 BDUK Superfast Broadband Innovation Fund ...........................................................................................6

2 Introduction ................................................................................................................................................7

3 Summary .....................................................................................................................................................8

3.1 Infrastructure Cost Model ....................................................................................................................9

4 Pilot Commercial Model ........................................................................................................................... 11

5 Lessons Learned Report - Introduction ................................................................................................... 12

5.1.1 Proposal Outputs ....................................................................................................................... 12

5.1.2 Contractual questions raised and answered ............................................................................ 13

5.2 Sensitivity analysis on existing customer data................................................................................. 14

5.3 The Commercial model explained .................................................................................................... 16

5.3.1 Area Investment ......................................................................................................................... 16

5.3.2 Sensitivity Analysis .................................................................................................................... 16

5.3.3 Revenue / Cost Drivers ............................................................................................................... 17

5.3.4 Affordability and Capex ............................................................................................................. 17

5.3.5 Other points ............................................................................................................................... 18

5.3.6 Deployment Milestones ............................................................................................................. 18

5.3.7 Learnings from Commercial model applied in Pilot Areas ...................................................... 18

5.3.8 Geotype Classifications ............................................................................................................. 20

5.3.9 Income versus Capital Table ..................................................................................................... 20

5.4 Financial Viability ............................................................................................................................... 21

5.4.1 Cost data – Backhaul Capex vs Opex ........................................................................................ 21

5.4.2 Financial Viability – Parent Funding ......................................................................................... 23

5.5 Issues Encountered and Lessons Learned about the Final 5% ........................................................ 23

5.5.1 Identifying and Engaging the Intervention Area ...................................................................... 23

5.5.2 Scoping and De-Scoping ........................................................................................................... 24

5.5.3 Isolated Homesteads - Final 2-1% (reach 99-100%) ................................................................. 24

5.5.4 Isolated Hamlets - Sparsely Populated Areas – Final 5-3% (reach 96-98%) ............................ 25

5.5.5 Villages in the Final 10-6% (reach 91-95%) ............................................................................... 25

5.5.6 Other points regarding Direct to Home (DTH) Satellite Solution ............................................ 25

5.6 Implementation Issues ...................................................................................................................... 25

5.7 Field Deployment Practicalities ........................................................................................................ 25


5.8 Messaging ........................................................................................................................................... 26

5.8.1 Satellite History / Received Wisdom ......................................................................................... 26

5.8.2 No Phone Line Required ............................................................................................................ 26

5.8.3 Service Offering: Single, Double and Triple Play ...................................................................... 26

5.8.4 Solution Availability ................................................................................................................... 27

5.9 Customer Recruitment ...................................................................................................................... 27

5.10 Local Consultations ........................................................................................................................... 27

5.11 Lessons Learned on Performance and Traffic Management Study ................................................. 27

5.12 Lessons Learned Report - Conclusion ............................................................................................... 27

6 Updated Solution Design .......................................................................................................................... 28

6.1 Objective ............................................................................................................................................ 28


6.2 Contract Definitions ........................................................................................................................... 28

6.2.1 (a) – Schedule 3 .......................................................................................................................... 28

6.2.2 (b) - Updated Solution Coverage Forecast ............................................................................... 28

6.2.3 (c) Updated Project Plan ........................................................................................................... 28

6.3 Supplier Solution – Updated Design ................................................................................................. 29

6.3.1 Solution Design .......................................................................................................................... 29

6.3.2 Technical Viability ...................................................................................................................... 38

6.3.3 Updated Solution Coverage Forecast ....................................................................................... 41

6.3.4 Updated Project and Milestone Plan ........................................................................................ 47

6.4 Scale and Scalability .......................................................................................................................... 48

6.4.1 Scale and Scalability – Large Scale Deployments .................................................................... 48

6.5 Updated Solution Design - Conclusion ............................................................................................. 48

6.6 Appendix – Updated Solution Design – SBBS Satellite Infrastructure ............................................ 50

6.6.1 Ground Segment ........................................................................................................................ 50

6.6.2 SBBS Hub ................................................................................................................................... 50

6.6.3 Gilat SkyEdge II-c ....................................................................................................................... 51

6.6.4 Newtec Sat3Play ........................................................................................................................ 51

6.6.5 The Terrestrial IP Backbone Connectivity ................................................................................ 52

6.6.6 The Teleport ............................................................................................................................... 53

6.6.7 Network Availability .................................................................................................................. 55

6.7 Appendix – Updated Solution Design – Newtec Systems - SDN ...................................................... 56

6.8 Appendix – Updated Solution Design - Gilat Systems – DTH (VSAT) ............................................... 56

6.9 Appendix – Updated Solution Design - Brief History of Satellite Internet Services. ....................... 57


7 Updated OSS/BSS Study - Introduction ................................................................................................... 58


7.1.2 Objective of OSS / BSS System .................................................................................................. 58

7.2 Definitions .......................................................................................................................................... 58

7.2.1 BSS ............................................................................................................................................. 58

7.2.2 OSS ............................................................................................................................................. 58

7.2.3 Open Access ............................................................................................................................... 58

7.2.4 Project Wholesale Access Prices ............................................................................................... 58

7.2.5 Retail Service Provider .............................................................................................................. 59

7.2.6 Wholesale Access Products and Services ................................................................................. 59

7.2.7 Wholesale Product Information ................................................................................................ 59

7.2.8 Schedule 2 Deployed Pilot Services .......................................................................................... 59

7.2.9 EU State Aid UK Decision ........................................................................................................... 59

7.3 Internal Definitions ............................................................................................................................ 59

7.4 Review ................................................................................................................................................ 60

7.5 Review - Current OSS / BSS Platform “MyBDSL” .............................................................................. 60

7.6 State Aid ............................................................................................................................................. 62

7.6.1 Para 52 – Wholesale Access ....................................................................................................... 62

7.6.2 Para 53 – BDUK Minimum Acceptable Access .......................................................................... 62

7.6.3 BDUK Guidance on Wholesale Network Access ........................................................................ 62

7.6.4 State Aid Compliance – Managing consumer experience in Wholesale Context .................... 62

7.7 OSS / BSS Study - Conclusion ............................................................................................................ 63

7.8 Appendix - OSS / BSS Study - References Used ................................................................................ 64

7.9 Appendix – OSS / BSS Study - MyBDSL/MySI System Access Overview ........................................... 65

7.9.1 Overall purpose of the system................................................................................................... 65

7.10 Appendix - OSS / BSS Study - BT EMP Analysis ................................................................................. 67

7.10.1 Principal Job Types of EMP ....................................................................................................... 67

7.10.2 Dialogue Services – Support, Progress and Completion of Order. .......................................... 68

7.10.3 An Order for a New Line. ............................................................................................................ 69

7.10.4 Transfer of Broadband Service from RSP A to RSP B. .............................................................. 69

8 Performance and Traffic Management Study .......................................................................................... 71

8.1 Performance and Traffic Management Study - Introduction........................................................... 71

8.2 Performance Learnings So Far .......................................................................................................... 71

8.3 Performance Data reviewed during feasibility ................................................................................. 71

8.4 Performance and Traffic Measurement in Satellite Networks......................................................... 71


8.4.1 Performance and Traffic Management studies ........................................................................ 72

8.4.2 Scale and Scalability – Network Topology: Satellite vs Terrestrial ......................................... 72

8.4.3 Scale and Scalability – Satellite Throughput: DTH vs SDN ...................................................... 75

8.4.4 Scale and Scalability – Approximation with ADSL service ....................................................... 75

8.4.5 Scale and Scalability – Capacity DTH vs SDN – Speed and Data cap ...................................... 75

8.5 Factors Reviewed Affecting User Performance ................................................................................ 76

8.6 Other Performance Data sources Reviewed ..................................................................................... 76

8.6.1 Remote Monitoring as a source of data .................................................................................... 77

8.6.2 Additional steps to mitigate Delay ............................................................................................ 77

9 Demand Stimulation ................................................................................................................................. 78

9.1 Demand Stimulation - Introduction .................................................................................................. 78


9.2 What Is Demand Stimulation? ........................................................................................................... 78

9.3 Material for Customer Recruitment .................................................................................................. 79

9.4 Customer Recruitment Programme ................................................................................................. 79

9.5 Customer Contact Strategy ............................................................................................................... 79

9.5.1 Strategy Flow ............................................................................................................................. 80

9.5.2 Types of events: ......................................................................................................................... 80

9.6 Potential Bodies Already Identified .................................................................................................. 81

9.7 Demand Stimulation Study - Conclusion ......................................................................................... 81

9.8 Appendix – Demand Stimulation Study ............................................................................................ 82

10 Risk Register .............................................................................................................................................. 83

10.1 Risks and Dependencies – Risk Register ........................................................................................... 83


1 BDUK Superfast Broadband Innovation Fund

This pilot project received funding from Broadband Delivery UK (BDUK), via the Superfast Broadband Innovation Fund, which opened for bids on the 21 March 2014. The Fund was made available to suppliers to explore ways to take superfast broadband to the most remote and hardest-to-reach areas of the UK. This report is the first deliverable from the pilot project, and will help share knowledge gained from the

Fund across the industry. While BDUK endorse the publishing of this report, the views contained within

the report solely reflect the findings and opinions of the supplier, and do not necessarily reflect the thoughts or opinions of BDUK.


2 Introduction

Satellite Internet submitted a proposal to the BDUK Innovation Fund to Pilot the use of satellite technologies as a solution to bring Superfast broadband to the remaining 5% of the UK.

Satellite Internet’s solution uses a mix of SDN (Satellite Distribution Node) and individual DTH (Direct To Home) VSAT sites to get the most cost-effective balance of CPE cost and coverage within a particular area.

BDUK approved the project which was structured into two phases: Feasibility Study and Deployment.

The Feasibility Study took the proposed model and applied it to actual areas in the selected Local Body

host region: in this case, Connecting Devon and Somerset. Following the Feasibility Study, the decision was taken to deploy and the project is now being rolled out in the pilot areas.

The solution design starts by identifying clusters of 50 – 100 sites requiring connection within a (typical) radius of 2 – 3 miles. The survey identifies those within line-of-sight of a headend site (which will be served

by wifi) and those which require an individual dish connection.

This report describes the commercial model and technology and also a methodology on how to evaluate this solution for use in a particular region.

One of the first lessons learned was that this technology model needed a name as this is the first time such an integrated model has been

implemented: hence “Superfast Satellite For Communities” or “SS4C”.


3 Summary

As the roll-out of superfast continues, the cost of reaching those at the edge of the networks – the “last 5%” - has come increasingly into focus. The further away from the core, the more expensive it becomes to reach them. And, for the most rural and remote of sites, the cost-per-site of building a terrestrial FTTC or FTTP network rises dramatically as the distance rises and population density falls: the

“hockey-stick” effect on cost-per-site.

Satellite cost-per-site is not grossly affected by distance: any site in the footprint can be connected for much the same cost.

At the edge of the network, it beats the “hockey-stick

economics” of terrestrial technologies.

Satellite services have been connecting rural homes and businesses for many years. The recent roll-out of more

powerful equipment and use of higher frequencies now mean that an effective service can be offered at a reasonable

subscription and competitive connection cost-per-site.

With the very latest technology as used in this project, satellite can now offer speeds up to 25Mbps and

hence meet the Superfast requirement of “24Mbps and above”.

Satellite CPE prices have also come down significantly so that a connection can be installed for below

£450. For many rural locations, this is competitive with other technologies particularly where long cable builds are needed. Individual dish connections are known as DTH (Direct to Home) and could be termed “STTP” or “Satellite To The Premise”.

Satellite costs per site can come down further where a local wifi network can reach clusters of sites. A

larger, higher performance satellite link is installed at a central location from where wifi can be broadcast

to sites in the cluster. The higher cost of the link equipment (known as a “headend”) is offset by sharing it across a number of sites which are connected by less expensive wifi CPE. This is known as SDN (Satellite Distribution Node). In different terms, it would be “STTC + Wifi” or “Satellite To The (satellite) Cabinet with wifi last mile”.

The cost per site is dependent on the number of sites covered from the central head end. Typically, the

cost per site falls below that of DTH when about 40 – 50 sites are connected.

Communities in rural areas typically have mixed geography and terrain and it is not uncommon that wifi networks require infill for a few sites. In this solution, individual dishes are used so that all the sites can be

covered. Uniquely in this solution, the service level offered to subscribers is the same whether ultimately delivered by wifi or dish.

The availability of both wifi and dish means the appropriate connection method can be chosen for each site this keeping overall cost-per-site as low as possible for the given cluster size and type.

This combination of DTH and SDN to serve communities is known as “Superfast Satellite For

Communities” or SS4C.

The minimum cluster size is 1 as any site can be connected via its own dish.

Each headend can support up to 100 users although a lower limit is likely in practice. Where a cluster is larger than this, extra headends can be installed.


Hence the SS4C solution should be considered for any location where

1) the cost-per-site for other technologies is above £300 - £425

and

2) the number of sites varies between 1 and the low ‘000s

3.1 Infrastructure Cost Model

The costings are detailed in the commercial model and later sections. In brief:

Equipment Option Labour Offset by

SDN Headend Satellite terminal

PEP device

site survey

installation

configuration

Capex support

Wifi base station

Bracketry, mast, cables, cabinet

CPE Wifi access point wifi router site survey

installation

Capex support

customer connection charge

DTH CPE Satellite terminal wifi router site survey

installation

Capex support

customer connection charge

There is a significant variable amount due to the labour element in the surveys and installations as these are very dependent on the geotype and size of area to be covered. In addition, equipment cost can be

supported by capex subsidy and installations offset by connection charges and/or expecting consumers to install their own wifi CPE.

Take-up rate, as would be expected, increases as the costs borne by the consumers decrease.

The original budget figures were: SDN Headend @£17,000; SDN CPE @£175; DTH CPE @£525 – all including surveys and installations but excluding any subsidy or connection charge.

The first question is how

many sites are to be

served and to calculate

the cost of SDN Headend + CPE as opposed to DTH CPE on

its own. There is a

crossover point where the cost of the SDN Headend can be

amortised over a

number of sites and thus bring the cost per

site below that of DTH alone.

Depending on the

variable costs, the crossover point is around 45 – 50 sites. Above this, consider SDN; below this, consider DTH as prime mode for the area.

£0

£10,000

£20,000

£30,000

£40,000

£50,000

£60,000

1 6

11

16

21

26

31

36

41

46

51

56

61

66

71

76

81

86

91

96

Number of sites

Total Cost by Mode

Total SDN

Total DTH


In actual deployment, in

any area there will be a number of sites which can

be reached by direct Line-of-Sight wifi from the SDN Headend and some

can’t. These will be served

by DTH. This is one of the benefits of such a

mixed-mode deployment:

everyone can be connected. So the actual cost model will vary from

area to area and according

to the connection charge

chosen. Some projects (e.g. as in Germany) expect consumers to install their own wifi CPE thus bringing the central cost down further.

However, a typical simple model is:

1) Select your area and evaluate the Cost-per-site from other technologies. If this is above £300,

consider a satellite based solution (particularly if some form or connection charge is contemplated)

2) To model the SS4C solution, consider:

Number of sites SDN DTH

up to 35 /40 indicated

between 35 – 50 evaluate evaluate / infill

between 50 and 75 indicated infill

over 75 evaluate 2nd SDN Headend infill

over 100 break into 2 areas infill

3) When planning overall investment, choose your acceptable take-up rate in line with the amount

expected to be paid by the consumer for connection and/or installation. Take-up rate goes up as

cost paid by consumer goes down (and investment needed will consequently rise). This project used the BDUK definition of “affordable” to be below £100.

This will enable you to keep overall cost-per-site in any rural area as low as possible by using as the lowest cost-per-site technology for each location.

£0

£2,000

£4,000

£6,000

£8,000

£10,000

£12,000

£14,000

£16,000

£18,000

£20,000

1 6

11

16

21

26

31

36

41

46

51

56

61

66

71

76

81

86

91

96

Number of sites

Cost per Site by Mode

Cost per Site SDN

Cost per site DTH


4 Pilot Commercial Model

A Commercial Model was created based on the original tender proposal. The narrative is contained within the Lessons Learned Report section.

A version of this has been submitted to BDUK for publication.


5 Lessons Learned Report - Introduction

This “Lessons Learned” section includes the narrative on the commercial model including cost and revenue drivers, a description of viability, an assessment of End User feedback, issues encountered and resolved and an update on the appropriateness of the solution to other areas.

It summarises the lessons learned while applying the planning model to the situation in Connecting Devon

& Somerset’s region from discussions on how to choose areas and implement local actions through to

preparing final deployment plans.

Naturally, much of the information will be based on the selected areas in Exmoor and the Mendips but the

solution set can be deployed anywhere in the satellites’ footprints which cover the entire UK.

While each area across the country will be different in geotype and local conditions, this section attempts to derive useful learning from the Pilot process which can be applied anywhere.

It is intended to provide practical and worked models, checked against real-world situations, to enable

Local Bodies to evaluate the role of satellite in delivering connectivity solutions to the final 5% of UK premises.

Satellite Internet (SI) would like to thank Connecting Devon and Somerset for stepping forward to host this project with BDUK. It is hoped that this will underpin a successful deployment meeting their needs

both in the Pilot areas and, where appropriate, in the rest of their region and the UK as a whole. Thanks are also due to Exmoor Park National Authority for invaluable assistance and guidance.

The first section summarises the specific questions in the contract. The next section provides the specific answers to those questions. Additional commentary and lessons learned are provided in subsequent

sections.

5.1.1 Proposal Outputs

The Lessons Learned Report answers the questions raised in the schedule 2.1.3 of the contract. It requests a Commercial Model which is submitted separately with an associated narrative to explain the workings of

the model. This is a narrative is to include:

Sensitivity & behaviour of key cost & revenue drivers with changes in geotype, bandwidth per user (e.g. SLA / performance)

Analysis to describe where solution is commercially viable and where it isn’t

Solution applicability to Superfast White Areas

Geographies in which it can be used and scale of coverage

Retail and Wholesale offers matching to market

Effects of CPE subsidy for End User

Comparison with other Node Access models

Assessment of End User feedback on services and products; take-up level; ARPU; sensitivity on pricing

Customer recruitment material and research with LBs (demand stimulation)

Customer Experience Study


Performance and Traffic Management Study

implementation issues (e.g. in national parks)

field deployment practicalities

5.1.2 Contractual questions raised and answered

The answers provided to the above questions are for three areas modelled, Simonsbath, Luxborough in

Exmoor; and Priddy, in Mendip Heights. In addition two commercial models using Excel have been submitted from which the numbers below have been derived. These are V1.0 Feasibility - Pilot Commercial

Model Version 1.xlsx. This model feeds into the BDUK template model, V1.0 Feasibility -BDUK_Pilot_Projects_Commercial_Model.xlsx.

The contract required a report which:

Clearly identifies the Supplier's assumptions in relation to:

o Capital expenditure and sources of funding, including the requirement for Authority

funding, over the life of the Project;

The model derives capital expenditure of £70,000 of which authority funding is

£58,001 over the life of the project, but will change depending upon actual take up.

o Operational costs over the life of the Project; included support, technical salary and

maintenance of the hub.

Total operational costs are £15,912.

o End User take-up and revenues per customer over the life of the Project;

End user take up is 25% and average revenue per customer over the life of the

project is £2,746.

o Key cost and revenue drivers;

Capital is the principal cost identified in the area investment worksheet.

Take-up is identified above.

Package mix and take up of value added services (VOIP) will change ARPU, further discussed below and tested in the sensitivity worksheet in the commercial model.

Vary the wholesale/retail split has a noticeable impact, current assumptions based

on current experience, 10% wholesale, 90% retail. All tested in the sensitivity worksheet on the commercial model.

Churn is within the expectation of current Ka experience.

The low volume of customers means all these variables have a significant impact.

o Milestone delivery timescales;

This is included in the commercial model and separately in the Solutions Design Update.

Clearly identifies the following:

o The Supplier's internal rate of return in relation to the Project and the term over which this is calculated;


The IRR with public funding is 246% over the 7 year period. This needs to be

treated with caution given the low number of customers.

o The payback period

The payback period for the Supplier with public funding is 1.4

o The capital cost to be incurred per premise;

SI average investment per customer is £222 per connected customer (54), identified in the Area Investment worksheet in the commercial model. Investment

will change depending on the chosen technologies in the areas to be piloted.

o The requirement for Authority funding in relation to each premise;

The public authority funding is £1,074 per connected premise, identified in the Area Investment worksheet in the commercial model. This will change depending

on the chosen technologies in the areas to be piloted. DTH only, funding would be up to £400 per connection.

The commercial Model has three input worksheets (with Boxed fields), used to model various scenarios in

order to establish the outcome;

5.2 Sensitivity analysis on existing customer data

We used our current customer behaviour to check the sensitivity of key cost and revenue drivers (Upfront costs and Subscription costs). This learning has informed the model.

During the 2012 and 2013, Ka services were launched with some operators deciding to subsidise the

equipment. At that time, SI cost was £299 plus installation and activation. During this period the

competition’s customer base grew year on year whereas our customer growth slowed.

In March 2013, Satellite Internet launched Ka services in England and Wales. We decided to lower the cost of entry. The Customer reaction to these new Ka services has been analysed to establish Cost Drivers for

the Commercial model.

Equipment and Installation costs have a dramatic effect in changing demand.

Prices were set:

SLA per month

inc VAT FreeZone VoIP

Equipment 2 Year

Contract

All Upfront

Costs

04M3V+ £15.95 Included £7.00 £99.95 £398.90

10M5V+ £24.95 Included £7.00 £49.95 £348.90

20M10V+ £29.95 Included £7.00 £29.95 £328.90

20M20V+ £39.95 Included £7.00 Free £298.95

20M30V+ £49.95 Included £7.00 Free £298.95

20M50V+ £59.95 Included £7.00 Free £298.95

20MXL £69.95 Included £7.00 Free £298.95

SLA names describe the speed and Data Allowance e.g. 20M10 is up to 20 Mbps (Megabits per second) with a data allowance of 10GB (Gigabytes) in a month. FreeZone is unlimited data from 11pm to 7am and, while

a previously chargeable option, was in this period included as part of overall promotional effort. At the


same time the Welsh Government were subsidising and had continued to subsidise the Equipment, Installation and Activation. This change did have a negative effect on cash flow but From April 2013 to

December 2013, resulted in a steady growth of connection numbers.

In December 2013, Satellite Internet changed the prices to reflect the market’s lower headline monthly

subscriptions and lowered the entry subscription level from £15.95 to £9.95. The higher level subscriptions remained unchanged. To compensate for lower monthly subscriptions, lower subsidy could be given on the upfront equipment costs and previously bundled options (e.g. FreeZone) reverted to being

chargeable.

Prices were set:

SLA per

month inc VAT

FreeZone VoIP Equipment

1 Year Contract

All Upfront

Costs

Upfront cost

increase

04M3V+ £9.95 £6.00 £7.00 £229.00 £427.95 7.3%

10M5V+ £19.95 £7.00 £7.00 £229.00 £427.95 23%

20M10V+ £22.95 £7.00 £7.00 £229.00 £427.95 30%

20M20V+ £34.95 £7.00 £7.00 £229.00 £427.95 43%

20M30V+ £49.95 £15.00 £7.00 £229.00 £427.95 43%

20M50V+ £59.95 £15.00 £7.00 £229.00 £427.95 43%

20MXL £69.95 FOC £7.00 £229.00 £427.95 43%

Conclusion:

1. Month on Month sales growth reduced by 30% due to the increased cost of Equipment

demonstrating that upfront costs affect demand.

2. In November, End Users in Wales were 33% of Sales and in July 2014, they were 31%. The growth

in Wales slowed because the subsidy of free Equipment, Activation and Installation came to an end, further evidence of upfront costs affecting demand.

3. Subscription price did not seem to affect choice. The sale mix by SLA did not change despite the

lower prices of the smaller packages;

4. However, 14% of new sales were Value Added Services (VAS), being FreeZone and VoIP, even

though FreeZone was now an added cost. On top of this, 20% of all subscribers bought a reset or upgrade in service level.

5. 58% of End Uses paid between £23 - £35 per month for the middle SLA’s and 20% of End Users

were prepared to pay above £50 per month for 50GB of Data or more.

6. End Users are prepared to pay an upfront cost but are deterred if it’s set too high. Ongoing prices

had a less effect on their decisions. We have decided to test the upfront costs for the pilot at £99.95.

7. The new Ka based services have shown a dramatic reduction in churn.

8. “Take up rate” is not a meaningful measure for DTH VSAT satellite because it is installed

site-by-site. The CPE capex is only expended when the customer requires connection and not before – in that sense, the “take up rate” is 100%. The SDN model does have a take-up rate metric but the granularity on capex is much smaller than terrestrial as only some tens of connections are required per node.


9. The exercise also gave useful feedback on our services and product and the sensitivity on pricing

and how it affects demand and choice of SLA.

5.3 The Commercial model explained

Two Commercial models were:

1) The Commercial Model referred to in this document, V1.0 Feasibility - Pilot Commercial Model

Version 1.xlsx. This model feeds into the BDUK template.

2) BDUK template model, V1.0 Feasibility -BDUK_Pilot_Projects_Commercial_Model.xlsx

A publishable version was submitted to BDUK using their template as requested.

5.3.1 Area Investment

The original plan was based on 800 properties with a 25% take-up resulting in 200 customers. The assumed a split between technologies, SDN Access: DTH Access is 75%: 25%. This worksheet can be used

to change the number of properties along with the percentage take-up and technology split which feeds through to the Operating model. There are columns indicating the investment needed for each area along

with initial outputs:

a) Total Investment per property

b) Number of sites needed during the Pilot to breakeven using annualised data

c) The payback period with or without funding

We have modelled the three deployed pilot areas, Simonsbath, Luxborough in Exmoor and Priddy in

Mendip Heights.

5.3.2 Sensitivity Analysis

Assumptions used;

1. 10% of Revenue is via ISPs (Retail Service Providers) who receive a discount of 15% from Retail price. This is our offer to current ISPs/RSPs, has been accepted by them and is consistent with industry

practice for this type of service. We therefore believe our offer matches the market. ISP/RSP Accounts in July 2014 were 10% of the total accounts.

2. Churn is set at 8%. This can be changed to see the effect. There is the option to test the effect of a

percentage price increase along with the reduced demand. These changes feed through to the cost Drivers. We can change assumptions and monitor the effect.

3. End Uses make an upfront payment of £99.95 including VAT. This may be varied depending on the

choice of service.

4. Change in mix of Subscription packages feeds into the cost driver worksheet. Output identifies effect on the Revenue per User, the Gross Profit (GP) per User and the change in Return, ROS, IRR and importantly Payback Period. Our model, in Revenue & Cost Drivers worksheet, currently shows Retail Revenue per user to be £37.57 per month. Total Retail Revenue is reflected separately in the Operational worksheet.

5. Change in Price, lowering demand. Output Identifies effect on the RPU, the GP per User and the change in Return, ROS, IRR and importantly Payback Period. As the number of Users might also

change, it shows the change in Capital Investment per user and Authority Funding per user.


6. Change in the Retail / Wholesale Sales Mix. Output Identifies effect on the Rev per User, the GP per

User and the change in Return, ROS, IRR and importantly Payback. A change in the Retail / Wholesale

Mix would affect this output.

7. Change in the ISP/RSP Prices (model used discount from Retail). Both Output identifies effect on the

Rev per User, the GP per User and the change in Return, ROS, IRR and importantly Payback Period. Our model, in Revenue & Cost Drivers worksheet, currently shows Revenue per user from Wholesaler End Users to be £31.94 per month. Total wholesaler Revenue is reflected separately in the Operational

worksheet.

5.3.3 Revenue / Cost Drivers

Taken from the Lessons learnt from our current customer behaviour, the assumption is that 45% of subscription revenue will be the low data package.

Package prices per month are;

Data Allowance Retail inc VAT ISP/RSP ex VAT

5 GB £22.95 £16.25

20 GB £42.50 £30.10

50 GB £69.95 £49.55

FreeZone option £7 £4.96

VOIP option £7 £4.96

It is assumed that Optional Value Added Sales (VAS), being VoIP or Additional data allowance at night known as FreeZone, will add 15% to Revenue. These changes feed through to the Operational Statement.

These package rates have been selected based on current customer behaviour at acceptable price points.

5.3.4 Affordability and Capex

We note the following price assumptions stated in BDUK’s notes to the EU State Aid notification on the UK’s National Broadband Scheme:

Access to basic broadband infrastructure is not affordable if the installation cost is £100+ and/or

the rental price is £25+.

BDUK is working at present on the basis that access to NGA broadband infrastructure is not affordable if the installation cost is £200+ and/or the monthly rental price is £30 - £50+.

The installation cost is, effectively, the contribution by the end-user to the capex required to provide the

connection. Satellite capex does not, generally, vary greatly due to distance from the exchange or node as it does not require the civil works as needed by physical cables or fibre. That means a planning figure of around £400 - £600 per site can be considered fairly robust. How much of this “per site” figure is

considered to be installation charge to the customer and how much is the required capex support

depends on the design of the individual project.

In other words, if a higher capex support is decided, then the installation cost can be reduced (and hence

take-up increased). Alternatively if local conditions mean higher installation is acceptable to the consumer, subsidy requirement is less. “Affordability” is a flexible result according to the level of subsidy being considered for the capex.

For this study and model, it has been assumed the installation cost will be below BDUK’s “affordable” figure for basic broadband (2Mbps) even though the service is Superfast (up to 25Mbps).


The subscription cost per month also is below the “basic affordable” criterion for the entry level service.

It should be noted that the extra cost of a terrestrial telephony line rental is not required for this

broadband service.

5.3.5 Other points

The model is monthly for the 1st 12 months. The other 6 years are the 12th Month annualised. There are no ongoing variances after 12 months except churn.

Milestones have been added and the Deployment Milestones correlate to the Capital Investment and user take-up on the Operational statement.

The Operational model feeds to the Return Analysis worksheet (without Funding). This also

identifies the estimated reinvestment needed in the 7th year. The worksheet shows that funding is crucial in keeping the final subscription prices low. The improved Payback period indicated in the worksheet names, “Return Analysis Funding worksheet, where the Capital Investment has been lowered by the funding received.

The model includes IRR as required but for Satellite Internet, being the subsidiary of an Owner Managed

Company, the key to investment decisions (affecting the risk appetite of the Parent Company) is the

payback period and the commercial model reflects this. The ratio of connections to homes passed is very small for satellite and assuming a 2 year contract, churn increases the risk to recovery of the investment.

Capital investment for DTH, in reality, is linked to each connection and so must be recovered well within

the 2 years. “Take-up rate” is, as outlined above, not a very relevant measure for satellite networks.

5.3.6 Deployment Milestones

All though the commercial model still shows the deployment in line with the original milestone dates,

ensuring that all the numbers flow, we have made a revision in the milestone worksheet. These milestone dates will need to be adjusted by 3 months after the decision date for proceeding.

5.3.7 Learnings from Commercial model applied in Pilot Areas

5.3.7.1 Table 1: summary of the key parameters submitted in April to DCMS

Key Parameters Original Plan

Premises 200

Premises connected 200 or 25%

SDN / DTH 100%

Capital Node 100% state funded

Wifi CPE Shared

DTH installs Shared

Connection charge £99.95

Average monthly rental (Retail)

(ref Rev per month in Cost Drivers

worksheet)

£32.67 + VAS services

Payback to SI period with funding 1.0 years

Breakeven to SI without funding 4.0 years

Breakeven (customers) 122

State Funding £77,250 £21,375 per node


We have assumed it takes 5 months to recruit the customer base for the SDN and 4 months for DTH customers.

Note the breakeven period without state funding would not be acceptable to a privately funded company. This was identified in the SI application to the Innovation Fund.

We have used the same model to generate data for the three chosen areas, Simonsbath, Luxborough and Priddy. The output is summarised in Table 2. This is included in the submitted commercial model so further amendments can be made.

5.3.7.2 Table 2: Base case assumptions applied to Pilot Areas.

(Unless stated, reference to Area Investment worksheet and the geographies provided assume a mix of

SDN connected and direct access connected)

Key Parameters Full Capacity

Node

Luxborough Simonsbath Priddy

Premises 200 91 38 83

Premises connected 200 or 25% 23 10 21

SDN Access / DTH Access 75% / 25% << << <<


<< << <<

Wifi CPE shared << << <<

Direct Access installs shared << << <<

Connect charge £99.95 << << <<

Average monthly rental

(ref Cost Drivers worksheet)

£32.67 + options << << <<

Payback period with state

funding

0.7 years 1.0 Years 0.9 Years 1.0 Years

Private Investment Per customer connected

£131.25 £133.13 £122.50 £129.14

Public subsidy per customer

connected

£386.25 £872.30 £1,822.5 £938.71

The areas provided in the Pilot Project have fewer premises within the “white area” catchment boundaries

than the model in the original submission. So to achieve the same numbers of connections needs a

commensurate higher uptake or increased “per-premise” capex subsidy. In Table 2 we have summarised the impact.

Table 3 models a 70% take-up.

5.3.7.3 Table 3 Illustration of 70% take-up

Key Parameters Luxborough Simonsbath Priddy

Premises 91 38 83

Premises connected 70% 64 27 58

SDN Access / DTH Access 75%/25% 75%/25% 75%/25%


100% state funded

100% state funded

Wifi CPE shared shared shared

Direct Access installs shared shared shared


Connection charge 100% public

funded

ARPU ref Cost Drivers worksheet

£32.67 + options £32.67 + options

£32.67 + options

Payback period 1.0 1.0 1.0

Private Investment per customer

£131.25 £131.25 £131.85

Public Investment per Customer connected

£396.88 £762.52 £422.81

5.3.8 Geotype Classifications

We have identified the number of SCOU’s (self-contained units of occupation) in the radius of the coverage

of a headend (3km radius). Potential take-up is shown on the table below.

Geotype SCUO in 28km2

3KM Radius

If Take-up is 25%,

connections

Village 129 32

Peri-urban 784 196

Village envelope 190 48

Village envelope (in peri-urban) 518 130

Hamlet 67 17

Scattered dwellings 73 18

Definitions of the geotypes were taken from the Office for National Statistics document, “Urban and Rural

Area Definitions for Policy Purposes in England and Wales: Methodology (V1.0).

The cost of the investment could be reduced, dependant on Geotype, Terrain, etc., investment being dependant on total equipment needed to cover the area, plus the size of survey needed.

Based on the headend capacity of 50 connections, the actual cost per connection could reduce dependant

on geo factors. The table below is an indicative example and could be further analysed during deployment.

Terrain / Geo type

Village envelope

Village

Scattered dwellings

Hamlet

Hill £515 £509 £506 £503

Valley £491 £485 £482 £479

Depression £467 £461 £458 £455

Furthermore the number and size of the areas could increase as more areas move from the ‘under

evaluation’ status. There is also the case where fixed wireless solutions or indeed village FTTP are being implemented and need a temporary backhaul solution.

There is a worksheet in the Commercial model which maps the Incremental Investment by connection

compared to the Incremental Income over 6 years and which establishes the number of properties needed before the Income exceeds the Investment.

5.3.9 Income versus Capital Table

BDUK requested an income versus capital table so a breakeven point could be easily identified for the SDN

solution.


The table below highlights the breakeven point with public funding for areas modelled.

(Cost-per-site comparisons for SDN vs DTH are given earlier in the Summary.)

5.4 Financial Viability

5.4.1 Cost data – Backhaul Capex vs Opex

The Capex and Opex costs for the satellite operator are included within the service costs charged by SBBS to Satellite Internet.

With the new system integrating SDN and DTH to offer the same SLA to users across both platforms, the

backhaul costs are the same per user/SLA. This is a) new and b) unique to this platform as proposed in this Pilot. The SLA is the same no matter if delivered by satellite direct (DTH) or SDN (satellite distribution

node) as it is managed per end user CPE IP address.

The business model for satellite operators is to lease bandwidth to service providers using internationally

authorised frequencies at internationally approved orbital positions transmitting to areas (“footprints”) on the earth.

The two key concepts are:

Space Segment o Capex: build, launch, insure satellites carrying transponders – the in-orbit capability

o Opex: maintaining the capability to communicate with and control the satellite(s) and transponders

Earth (Ground) Segment o Capex: building the teleports to control and uplink to / downlink from the satellites and

terrestrial connections to TV, data and internet

£0

£5,000

£10,000

£15,000

£20,000

£25,000

£30,000

£35,000

£40,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49

GB

P

No of Connections

Income Vs Capital

Total Capital Income 6 Years


o Opex: running the Earth segment so that it can communicate with and control the

satellite(s), transponders and terrestrial connections (boundary between Earth Segment

and Space Segment Opex is necessarily blurred)

Typical services are:

Television & Radio Broadcast

Satellite Internet

Private Data Services

Such leases vary from space segment only to fully-managed and include many variants in-between. Leases can be contracted for continual service, life-of-satellite, annually or shorter periods. Bandwidth

can be contracted for multiple transponders, transponders, frequencies, bitstream or fully-connected IP services.

1. Space Segment: lease of the entire bandwidth of one or more transponders at a given position.

Satellite operator commits to making that bandwidth available; customer makes own

arrangements to uplink signal to satellites (via earth station hub).

2. Uplinking (TV): TV broadcaster delivers 1 or more channels to earth station which then contracts to uplink to relevant satellites from their earth station hub.

3. Fully managed IP: satellite operator provides space segment, uplink facilities and also connectivity to internet backbone via hosted platform. Service provider commits to local management infrastructure.

The value of the Space Segment depends on both the capabilities of the Ground Segment which can serve

it and the number of consumer sites that can receive it.

The Capex and Opex costs for each model are rolled into the business case for each type of lease

depending on level of service, length of lease and ground segment services required.

In the business case for Satellite Internet, the costs include the charges made by the operator for Capex and Opex of their part of the system: the satellites, teleport, uplinks, ground segment and connectivity to

the internet backbone.

Lower Opex could be achieved by committing to longer leases of more of the Ground and Satellite Segment: e.g. leasing an entire transponder for the life of the satellite which involves a very large

commitment quantum (some millions of Euros per year committed for a 12 year lease). The flexibility of

leasing connections at an individual level reduces this to “pay for what you use” at least on an annual level.

Satellite Internet has submitted a Commercial Model which reflects our existing commercial arrangements with SBBS. Satellite Internet invests in the Capex and Opex for local infrastructure:

Wholesale / Retail Platform

National Payment Platform

National Installation Network

CPE Connection

SDN Headends


Satellite Internet has included the full cost details reflecting charges made by SBBS for provision of their:

Space Segment

Ground Segment

Multimedia Operations (inc Internet connectivity)

In other words, everything needed for the satellite connection from the internet backbone to our user.

Satellite Internet takes care of the local connection, installation, retailing, billing, management and

customer service: everything from the satellite to end user.

This cost schedule is the same whether the service is delivered to a satellite DTH CPE or via a satellite distribution node + LAN CPE (in this case, Wifi).

The cost to provide that connection locally is “our” capex and we need to balance the two modes to best effect:

SDN needs Headend Capex (and some Opex) but CPE is cheaper

DTH does not need Headend Capex but CPE is more expensive

So, specifically, the full cost details associated with the satellite backhaul (both opex and amortised capex) are included in the costs SBBS charge Satellite Internet for provision of a single account SLA be it

via DTH or SDN. This is included in our Commercial Model as submitted.

Reducing Opex per capita could be possible by committing to longer leases on more bandwidth for more

end-users in advance.

5.4.2 Financial Viability – Parent Funding

The BDUK Commercial Model template forecast a small (c£11k) reliance on short-term funding from

Satellite Internet’s parent company for the areas modelled. Satellite Internet’s parent company has confirmed that this short-term funding is available for the project.

5.5 Issues Encountered and Lessons Learned about the Final 5%

5.5.1 Identifying and Engaging the Intervention Area

The first issue is that the “final 5%” is not a hard and fast number but will vary from Local Body to Local

Body. The actual % at the edge which is not covered by current definite programmes could be 1 or 2% in

some areas and over 10% in others. However, it’s a useful shorthand label for those areas which, not being included in current roll-out plans, require further intervention: be they Basic Broadband White, NGA White, No-Build or In-fill.

The NGA programme has raised expectations but the lack of hard information on the actual rollout at the

edge of the network means it is still not clear to those at the edge whether they will or will not be covered. Those who will not benefit from the current rollout will need a different solution or risk waiting for ever for

a solution that is not coming.

It is apparent that serving the final % is achievable only through a mix of technologies. CD&S have identified ‘infill’ and areas ‘under evaluation’ within their final %. The decision to begin a dialogue with

that 5% is problematic as that will require planning to prepare and agree messages to the final 5% about the nature of the solution likely to be available to their area. This is certainly evident in the time it has taken to identify specific areas. It is also evident in the nature of the draft material SI are preparing to engage with the pilot areas.


SI experience is that it is easier to begin with the final 1% where there is little ambiguity regarding the availability (now or in future) of Basic / Superfast / NGA broadband. DTH Satellite Internet services remain

the only realistic option for isolated homesteads in sparsely populated areas. Accepting this in itself can be quite a step for a Superfast programme. The time spent discussing premises, post codes and geotypes

with CD&S has highlighted the growing understanding amongst policy-makers that:

1. the 5% problem remains

2. it needs attention

3. it needs many technologies, and

4. the messaging is complex and needs attention to maintain a positive context within Superfast and

NGA messages so far

5. users need to understand that fibre may not reach them and a different solution is required

From Satellite Internet’s perspective, the CD&S selection of a subset of their in-fill area would suggest we have to begin the discussion at the absolute edge and work inwards – “outside-in” as it is described. This suggests and our commercial model and the surveys shows that isolated homesteads in sparsely

populated areas will need to use a direct access satellite service to achieve an even basic broadband

service.

There is a dilemma between the need to engage in direct activity in the field in order to get a better feasibility study and the desire not to excite the local areas for solutions which may not, in the end, be deployed in their areas. For example, a number of potential areas were discussed but only 3 could be

chosen eventually. This could cause issues with those areas not selected. In order to avoid this, in-field

activity was re-planned into deployment phase which has the effect of lengthening this phase.

Note: the relationship between being in the last percentiles of reach (or “edgeness”) and

village/hamlet/isolated homestead is not exact – but can be used illustratively.

5.5.2 Scoping and De-Scoping

Areas which have been identified as falling within the scope of a Local Body’s “final %” will need to be checked that they are not in the scope of any existing arrangements and, where necessary “de-scoped”

appropriately. Some roll-out programmes were based on blanket coverage assumptions and it is only now

that it’s becoming apparent that some areas within the original overall plan require different technologies for cost-effective – or, indeed, any, solution. A mechanism will need to be found to allow those areas to be dealt with under a “final %” programme.

5.5.3 Isolated Homesteads - Final 2-1% (reach 99-100%)

A strategy to use DTH satellite to meet basic and superfast broadband service should be acknowledged for

the final 1% - 2% as this is the most cost-effective method of reaching isolated homesteads.

The traditional means of supporting satellite services is to help with a connection fee (for example,

support of CPE capex), which is one option. However if this is the start of a national initiative then alternative support measures should be explored before any final procurement programme. For example, commitment to higher volumes could result in the reduction of CPE cost. Use of individual vouchers or grants, as in Wales and France, can be very effective on targeting connection subsidy exactly where it is

required – even down to the premise level.


The deployment of the latest superfast service ought to contribute to the development not just of ‘in-fill’ internet access solution but discuss the possibility of a connectivity and communications solution proper

for this group of customers potentially including both TV and VOIP telephony.

5.5.4 Isolated Hamlets - Sparsely Populated Areas – Final 5-3% (reach 96-98%)

It is difficult to find Basic White areas containing as many premises as, for example, are in the contiguous villages and areas in the German deployments (~300 premises ~800 population). This is a result of using the “2Mbps” measure to define where the Superfast intervention can go.

If the Basic measure was increased, the Basic White areas would be bigger and the commercial model require less % take-up.

However, these small areas: Luxborough and Simonsbath in Exmoor, and Priddy in the Mendip Heights, are perfectly feasible to install SDN given an appropriate level of Capex support. This has been examined

in the commercial models and will be further tested during actual deployment.

5.5.5 Villages in the Final 10-6% (reach 91-95%)

Connecting Devon and Somerset provided materials on their experience with previous generation DTH satellite services. There was a sense that a programme supporting a single digit take-up amongst the target population was perhaps insufficient. There was also a sense that the pricing which did not match

special offers from telephony providers, but which excluded line rental was perceived to be high. This contrasts with our existing customer base for whom the existing pricing is broadly acceptable (by

definition).

This raises the importance of expectations and target setting and communicating the role of satellite as

part of the national solution.

SI are confident that Ka based services are now more sticky (dramatic reduction in churn) and those taking services are showing a willingness to pay a premium for higher data / speeds. Take up can certainly be influenced by reduced connection costs, but we cannot define one particular take up target figure as

this is very dependent on the number of premises a) within the wifi reach of the SDN headend which are

also b) defined as White Area.

5.5.6 Other points regarding Direct to Home (DTH) Satellite Solution

The direct access DTH service is unique compared to other technologies in so far as it delivers a consistent

performance to all users regardless of “line-length”. However there will be a need to see the relevant satellites at the 28.2E position.

In the drive-by surveys conducted of the areas being targeted for the deployed feasibility stage we did

record 3 properties on the Roadwater to Luxborough road where line of sight tests would need to be

confirmed.

5.6 Implementation Issues

Technically no implementation issues have been identified for either the SDN or the DTH VSAT other than those of which we already have experience in identifying and resolving: line-of-sight, CPE location.

5.7 Field Deployment Practicalities

The site visits to Germany have identified no practical issues to resolve.


SDN location requires accessible main power and to be suitable for installing the base station antennas / satellite dish. Preferably, the location will have a lockable indoor location for the small server rack in its

case.

Planning permission is a topic raised and assurance needs to be given according to current planning

guidelines (all dish sizes proposed are allowed). Clarification on masts if required for SDN needs to be sought at local level.

AONB and Conservation Areas may require visual amenity mitigation: for example dishes can be painted

and/or discreetly located.

Advice may need to be given for Listed Buildings. Usually suitable mounts (eg NPRM or ground mount) and

locations can be found for an acceptable install.

The 5GHz wifi needs (low cost) licence from OFCOM applied for the particular area.

5.8 Messaging

5.8.1 Satellite History / Received Wisdom

Earlier satellite systems did not have the performance delivered by today’s Ka systems. There can be some

resistance to satellite as a modern solution in areas where previous generations of systems have been tried – perhaps because of the higher costs / lower performance of such systems. This needs to be

addressed directly by accurately describing what satellite can now deliver and which applications deliver a good user experience.

Live demonstrations can be a very effective way of addressing this issue.

5.8.2 No Phone Line Required

Terrestrial broadband is now typically bundled with telephony line rental. Increasingly, telephone providers are using cheap broadband offers to persuade people to switch and sign up for another annual contract.

It is important to communicate that the choice of a satellite service does not need the cost of a line rental

and also does not tie in end users to a particular telephony provider. For those who have adequate mobile

coverage, the existence of a non-phone-line broadband service may represent an opportunity to save on line rental if no longer required.

5.8.3 Service Offering: Single, Double and Triple Play

VOIP can run over satellite broadband effectively. There is an element of delay similar to, and for the same reasons as, the international phone calls a few decades ago. For example, Skype audio and video calls are

practical. The SI service also offers a dedicated VOIP channel with RTP QoS for SIP-standard VOIP traffic

which does not use up normal data quota.

Satellite also broadcasts two UK Digital TV platforms: BSkyB –the leading subscription TV platform for the UK; and Freesat – the leading no-subscription TV platform. At the moment, these require a separate STB (set-top-box) and mini-dish but SES are developing IP technology which should allow local IP distribution within the home of compatible platforms.

The ability of satellite to deliver three services: broadband, VOIP telephony and TV is a positive message and allows end-users to have great flexibility of which services they want to get from which provider

without signing up for long-tern restrictive bundles.


5.8.4 Solution Availability

A key point is that satellite solutions are available on very short timescales. A DTH VSAT can be installed within days of order. A complete SDN Headend takes only a matter of a few weeks to install and commission. Once a decision has been taken to deploy, end-users can be connected up very quickly.

5.9 Customer Recruitment

This will be informed by the results of the studies to be carried out once in-field activity is approved.

5.10 Local Consultations

The Local Body responsible for the Broadband Plan needs to be involved at every stage of activity in their

area. They have invested already in messaging and communications within their local area and new

deployments need to be presented in this context.

We have discussed the possible need for customer consultations in a structured fashion with Local Organisations.

5.11 Lessons Learned on Performance and Traffic Management Study

SI have conducted a review of the theoretical possibilities of the performance of satellite services and

concluded that satellite services are best described in terms of delivering a defined user experience. This is defined as a Service Level Agreement (SLA) which includes maximum connection speeds, data volumes, FUP etc. We believe the current SLAs meet market demands and national requirements for Basic

Broadband and, with the SLAs for this Pilot, Superfast. These SLAs could define service parameters for any

national procurement / roll-out based on these Pilots.

The methods used to measure packet loss and jitter in fixed line broadband networks are not relevant to Satellite Internet Services as the data payload (throughput) is protected within an error-corrected

Transport Stream.

The statistical performance is dominated by delay (latency), which is known and understood. The focus

we concluded needs to concentrate on measuring customer satisfaction with the services delivered.

We have examined the Satellite Distribution Node deployment in Germany and concluded the

improvements in service over terrestrial are user experience based rather than any substantive statistical performance of the network.

Satellite services are delivering perfectly acceptable browsing, streaming and VOIP experiences consistent with the package and its service level agreement.

5.12 Lessons Learned Report - Conclusion

The most important Lesson Learned is that the original proposal does work – technically, practically and

commercially - when applied to the particular areas under discussion with the given levels of State Aid.

We have learned that deployment of the SDN node is technically and practically deliverable.

The move to the deployment phase is a good opportunity for SI and BDUK to deploy superfast satellite

services and glean as much information on the customer experience and customer satisfaction levels so as to inform longer term public policy making on meet the needs of isolated dwellings in the final %.

The target areas identified by Connecting Devon and Somerset provide good places to benchmark for

larger deployments in the region and in other regions.


6 Updated Solution Design

6.1 Objective

A Solution Design was submitted as part of our initial tender for the Pilot Project. This Solution Design was

updated as part of our July submission for the Pilot Project.

The Final Feasibility Report requires a further update to the Solution Design as specified in Schedule 1,

Para 2.1.2 Updated Solution Design. This Para specifies that other reports (e.g. Updated Solution Coverage and Updated Project Plan) are to be included in the Updated Solution Design whereas

previously they were submitted separately.

This Updated Solution Design is intended to fulfil the requirements of Schedule 1 – Pilot Feasibility

Deliverables – Para 2.1.2 – Updated Solution Design as part of the Final Feasibility Report


Solution Design for Satellite SDN (Satellite Backhaul + Local Wifi Subdistribution)

o 3 x SDN Headends each with 50 End User sites including CPE

Solution Design for Individual Dish Direct Access (DTH / VSAT)

o 50 End-User sites each with their own VSAT (termed DTH “Direct to Home”)

Note: SDN stands for Satellite Distribution Node and refers to the system which uses a single VSAT terminal to provide a “backhaul” via satellite which is then subdistributed via a local network – in this

project, via wifi.

Note: VSAT stands for “Very Small Aperture Terminal” and refers to the dish/transceiver/satmodem as typically used in satellite internet of this type. Both the SDN and the DTH systems use VSATs: in the case of SDN, one is used at the Headend (where the VSAT and Wifi antennas are) and in the Direct case, a single

VSAT is installed at each End User site for a direct connection – hence “Direct To Home” or DTH.

6.2 Contract Definitions

Relevant section is Para 2.1.2 – Updated Solution Design from Schedule 1 of the Pilot Feasibility Deliverables – an updated solution design which:

6.2.1 (a) – Schedule 3

a) progresses the solution design set out in Schedule 3;

Schedule 3 specifies the original Supplier’s response as we submitted to Part 2 of Appendix A of the ITT

6.2.2 (b) - Updated Solution Coverage Forecast

b) includes an updated solution coverage forecast based on the learning gained prior to the preparation

of the Pilot Feasibility Report, in particular setting out the assumed number of residential and business premises to be passed and the number of End Users anticipated to participate in the Project;

6.2.3 (c) Updated Project Plan

c) includes an updated Project Plan;


6.3 Supplier Solution – Updated Design

The principle of the Supplier Solution as proposed has been validated and updated against the

requirements of the Pilot Project as advised.

We undertook a study visit to one of the SDN sites in Germany (Newel). This included a detailed meeting with the project team for the site from SBBS who had proposed and implemented the project at that

village. This confirmed our equipment specification as proposed.

We have discussed and confirmed the actual SLAs (Service Level Agreements) to be offered. These define

the speed (up to 25Mbps) and data traffic allowances for each subscription type, along with options such as FreeZone and VOIP. They are based on UK experience of DTH up to 20MBps as in the market, plus the

actual SLAs deployed in German SDN systems implemented by SBBS. This confirms the technical ability of both SDN and DTH systems to offer the same SLAs – this concept is being offered for the first time as part

of this Pilot.

We have confirmed Newtec equipment availability for the SDN Headends and also the customised

performance enhancing proxy application and the CPE / SLA control system which activates individual CPE access to the system at the chosen SLA.

We have confirmed with SBBS that the relevant hub is ready to have the UK Pilot SDN Headends deployed.

We have confirmed availability of the new generation of DTH / VSAT satmodems with the manufacturer, Gilat, and also the timing of the upgrade process at the hub to enable those satmodems to be deployed.

The timing for this fits within the revised Deployment plan (i.e. 2 to 3 months from deployment approval).

We have held initial meetings, Project Board and teleconferences with the Host Local Body selected by

BDUK: Connecting Devon & Somerset (CD&S). We consider that the Solution is valid for their general area

and processes (e.g. demand stimulation and messaging in the areas chosen).

CD&S have proposed a number of Pilot Areas with different geotypes. They have suggested that the initial focus should be on Exmoor as this has an active local partner for activities in area (Exmoor National Park)

and discussions have been held with them. Other Areas to extend the geotypes available have also been

investigated (e.g. in the Mendips). We have carried out both desk and initial “drive-by” surveys and discussed with our local installation team. Specific location surveys of headend, wifi and CPE can’t be

carried out until CD&S approve local activities however, the Supplier Solution remains generally valid for these areas.

6.3.1 Solution Design

As per Schedule 3 of the contract, this: (a) progresses the solution design as set out in our Appendix A

Part 2 of our original proposal. This paper describes all main components of a satellite internet service, including the intended components to be used in the deployed pilot.

The Satellite Internet Service is an always-on two-way satellite based broadband internet access service and is the ideal solution to bring fast, reliable and affordable Internet connectivity to those areas where

the terrestrial networks – such as ADSL or cable - are poor, limited or non-existing. The satellite services

are not affected by population density and can play a full part to meet the needs of users whom others cannot reach. It is an ideal solution for the final 5% challenge faced by BDUK.

The end-to-end technical solution proposed in our Pilot is satellite delivery of an internet connection from a carrier-grade interconnect hub on the European backbone to CPE either directly (in the case of sites with

an individual dish “DTH” or “Direct to Home”) or via a local network. This infrastructure uses Ka band to


provide a connection from the hub in Betzdorf to either an individual dish and satmodem or a local hub for subdistribution by wifi or DSLAM:

Satellite to Local Hub (SDN)

o Subdistribution by Wifi network to End User

Satellite Direct to End User (DTH)

The satellite system is operated by SES Broadband Services using 2 of their satellites ASTRA 2E and

ASTRA 2F. The satellites were manufactured by Astrium Ltd (part of EADS) in Stevenage, UK. These satellites are the equivalent of “the middle mile”.

Both the SDN Solution and the DTH solution use the SBBS operating platform from SES. An outline of this

infrastructure follows.

6.3.1.1 Satellite Operator – SES Broadband Services

Société Européene des Satellites (SES) is one of the world’s leading satellite operators covering 99% of the world’s population. SES owns and operates 56 geostationary satellites providing reliable and secure satellite communications solutions to broadcast, telecom, corporate and government customers

worldwide.

SES Broadband Services (SBBS), is a 100% owned subsidiary of SES. SBBS owns and manages the ASTRAConnect service, which is a cost efficient and reliable high-speed broadband internet connectivity network via satellite.


Satellite Internet (SI) is a long term UK partner for SBBS and acts as a retail distributor in the UK.

6.3.1.2 Satellite Infrastructure

Located in Luxembourg, SES and SBBS provide all satellite operations and technical services which

underwrite Satellite Internet’s internet service in the UK.

In order to connect to the Internet, the end user needs to install at his/her premises a low cost, easy to install terminal (satellite dish and modem). SI have contracted with SBBS wholesale broadband Internet

connectivity out of its Betzdorf facilities in Luxembourg.

The overall SES/SBBS service contains the following three service components:

Provision and operation of the satellite internet service platform.

Provision and operation of uplink/downlink services for the SES satellite system.

Provision of satellite capacity on the SES satellite system at the 28.2°E orbital positions.

A detailed description of the SBBS Infrastructure and ASTRAConnect Platform is given in an Appendix.

6.3.1.3 Satellite Configuration

Satellite Internet broadband services are offered in Ka-band on the satellites:

ASTRA 2E (England, Scotland, Orkney and Shetland Islands)

ASTRA 2F (England, Wales, Northern Ireland, Channel Isles)

Both satellites are positioned at 28.2°E. The baseline dish size for broadband on those satellites is 75cm.

6.3.1.4 SLAs for Broadband Internet

Our current Ka-band offer for broadband internet service is composed of a wide selection of service packages with different monthly data volume allowances and peak speeds in Forward and Return ranging from:

up to 20 Mbit/s in downstream

up to 0.5 to 2 Mbit/s in upstream

As part of the deployed pilot, Satellite Internet will be the first to deploy the 25Mbps SLAs over SDN outside Germany.


As part of the deployed pilot Satellite Internet will be the first to deploy the 40Mbps capable satmodem, the Gemini series from Gilat. This modem will support up to 25Mbps access speeds for DTH in the pilot.

Apart from the peak speeds in up and downstream, the other two parameters defining the Service Level Agreement (SLA) are:

Quality of Service (QoS), defined as allocated Mbit/s per 1000 subscribers.

Fair Use Policy (FUP). This mechanism prevents bandwidth abuses by limiting the speed of connection under extreme heavy use conditions.

6.3.1.5 Solution 1 - Satellite Distribution Node (SDN) for Villages

SDN is a specific solution to provide small communities (between 50 and 200 end-users) directly with

satellite-based broadband service via last mile infrastructure.

The Pilot Proposal included 3 individual SDN Headends with 50 sets of Wifi CPE for each Headend. These Headends can be installed in 3 separate communities and serve up to 50 sites each or aggregated to serve

a larger area with up to 150 connections.

The Pilot Project Areas as defined mean the former will be deployed: 3 Headends in 3 areas each with max

50 CPE (total of 150 via all 3 SDNs) plus 50 DTH VSATs to serve outlying premises.

An SDN system consists of:

satellite infrastructure: the ASTRAConnect platform: internet gateway, hub, uplink, satellite

SDN Headend – the Head End with satellite VSAT, satmodem, gateway and PEP feeding

Wifi Base station and thence CPE

SDN enables two-way broadband access via satellite to entire villages by means of a single satellite dish. The satellite terminal is used to connect a terrestrial aggregation point (typically a Wifi access point) to the Internet. All end users connected to the aggregation point can be individually managed by the operator

regardless of the last mile technology.

With this hybrid Wifi-satellite solution, the end users are provided with broadband internet within the surrounding wireless coverage area via an indoor access point. Every user within the reach of the wireless

network benefits from the solution without the need for an individual satellite dish.


For the purposes of the deployed trial the following components will be used to create the end to end service.

6.3.1.6 Newtec Satellite Modem

The Newtec MDM3100 IP Satellite Modem is a two-way, high throughput modem supporting a wide range of IP Services like internet/intranet access, VoIP, enterprise connectivity and multicasting services. Its ease of installation and high performance modulation techniques enable network operators to offer bandwidth

intensive IP broadband services in a cost effective way. It is perfectly fitted to Small and Medium

Enterprises (SME) as well as large enterprises organizations.

It can handle up to 45 Mbps in the download and 8 Mbps in the

upload depending on the selected return access scheme.

For a true broadband experience, the IP satellite modem incorporates the most efficient technologies available, such as:

DVB-S2 Adaptive Coding Modulation (ACM) and Clean Channel Technology in the Forward link9,

Multiple access technologies in the Return link enabling flexible switching between:

Adaptive MF-TDMA with advanced 4CPM modulation suitable for consumer-type services with high sharing/overbooking

Mx-DMA with high resolution coding (HRC) appropriate for Enterprise and Government services for

shared services with low overbooking ratios

SCPC for services requiring fixed capacity channels10

Embedded acceleration, compression and encryption.

The MDM3100 operates as an IP bridge or IP router, forwarding IP traffic between the air interface and the

Ethernet interface.

The MDM3100 implements a dual stack IPv4/IPv6 solution and supports networks where both IPv4 and IPv6 access is needed.

A DHCP proxy is implemented in the IP modem. This proxy can automatically allocate one (bridge mode)

or more (router mode) IP addresses to devices (e.g. PC), which are connected to the Ethernet interface of

the IP modem. The MDM3100 also includes an embedded DNS proxy.

The MDM3100 has embedded TCP acceleration, DNS caching and Web page pre-fetching. The use of TCP

acceleration overcomes to a large extent the inherent deficiencies of TCP/IP over satellite networks. Widely used applications, such as web-browsing and HTTP file transfers, benefit tremendously from TCP acceleration and pre-fetching. Web-page pre-fetching enables faster access to web sites.

The CPU embedded in the MDM3100 modem is capable of handling up to 1,500 simultaneous TCP sessions. This is translated by a recommended no. of fifteen (15) concurrent accelerated HTTP

workstations. The terminal includes 4-GbE interfaces.

The ODU (Outdoor Unit) connecting the MDM3100 to the satellite is a Newtec VSAT comprising a 98cm dish

and a Newtec 3W BUC. The IDU system is completed by a 1u server Tellitec s/w Gateway (the PEP device).


6.3.1.7 Headend Installation Examples

At Newel:

At Greimerath:

The SDN Head End Outdoor Unit can be sited on a mast or roof mount.

Dish / Transceiver

Wifi Antennas

The SDN Indoor Unit requires a small lockable rack near to normal mains power.

Satmodem

PEP device


6.3.1.8 Wireless Headend and CPE for Wireless Access.

The SDN systems as deployed in Germany use Ubiquiti equipment and we have decided to do the same for compatibility reasons on the initial

deployment. Our installing company has extensive experience with Ubiquiti.

Some later deployments in Germany use Mikrotik. Other manufacturers’ wifi equipment may be deployed in future.

Home Antenna - Ubiquiti Sector Antenna 5GHz AirMAX MiMo 16dbi 120 Degree.

The Next-generation technology achieves gain, cross-pol isolation, and beam-shaping

characteristics rivalling the highest quality cellular carrier base station antennas in the world. They instantly pair with the Rocket M5 to create a powerful AirMax 2x2 MIMO PtMP Base Station.

Ubiquiti Networks Rocket M5 will be located at the Head End on the same mast as the dish. These units can be seen in the pictures just above the dish itself. On the customer premise, there is just the small

external wifi antenna feeding the internal Ethernet port by cable.

6.3.1.9 Technical Viability – Wireless Design Component, Transmission Equipment Specification

The wireless component for the Pilot Project is the Ubiquiti Networks Rocket M5

Base Station at the Headend serving Ubiquiti CPE terminals. This presents an Ethernet port at each site and has an option (chargeable) of a wifi access point if desired by the End-User.

The Ubiquiti hardware is in global use and has been deployed in the German

SDN systems – which is why we have selected it for the first SDN systems to be

installed under the BDUK Pilot. The system is open and can be deployed using any equivalent and licence-compliant wifi hardware (e.g. if a local wifi RSP uses a different manufacturer).

5GHz Wifi requires a (low-cost) OFCOM licence. Ubiquiti hardware is compliant.

6.3.1.10 Technical specification of the transmission equipment

The Ubiquiti Rocket M5 GPS, 5GHz Hi Power 2x2 MIMO AirMax TDMA is our nominated base station.

We design and build a simple point to multi-point network using the Rocket 5 as the Base station. This will

be attached to the 5GHz sector antenna with the Outdoor Unit of NanoStation, NanoBeam or LocoM CPE

being attached to each home and an ethernet cable run to the Indoor Unit with PoE (Power over Ethernet) and LAN Ethernet port. There is a wifi Access Point option.


Base Station ODU CPE IDU CPE & Wifi Access option

The system information and operating frequencies are:

The specified operating range is 50km while the access speed supported is up to 150Mbps. SI design combines the uses the Ubiquiti Sector Antenna 5Ghz Airmax Mimo 16dbi 90 degree pictured here.

Each home installation will use Ubiquiti 5GHz CPE (NanoStation, NanoBeam or LocoM according to survey) and (optional) Ubiquiti AirGateway Indoor AP.

6.3.1.11 Solution 2 – Direct to End Users - DTH

The proposal includes the first deployment of the Gilat SkyEdge II-c Gemini satmodem in the UK. This should allow implementation of the 25Mbps SLAs as proposed for SDN. It is capable of higher speeds when these become operationally available.


It is a 40Mbps capable high-throughput VSAT, designed to enable high speed broadband services. It enables fast web browsing,

video streaming, IPTV, VoIP, and other bandwidth-intensive services.

Gemini supports enhanced IP routing features such as DHCP, NAT/PAT and IGMP. Advanced application-based QoS guarantees the performance of real-time applications such as VoIP and video

streaming, while also supporting other data

applications. Gemini also supports next generation IPv6

networking. Gemini includes a full set of protocol

optimization and application acceleration features. TCP and HTTP protocol acceleration and payload

compression ensure fast Web browsing and high user

experience.

Gemini provides the highest level of transmission security supporting AES-256 bit link layer encryption

with dynamic key rotation to protect all user traffic, and standard IP-Sec providing end to end network layer security.

Gemini is designed to support quick & reliable installation, and automatic service activation. The process requires no prior VSAT installation skills or technical support. The outdoor electronics and antenna are designed to simplify the assembly and mounting, and shorten the antenna pointing procedure.

The outdoor unit (i.e. the antenna, the BUC and the LNB) includes an audio device to

guide and provide feedback during the

antenna pointing process. The indoor terminal (i.e. the Aries modem, size 200x176x34 mm) includes an intuitive web-

based Graphical User Interface to assist the

user during the final installation and service activation process.

The Gemini Ka-band CPE includes:

ODU: Transceiver 2.5W, 75cm

reflector & arm, Az/El Mount, cable

IDU: satmodem, PSU, F-connector, LAN cable 1m

Installation manual, Quick start leaflet, CD installation

The proposal includes 50 of these VSAT installations to cope with infill as required in the SDN (e.g. terrain

or line-of-site precluding easy wifi connection).


6.3.2 Technical Viability

6.3.2.1 Technical Viability – Installation Service Assumptions

Installation services will be needed to:

Install the SDN Headends

Install Wifi CPE for SDN Head Ends

Install DTH CPE for DTH sites

Service Calls (maintenance) for all the above.

As background, it should be noted that the UK satellite DTH TV installation industry has previously installed 750,000 – 1,000,000 new dishes per year to fulfil actual demand. Satellite Internet is not ten times more difficult, so 75,000 – 100,000 Satellite Internet connections (either SDN or DTH) are within the proven

capability of the UK industry.

Satellite Internet is part of the Eurosat Group which has more than 95% of the UK’s satellite dish installers

and installation companies as customers.

We have a national installation network with 9 regions carrying out installations from the Shetlands to the

Scilly Isles.

We have been connecting internet customers since 1997.

We are confident that the installation costs and resources we have included in our Commercial Model are realistic and sufficient for national roll-out.

For the Pilot Project in particular, we have carried out 2 “drive-by” surveys and confirmed our planning

schedule is realistic in consultations with our local installation partner:

SDN Headend: 2 days per Headend

SDN CPE: 3 – 4 CPE Installs per day

DTH: 2 CPE installs per day

The planning assumptions (based on real-world experience) therefore lead to the following resource

requirement for the Pilot Projects:

qty 1 x SDN Headends = 2 days per Headend

qty 50 CPE per SDN Headend = 17 – 13 days per Headend

for 3 Headends = 57 – 45 days

qty 50 DTH = 25 days

So as a “desk plan” for 3 Headends plus 50 DTH, that’s 82 working days for 200 sites (3 x 50 SDN + 50 DTH)

We have 200+ Independent Dealers throughout the UK plus 9 Regions for the National Network.

Assume our Independent Dealers can each supply 1 working day per day to the project and each Region

can supply 4 full-time installers, the annual capacity of the network is:

Dealers = 200 x 5 x 48 = 48,000

National = 9 x 4 x 5 x 48 = 8,640


Total = 56,640 working days / 82 days per 200 sites = 690 “sets” of 200 end users = 138,000 new Superfast End Users per year.

6.3.2.2 Technical Viability – End-to-End Service Monitoring

SES and SBBS provide 24 x 7 Operations and Monitoring through multiple and multiply-redundant Operations Centres.

Satellite Operations Centre (SOC)

o 24 x 7

Network Operations Centre (NOC)

o 24 x 7

Multimedia Network Operations Centre (MNOC)

o 24 x 7

SES and SBBS systems are monitored and managed by the above Operations Centres (all at the main site at Betzdorf backed up by redundant facilities at other sites) as follows.

Similar to a normal 'line-provider' or DSL ISP in the UK, SBBS actively monitors backbone connectivity with SNMP and via remote probes. Currently there are nine redundant backbone connections. SBBS can cope with a loss of most of these connections without impairment/loss of service due to the maximum

rates available over these connections. These are monitored along with the network infrastructure 24/7

and all backbone network infrastructure is fully redundant.

The SOC (Satellite Operations Centre) is also 24/7 and monitors all satellite systems actively as one would

expect for a satellite operations centre. In addition they have site diversity for satellite control and this is located in Redu, Belgium (This only relates to Satellite control and not the RF signals transmitted/received).

There is a Ground Operations team here, also 24/7, that provides ground infrastructure support for the whole of SES's site in Betzdorf - meaning antennas and backhaul for transmission and reception. Similarly these systems are actively monitored and have redundant backhaul infrastructure plus there is the

availability of backup antennas.

Lastly, there is the centre which directly looks after “our” domain, the MNOC (Multimedia Network Operations Centre). Once again this operates 24/7, 365 days per year. All systems related to the management/transmission/reception/reporting are all actively monitored via probes and live tests. Many systems have their own inbuilt monitoring - A2C has the SEMS (Satellite Earth Station Management

System) which provides a GUI showing all hub infrastructure at a glance, with inbuilt alarm triggers. This also has an additional error reporting system (management dashboard) which is synchronised to a central

syslog server. Similarly Gilat has the NMS, and as a SAP (Service Access Provider) there is a similar overview to the systems via the NMS as there is for A2C. This system also has a similar error reporting overview.

In conjunction with this, there are extensive additional levels of monitoring which evolve with the SBBS product/service offer. For example, monitoring of simple things like CPU, disk space, logs of items like

running processes, port probes, database interrogation (queries) and live end to end testing. There is monitoring equipment connected to all systems which provide immediate alerts to any system

interruptions. This also monitors traffic levels, data resets, congestion levels, interference as well as the management systems themselves.


This is far from an extensive description of SBBS monitoring but hope it helps with understanding how we maintain system availability.

Our local systems will monitor each SDN Headend and the Wifi CPEs served:

SDN Monitoring

Signal Monitoring

o per SDN Headend

o per DTH satmodem

The alarms triggered by each level of monitoring are usually diagnosed and resolved at the appropriate

level. Currently this is done real-time on-site but future developments include SMS alerts to on-call staff.

6.3.2.3 Technical Viability – Fault Reporting, Tracking Fixes – esp Wholesale

Detection and resolution of connection issues is much the same whether direct end-user, RSP customer or Wholesale. The difference between these is down to the route to communicate with End User:

Direct = SatInt <> End User

RSP = SatInt <> RSP <> End User

Wholesale = SatInt <> Wholesaler <> RSP <> End User

All fault reports are actioned via dialogue processes:

Now: phone to service desk or email

Next: ticket system or phone (which will create ticket)


6.3.3 Updated Solution Coverage Forecast

Contract Output b) is an updated solution coverage forecast based on the learning gained prior to the preparation of the Pilot Feasibility Report, in particular setting out the assumed number of residential and business premises to be passed and the number of End Users anticipated to participate in the Project.

6.3.3.1 Solution Coverage Forecast – Introduction

At a national level the coverage is dictated by two simple factors. 1) Does the customer have a clear line of sight to the satellite? 2) What resources does the satellite deliver to the post code area?

We can confirm that subject to the line of sight restrictions Satellite Internet services can deliver at least

99% coverage. We can confirm that

Satellite Internet UK offer a full selection

of SLAs to all post codes.

There are a number of Ka transponders

on ASTRA 2E and ASTRA 2F. Each transponder uses 60MHz of spectrum to

create up to 120Mbps capacity each.

The most common barrier to an uninterrupted data path is vegetation

(trees). The second is premises which are located on the north side of some hills.

Some locations for instance will be problematic hence the deployment and

testing of the SDN solution. Now it is more common for advisor and customer

to do some checks on line.

With several decades experience in installing satellite for both TV and broadband, it is usually possible to

find a location and fixing method on almost any property which gives a clear line-of-sight to the satellite. For example, the dish does not have to be on the property itself – the satmodem has an Ethernet port so can be as far away from the property as an Ethernet connection will allow.

Therefore in principle, we can offer a near-100% Solution Coverage as long as the site is within the above footprints.

6.3.3.2 Coverage in the Project Area

We have conducted drive-by surveys for three of the areas suggested by Connecting Devon and Somerset.

Two are in Exmoor, Simonsbath and Luxborough and one on the Mendip Heights, a village called Priddy.

In addition, we have used the local knowledge and experience of our installation company based in the

region. Outlined below are the findings:


Areas Main PC Location Initial Survey

1 TA4 Exmoor, Skilgate, Huish C to come

2 TA23 Exmoor, Luxborough 15, 16 Aug 14

3 TA24 Exmoor, Simonsbath 16 Aug 14

4 TQ11 TQ12 Dartmoor, Coombe to come

5 BA5 Mendips, Priddy 16 Aug 14

6.3.3.3 Introduction to Drive-by Survey

Satellite Internet conducted some initial drive-by surveys the evening of the 15th and Saturday 16th of August. Due to sensitivity as this is still in feasibility, we did not approach local residents during these

surveys nor carry out any detailed work such as wifi mapping which could have attracted attention.

The observations therefore are based on our experience in serving these geographies and geotypes.

In order to finalise the probable customer propositions which need to be communicated in the context of existing Connecting Devon and Somerset programmes and messaging, we have made some guesses as to

the expectations of these customers from the existing programme.

We noted the poor mobile broadband service in these areas.


6.3.3.4 Area 2 – TA23 – Exmoor, Luxborough Drive-by Survey.

Initial Sites from Postcodes

Area Sector Res Non Res Total

2 TA23 88 3 91

Luxborough is on the Northern Side of Brendon Hills in Exmoor. Luxborough can be accessed off the B3224 down 1:10 narrow roads, or it can be found through heavily wood covered roads from Roadwater. The 2011 census shows a population of some 237 in approx. 80 premises in the three hamlets.

The entrance road from Roadwater to Luxborough is a heavily-wooded road following the contours of a

stream. It is the route along which BT provides the PSTN service. Three homes were counted on this route, but more may be hidden from view. The total route from Roadwater to Luxborough is about 3.5 to 4 miles.

On entering what is a very picturesque and well-appointed hamlet. Luxborough consists of a few homes,

an Inn and a village hall built around a crossroads. It is a popular spot for walkers on the Coleridge Way. Those wishing to avail of a satellite TV service can do so (hence confirming general line-of-sight access to

the satellites delivering the internet service).

There was no evidence of any signal to support a mobile service – 2G, 3G or 4G. Two existing satellite dishes used for internet were recorded.

There appears to be a number of retired folk living in the village from the South East.

Photos show how well hidden Luxborough becomes just 500m up the hill towards the B3224.


6.3.3.5 Observations on Satellite Distribution Node (SDN with wifi).

The smallness of the hamlet – 20+premises within 200m of the crossroads surrounded by more remote

premises in the surrounding hills and valleys suggests that the cluster size for a single headend would be relatively small. Take-up would need to be rapid and at the upper end of expectations if there were no

Capex support for the head end and CPE.

In normal circumstances given the geography – i.e. without any

community engagement - it is likely customers would order individual dishes as their need arose, but a small aggregation of users would

work for a headend where capital cost was supported.

If it was decided to locate a node and build an access network for a

feasibility trial, it would appear pragmatic to hold a village meeting to seek approval and confirm demand. This should include the status of

the area within the Superfast and NGA builds already planned.

The deployment of a satellite SDN headend and or VSAT direct access as required should be supported by

a mini-consultation with the community.

6.3.3.6 Area 3 – TA24 – Exmoor, Simonsbath – Drive-by Survey



3 TA24 37 1 38

203 population -73 premises covering an area of 83sq Km. Hamlet dominated by Exmoor Forest Inn and

Simonsbath House, with c.25 premises within proximity of the B3224 /B3223/B3358 crossroads.

Simonsbath is very similar in size, scope and geography to Luxborough.

The installation of the wireless network would need careful planning given the abundance of trees and the steep inclines in and out of the hamlet.


The position is not dissimilar to Luxborough. The density of premises points to individual VSAT dishes needed to support the satellite headend and wifi SDN. Community engagement is therefore equally

important as with Luxborough.

6.3.3.7 Area 5 – BA5 – Mendips, Priddy – Drive-by Survey



5 BA5 76 7 83

Top of the Mendips, five miles from Wells to the North West, or 2.5 miles to Westbury-sub-Mendip, down a 1:6 hill covering a 300m decline. 671 population, includes a very popular Caravan and camping site 1.5km from the Village Green.

The flats on top of Mendip Heights make implementation of a wireless access network easier than in hilly /

wooded areas due to better line-of-sight from headend to properties. There are ample locations to locate and power a headend and some 200 homes plus outliers.


6.3.3.8 General Conclusions and Recommendations

Direct TV Satellite Services are being delivered to all these areas, apart from perhaps some properties (3

counted) in very heavily wooded areas on the Roadwater to Luxborough approach road. Testing the DTH satmodems in each of the areas can be progressed and we can survey these homes in heavily wooded

areas.

We do not see any overarching reason why satellite headends with wifi (SDN) cannot be deployed in each

of the areas, given that a larger proportion of individual VSAT dishes may be needed in wooded or hilly areas due to line-of-sight. However this is one of the aspects to be learned from the project.

A detailed survey would need to be done – and is planned – for each area once this action is approved.

Luxborough and Simonsbath each offer a limited set of properties to support a deployment of a satellite

headend and wireless access network. However, this is perfectly realistic within the context of the Pilot Project using capex support to create a commercially sustainable service with a lower-than-normal set of

subscribers.

We suggest a deployment would need the upfront commitment of residents in the hamlets and would need some public meeting to set out the offer and options. This would appear essential as part of any

lessons learned that would help in other areas.

Priddy is some three times larger than either Luxborough or Simonsbath and presents several opportunities to deploy an SDN Headend.


6.3.4 Updated Project and Milestone Plan

Contract Output c) is an updated Project plan.

The critical path for ordering equipment is three months from the confirmation that the pilot is proceeding. This was received in January 2015. Deployments have already started. The project plan is:

DEPLOYED PILOT SERVICES Project Milestone plans

Approved January 2015

Installation and Commissioning of Hub 1 – Feb 2015

Install Satellite SDN Hub plus Wifi Hub

Installation and Commissioning of Hub 2 – Apr 2015


Up to 50 Sites installed for Hub 1 – Apr 15

Install 50 sets of Wifi CPE

Commission and test

Complete individual End User acceptance doc as evidence, inc speed test

25 Sites Installed for Direct Access – Installations from Mar 2015

Install 25 sets of Individual Dish CPE

Commission and test


Installation and Commissioning of Hub 3 – May 2015


Up to 50 Sites installed for Hub 2 – begin May 2015


Commission and test


25 Sites Installed for Direct Access – begin May 2015

Install 25 sets of Individual Dish CPE

Commission and test


50 Sites installed for Hub 3 – begin June 2015


Commission and test



6.4 Scale and Scalability

6.4.1 Scale and Scalability – Large Scale Deployments

This proposed approach can be scaled to a national solution as part of the overall 5% challenge.

Scalability of this solution depends on:

Installation:

as above, between 138,000 and 1,000,000 per year in the UK from UK network

Sufficient capacity for the last 5% of UK homes = 1.25m (of 25m) within 2 years

Manufacturing:

Newtec have already deployed 110,000 Newtec terminals on the ASTRA Connect platforms

Gilat have shipped over 1,000,000 terminals on 430 networks in 90 countries

Ubiquiti posted Q4 fiscal 2014 turnover of $156 million

Sufficient capacity for terminals within any likely demand within UK

Satellite Capacity

The current SBBS Platform served approx. 100,000 users before ASTRA 2E was launched with Ka payload.

SBBS confirm that once ASTRA 2G is launched (Q4 2014), capacity in Ka can cater for 200,000 from the 28.2

position. In addition, the existing Ku platform can serve customers from 23.5 and other positions as well.

System can serve additional 100,000 End Users compared to Q3 2014

Sufficient satellite capacity for any likely demand by 2016

With satellite procurement’s usual 2 – 3 year cycle from Board approval to In-Service, added broadband

capacity can be procured and deployed (subject to commitment) to serve any likely demand over and above current forecasts for the UK.

Added capacity can be added for any committed demand by 2016 – 2017 and beyond.

6.5 Updated Solution Design - Conclusion

We have validated the overall Solution Design as submitted in the tender by reference to the actual

deployments in Germany and the Pilot Areas proposed for the UK.

The Solution Design in theory and practice has been confirmed and updated with the satellite operator

(SBBS) and the relevant manufacturers (Newtec & Gilat for the satellite terminals, Ubiquiti for the Wifi).

The Solution Design remains fit for the purpose as originally proposed and deployment in all the

areas and different geotypes chosen is feasible.

Due to the wishes of the Local Body, detailed surveys and customer engagement have been deferred so take-up, demand stimulation, and local network install design are not yet finalised. Further, the sizes of the areas chosen are constrained given white area requirements so the potential take-up numbers in the

short-term are toward the lower end of the scale.

Nevertheless, the overall commercial model can very well be tested in practice in these areas. The fact

that wooded valleys are more challenging to cover with wifi than settlements on a plain is worthwhile to model and carry out in order to validate the model in the real world.


Similarly, the commercial model outputs on sustainability vs capex are governed by the inputs of take-up and premises reachable within the areas covered by wifi and those outliers needing the DTH / VSAT

installation. To have this model validated in the real world is the main objective of the proposal.

The Solution Coverage Forecast has been updated given the areas chosen and the surveys carried out.

The timing of both Pilot and Deployment has been affected by the timing of practical issues outside our control and therefore Deployment in the field could not start as originally planned. However, the impact

on the Milestones is simply to move them back in line with the Deployment date to be advised. Deployment of the Solution can be put in hand immediately with actual equipment in the field being installed within the 3rd month of go-ahead.

The Project Plan has been updated allowing for the later dates.

We therefore consider our Updated Solution Design as contained within this document is valid and feasible and meets the requirements to have an Updated Solution Design including Solution Coverage

Forecast and Project Plan as part of the Final Feasibility Report.


6.6 Appendix – Updated Solution Design – SBBS Satellite Infrastructure

The SBBS internet services can be operated on most of the 56 satellites composing the SES fleet. This

gives the flexibility and capacity to extend the service footprint based on market demand.

The SBBS network can be further scaled by using additional satellite capacity. Today SBBS provides its wholesalers several GBps of aggregated bandwidth with more capacity planned.

6.6.1 Ground Segment

The SBBS managed platform is located in Betzdorf (Luxembourg) and is composed of three main elements:

The Hub,

The IP backbone connectivity fibre links

The Teleport

The SBBS wholesale platform provides the entire necessary

technical infrastructure required to receive and transmit IP data from and

to a registered and authenticated satellite CPE. The SBBS wholesale platform features the concept of Multi

Service Provider Platform, allowing

the allocation of Hub infrastructure and associated capacity to several large or medium-sized ISPs and VPN operators. Unique remote

management tools allow these ISPs to independently manage and control their part of the Hub in terms of

SLA allocation, terminal population, accounting, and terminal support.

The SBBS platform is configured in star network topology: a Satellite Terminal can only communicate to the Hub; communication to another Satellite Terminal always passes through the Hub.

6.6.2 SBBS Hub

The core of the SBBS wholesale system is a Hub which enables the provisioning of both satellite broadband services to its wholesalers. The Hub has been designed to be highly scalable for both traffic and management aspects supporting a wide and growing range of multimedia, data and voice

applications.

The Hub manages the services offered to the customers in terms of traffic shaping and service level agreements. It provides connectivity to the Internet, a private data network, or a SIP and PSTN network. Value added services, such as push content delivery, Video-On-Demand or Voice-over-IP (VoIP) telephony,

can easily be implemented on the SBBS wholesale platform.

The complete architecture has been organized in such a way, that:

It is scalable for both traffic and management aspects.

It is fully redundant.


With the existing infrastructure SBBS wholesale platform serves today more than 100,000 subscribers and is planning to scale in order to serve some 200,000 subscribers in the coming years.

6.6.3 Gilat SkyEdge II-c

Gilat’s SkyEdge II-c Hub (“SEII-c”) is a next generation satellite infrastructure capable of supporting a wide

range of broadband services.

It is composed of:

Management Chassis, central operational unit

Network segment (“NS”), service units through which Internet broadband is enabled.

One (1) Management Chassis can support up to 4 Network Segments. The network has one central

network management system (“NMS”) through which is possible to monitor, configure and controls all

Network Segments.

The different Network Segments of the SEII-c Hub are connected to the antenna sub-system or RF part, via a set of RF splitters and switches. The SEII-c Hub is fully flexible and redundant making possible to build a

single network of thousands to millions of CPEs.

6.6.4 Newtec Sat3Play

The Newtec Sat3Play Hub station consists of:

A Common Blade

One or more Carrier Blades


The Common Blade gathers the common traffic and management resources. It controls and connects the Carrier Blades and provides the operator with a unique management entry.

The Carrier Blade is responsible for handling a specific stream of traffic of which the forward link capacity (user traffic towards the terminals) is mapped onto one forward link carrier. The core of the blade contains

in conjunction with the forward link carrier, the associated return link capacity (user traffic coming from the terminals) and scheduling capacity, in order to obtain a fully bi-directional satellite link to and from the user terminals.

At the satellite edge, the Carrier blade is connected to the antenna sub-system or RF part, via a set of RF

splitters and switches.

Availability of the Hub is guaranteed by a 1:1 redundancy scheme with manual or automatic failover options. Database information is replicated and synchronized by means of local MySQL databases in a

multi-master configuration.

Availability of the Hub packet rate limiter (some internal traffic-shaping) and FUP-router functionality is realized by means of 1:1 redundant Gigabit networks between the Sat3Play HUB and the Internet.

6.6.5 The Terrestrial IP Backbone Connectivity

The Hub is connected to the Internet IP backbone via a set of routers and switches.

Today SES provides several Gbit/s aggregated capacity at terrestrial IP backbone level to support its

customer-base in Europe, Africa and Middle East. Capacity is granted by several Tier 1 links present in Betzdorf.


Figure 10 – SES’ IP backbone in Betzdorf, Luxembourg

6.6.6 The Teleport

SES provides multiple uplink services to various international customers out of its teleports located at its

headquarters in Betzdorf, Luxembourg.

The infrastructure is designed in line with the highest reliability and availability requirements that satellite control centres have in the industry.

Consequently, SES’ ground infrastructure is considered as state-of-the-art, outperforming ground infrastructure in its industry segment on a worldwide basis.

SES’ main business resides in the provision of satellite capacity and associated services.

Since the launch of its first satellite, back in 1988, SES always invested in high-availability and multi-layer

redundant utility, civil engineering and telecommunications infrastructure.

Today, SES has the industry-wide accepted status of an outstanding service provider with state-of-the-art infrastructure, manpower resources and ground systems. The site is designed with the highest standards

for satellite telecommunications and is fully secured. The operations are provided on a 24/7 shift scheme during 365 days of the year.

For all these reasons, the SES sites as well as the engineering and operations personnel are best qualified for offering uplink services to the Customer.

100% power availability is provided thanks to the installed highly redundant power system.


Separate high voltage supplies (20kV) from local grid provider to SES power plant

2 separated connections from SES internal 6,3 kV ring bus

1 out of 3 redundancy for diesel & natural gas-cogeneration units for backup power on 6,3 kV ring bus from power plant

2 out of 5 redundancy for static UPS (Uninterruptable Power Supply) system

Redundant UPS distribution (Bus 1 and 2)

Redundant UPS Power Panels 1 and 2

Redundant Short break distribution (Bus 1 and 2)

Redundant Short break Power Panels 1 and 2

The main electrical energy supply of the SES site is based on three different energy sources:

Electrical supply by the medium voltage public grid

Electrical SB supply and production by SES operated diesel engines & diesel co-generators

Electrical SB supply and production by SES operated gas co-generators

In case of an outage of the local grid, the installed static UPS system is designed to cover about 10 -15 seconds with its battery system until the emergency generators feed the UPS again. The pure battery

autonomy is about 30 minutes.

The prime energy for backup power stored at SES’ ground facilities lasts for a minimum of 3 weeks not

considering the resources of natural gas with which SES can autonomously cover the whole site with its 2 gas co-generation systems.

All environmental systems are monitored by the 24/7-manned Ground Control Centre (GCC). Multiple monitoring systems allow a permanent online control of the actual systems with regards to temperature, humidity, water detections, power load, production and more. The data are being long-term stored by a

centralized data server. All system alarms are displayed online on a visualization wall to support operators with troubleshooting. Dedicated alarms are additionally transmitted via the internal mobile telephone system.

The SBBS platform is operated from Luxembourg 24/7 by highly specialised NOC operators which are

committed to provide an unrivalled satellite and service availability.


Figure 10 – Operations centre at Betzdorf

6.6.7 Network Availability

The SBBS platform provides an availability of ninety-nine-dot-zero per cent (99.00%). The availability is

calculated by reference as of data into the Satellite, through the SBBS platform up to data out of the

Satellite.

The above mentioned high availability is achieved by:

a fully redundant service an platform as described in SBBS Hub

very strict quality control and maintenance procedures of deployed HW

outstanding availability of space segment with unrivalled 99.999% availability of the satellite link

highly reliable and fully redundant link to the backbone


6.7 Appendix – Updated Solution Design – Newtec Systems - SDN

Newtec documentation

6.8 Appendix – Updated Solution Design - Gilat Systems – DTH (VSAT)

Gilat documentation


6.9 Appendix – Updated Solution Design - Brief History of Satellite Internet

Services.

Satellites have provided data network services since the 1960s. The technology has gone through several

generations of upgrades, and is now available in all the commonly used satellite frequency bands: C-Band, Ku-Band and Ka-Band. Each generation brought improvements in capacity, (e.g. more spectrum available to carry bits, more transponders and more beams), improved performance including throughput, and lower equipment costs.

First generation satellites supported business customers need to send and receive data from remote locations. Throughputs supported were 256Kbps down with a return path of 56Kbps. User equipment was

typically £10,000. This was the pre-internet and pre IP protocol age.

The second generation Ku-Band satellite services were launched in 2000. Satellites of this era have

typically 20-40 transponders and each transponder is capable of transferring 25 - 50Mbps per transponder.

We are familiar with the concept of a dumb pipe when describing a BT Wholesale Broadband service, where the ISP adds the controls which are imbedded in the home router. Similarly satellite data transport can be described as a dumb bent pipe some 32,000 kilometres over the equator. Typically these second

generation services offered and continue to do so of 1-2Mbps down and 156-384Kbps return path.

Customer equipment at this time cost some £1,000.

2005 saw the first launch of the Ku and Ka Band satellites in the US and Europe, but third generation Ka Band satellites begun to be launched from 2010. CPE costs are now £500 per customer. Significant

capacity is now available over Europe from three satellite providers.

40 years ago, the ARPAnet (the precursor of the internet) used satellite to connect the 7% of sites at the

remote edge of the network. Satellite is today still the connection-of-choice for the last few %.

If that has been the case over the past 40 years in an industry developing at an astonishing rate, it seems

more than likely that satellite will continue to enhance services and performance and, more importantly,

continue to be the invaluable connection-of-choice for the people and communities at the edge of the network.


7 Updated OSS/BSS Study - Introduction

This OSS / BSS Study is intended to review the capabilities of our existing platform against the requirements of established platforms and to forecast what needs to be done in order to provide suitable OSS/BSS within the context of the BDUK Pilot Trial definitions, particularly “Open Access”.


begin discussions with existing wholesale platform providers

initiate development of API between satellite service and a UK wholesale platform

ensure compliance with Open Access requirements

compliance with UK Decision Minimum Acceptable Access Para 53: “Either bit-stream or White Label”

integration with ISP (RSP) and Wholesale OSS/BSS as required

7.1.2 Objective of OSS / BSS System

To allow efficient wholesale access to resellers who wish to retail services from Satellite Internet in order to meet the “Open Access” requirements of the Superfast Broadband Rollout programme.

7.2 Definitions

Relevant contract definitions from DCMS/BDUK and EU State Aid UK Decision are:

7.2.1 BSS

means the Supplier's business support systems which comprise software applications that support the

Retail Service Providers to the extent provided for in paragraphs 2.4 and 2.5 of Schedule 2 (Deployed Pilot

Services);

7.2.2 OSS

means operational support system which comprises software applications (and occasionally hardware) that support back-office activities in a telecommunications service provider's network including processes such as maintaining network inventory, provisioning services (the process of preparing and equipping a

network to allow it to provide services to its users), configuring network components, and managing

faults. The OSS layer contains the infrastructure for technical network management;

7.2.3 Open Access

means separation of access to the network from delivery of services, where the owner or operator of the

network allows other communication providers to make use of the facilities for the provision of wholesale access products and services on commercial terms which are non-discriminatory between the other communication providers;

7.2.4 Project Wholesale Access Prices

means the wholesale access prices applicable to this Agreement pursuant to Part 4 of Schedule 2

(Deployed Pilot Services);


7.2.5 Retail Service Provider

means a provider of retail internet services to end users and/or a reseller of wholesale broadband services to providers of retail internet services to end users;

7.2.6 Wholesale Access Products and Services

means the wholesale network access products and services to be leased to Retail Service Providers

pursuant to the Pilot Services as required pursuant to Schedule 2 (Deployed Pilot Services);

7.2.7 Wholesale Product Information

means the wholesale product information set out in the Supplier Solution, as required pursuant to

Schedule 2 (Deployed Pilot Services);

7.2.8 Schedule 2 Deployed Pilot Services

s2.4 The Supplier shall implement, operate and maintain the Supplier Solution to provide Wholesale

Access Products and Services at charges which allow Retail Service Providers to provide affordable

superfast broadband services to End Users;

s2.5 The Supplier shall have standard OSS and BSS processes and procedures for Retail Service Providers.

s2.7.2 The Supplier Solution shall include … a description of … the OSS/BSS technology, architecture

and capabilities

7.2.9 EU State Aid UK Decision

Para 52 requires non-discriminatory wholesale terms on equality of access basis.

Para 53 defines minimum acceptable access for satellite services as Bit Stream or White Label

7.3 Internal Definitions

MyBDSL is the current name for our OSS/BSS platform which is being enhanced in line with the Pilot

Project. In our earlier hierarchy, “Reseller” was used for the same type of channel as ISPs – or, as BDUK

definition, RSPs – Retail Service Providers.

In the updated hierarchy, names and roles are aligned with BDUK Definitions:

End-User / Subscriber o served either by Vertically Integrated channel or RSPs

RSP (Retail Service Provider) / ISP / VAR

o supplied as white label by Satellite Internet

o own the billing / service relationship with their End-Users

Wholesaler o supplied as white label (potentially bit-stream) by Satellite Internet

o own the billing / service relationship with their RSPs

In addition, we use the following roles to support the Vertically Integrated direct channel.

Dealer o retails connections to End-Users for commission on subscription o End-Users subscribe directly with Satellite Internet


Installer o installs connections for Dealers or Satellite Internet

o End-Users subscribe directly with Satellite Internet

7.4 Review

We have reviewed our existing platform which already supports RSPs and some types of Wholesaler / VAR, compared this with other wholesale platforms either in operation (EMP) or being developed (MLL) and others such as Fluidata.

We have evaluated whether the current platform can support the new network topology and technology of SDN (Satellite Headend + Wifi)

We have established our current functionality of creating and maintaining end-user accounts both direct (vertically integrated) and through RSPs.

We have documented which functions can be implemented on a web-GUI for RSPs and Wholesalers from our platform.

We have identified required functions and created a draft plan for creating an API for direct integration with other platforms.

7.5 Review - Current OSS / BSS Platform “MyBDSL”

The OSS/BSS system has evolved to cater for the needs of customers and RSPs and to allow for new services and SLAs to be delivered on new hardware platforms. Initially, only one set of services from one

operator and one satellite was offered. Today, MyBDSL has the capability of hosting multiple SLA sets from multiple satellite operators, multiple satellites / footprints and multiple frequency bands on multiple

hubs from multiple hardware vendors. These services are being sold to End Users on our vertically

integrated direct platform (www.satelliteinternet.co.uk) and via RSPs and VARs.

MyBDSL is a comprehensive bespoke CRM and provisioning system which

1. maintains the Customer Record;

2. links to satellite operators for automatic provisioning / amend SLA / cease of service;

3. links to satellite operators platforms for automatic system information down to an individual CPE level (CPE status, data traffic, connection health etc.);

4. provides the backend for the public-facing website www.satelliteinternet.co.uk for direct sales;

5. provides End-User billing information for the direct sales website;

6. provides monthly active account information for dealers, RSPs and VARs for commission and

wholesale channel.

Technically, MyBDSL is a custom php/SQL database with calls to the payment system and xml interface to the satellite operator hubs. It is exposed to internal operators via a webGUI “MyBDSL” and exposes selected information via the public front end website when End Users are logged in to their “My Account”

dashboard.

Access to MyBDSL is available to the Satellite Internet Customer Service Desk which today handles all interactions from RSPs.

http://www.satelliteinternet.co.uk/


A set of interactions and information is made available to direct End Users via their “My Account” dashboard accessed by login to www.satelliteinternet.co.uk. This includes new orders, amend SLA, view

data consumed, signal strength, account status, invoicing, billing details etc.


7.6 State Aid

The EU State Aid UK Decision covers Wholesale Access in Para 52 and 53

7.6.1 Para 52 – Wholesale Access

Wholesale Access is to be offered on non-discriminatory terms and on an equality of access basis. We believe our standard Wholesale and RSP terms meet this requirement.

7.6.2 Para 53 – BDUK Minimum Acceptable Access

This table defines minimum acceptable access for satellite as either Bit-stream or White label. Our current

offer is White label. We can also offer bit-stream access given sufficient scale. We believe this meets the

minimum acceptable access requirement.

BDUK also have Guidance on Wholesale Network Access for the National Broadband Scheme for the UK. We believe we meet the General network access conditions (para 2) by:

7.6.3 BDUK Guidance on Wholesale Network Access

meeting requests for access to our White Label offer on a non-discriminatory basis;

meeting all reasonable requests for new forms of access;

and publishing standard RSP and Wholesale offers

7.6.4 State Aid Compliance – Managing consumer experience in Wholesale Context

The wholesale model has been considered carefully to ensure support for wholesalers and their

customers. The system is currently in operation for a number of ISPs and provides installation, usage

monitoring, fault-tracking and repair within the commercial arrangements with those ISPs. The wholesale model will provide the same support to those entities.

For detail, please see the sections above where we review our current OSS / BSS system and outline the

current development roadmap. Also the Appendix – OSS / BSS Study - MyBDSL System Access Overview.

We offer Service Desk phone support to the channel: for Wholesalers, we support the Wholesaler, for RSPs, we support the RSP – in both cases to support their customers.

Platform issues are monitored and resolved 24 x 7 by SBBS / SES

Most in-field faults can be detected remotely using the tools on our platform (eg signal levels, packet error

ratio).

Many faults (IP configuration, wifi setup) can be resolved over the phone.

We issue replacement tested equipment for CPE swop-out under warranty if required.

Service visits at set price also available: chargeable if no fault found, under warranty if under warranty.

This model is acceptable to our current channel. Other variants can be discussed with new channels on

request.


7.7 OSS / BSS Study - Conclusion

Having reviewed the abilities of our current system, we conclude that it does meet the requirements of

OSS / BSS in support of Open Access, albeit in a basic manner.

Having reviewed other Wholesale Platforms available to (or proposed for) RSPs, we have identified where our platform:

1. can be enhanced into a toolkit suitable for RSPs and Wholesalers using formal ticketing and WebGUI

2. can be exposed through an API suitable for integrating into the MLL Wholesale Access platform and similar platforms as required

We have a standard set of documentation for RSPs / Wholesalers which describes our offer in an open and non-discriminatory fashion. It also explains the business processes to provision, amend and cease a user

which can be accessed by:

3. interaction with Customer Service Desk via phone or email

4. formal ticketing system

5. with an API development plan ready when required

We have reviewed the Proposed Outputs and submit that this study delivers these outputs:

begin discussions with existing wholesale platform providers

carried out with MLL and others

initiate development of API between satellite

service and a UK wholesale platform

API plan drawn up subsequent to this study

ensure compliance with Open Access requirements

review indicates current system compliant at basic level, improvement plan in place

compliance with UK Decision Minimum Acceptable Access Para 53: “Either bit-stream

or White Label”

complies with White Label

integration with ISP (RSP) and Wholesale

OSS/BSS as required

three levels of integration with third party

work-flows: phone/email (today), ticket/webGUI (being rolled-out), API plan ready (as required)

We therefore further conclude that this document meets the requirements of Milestone 4 (OSS / BSS Development Study) and also contributes to Milestone 9 (Final Feasibility Study) by confirming that our

services and systems are made available as fully compliant with “Open Access” principles.


7.8 Appendix - OSS / BSS Study - References Used

1. Equivalence Management Platform – Overview

2. Equivalence Management Platform – High Level

3. MLL Wholesale Exchange

4. MLL Solution Overview API outline

5. Satellite Internet overall Development plan for White Label and Systems Development


7.9 Appendix – OSS / BSS Study - MyBDSL/MySI System Access Overview

7.9.1 Overall purpose of the system

The system is designed to allow Satellite Internet / BeyonDSL to manage its distribution network through Wholesalers, ISP/RSPs, Dealers and installers through to the end customers.

MyBDSL is the name for the current OSS / BSS which acts as CRM, provisioning and invoicing system both

for the vertically integrated online direct sales website www.satelliteinternet.co.uk and RSPs. The

enhancements to this system will be known as MySI in line with the trading style used by BeyonDSL: Satellite Internet.

7.9.1.1 Distribution system hierarchy

MyBDSL has the ability to set up the hierarchy of the distribution network through the OSS/BSS to capture

details of each company in the order:

Service provider (SatInt / BeyonDSL)

Wholesaler

ISP/RSP

Dealer

Installer For each intermediate stage between Service Provider and Installer the “manage distribution details”

function allows details to be captured and the relationship to the company occupying the next highest position in the hierarchy established (e.g. which Wholesaler does the ISP/RSP belong).

Later this functionality may be devolved to each level of the hierarchy to set up their own network directly

using the system.

MyBDSL is able to set up each administration user for each member of the distribution network through the “maintain user records” function. Details of the user are added and the user is associated with the

appropriate distribution network company.

The level in the distribution hierarchy dictates what access to functions will be allowed to the user (i.e. a user who is part of an ISP/RSP will be presented with different menu options to that seen by a user who is

part of a dealer. Later this function will be extended to allow different levels of access within each level of the hierarchy.

7.9.1.2 Logon to system

All distribution network users log into a generic Satellite Internet log in page.

Full main menu functionality is retained by Sat Int / BeyonDSL initially for all administration functions.

Menu options for other levels of the distribution network will be limited by need:

Wholesaler o Commission transaction report & Commission summary report

o My Customers (ISP/RSP) list & link

o Options to view customers & orders. Active & pending/confirmed/unpaid stats. View orders & view customer details

ISP/RSP o Commission transaction report & Commission summary report

o My Customers (Dealers) list & link

http://www.satelliteinternet.co.uk/


o Options to view customers & orders. Active & pending/confirmed/unpaid stats. View

orders & view and amend customer details

o View customers without stickers, User stats & view active customers with no stickers detail

Dealer o Commission transaction report & Commission summary report o Options to view customers & orders. Active & pending/confirmed/unpaid stats. View

orders & view and amend customer details

o View customers without stickers, User stats & view active customers with no stickers detail

Installer – the installer network is common to all the distribution network and current functionality exists to support their needs.

All levels of the hierarchy have access at the main menu page level to two further functions not yet shown

on screenshots:

A link to the main website page to view distribution specific content without additional log in

requirement

A function to create tickets for action and to allow them to monitor progress to the completion of those actions. The actions that this function will manage are described below.

7.9.1.3 Managing orders and customers

Initially all orders and customer actions are managed centrally by Sat Int / BeyonDSL using the OSS/BSS.

Requests from the distribution network to undertake any of the following actions can be passed to Sat Int / BeyonDSL through the ticketing system using specific request types and tailored data input forms.

Add new Customers

Add new admin user

Add new contract / place order

Change site

Change SLA

Change status (including cancel contract)

Installation request

Raise support / help request The distribution network is able to view the status and processing of these their ticketing requests.

At a later point the functions that exist in the OSS/BSS to undertake these functions will be opened up to them to be able to manage their customers and orders directly.

7.9.1.4 Billing

The OSS/BSS has the ability to set up different contract prices for each wholesaler. The system will

aggregate sales of each contract sold from within the wholesaler’s distribution network and determine the amount owed to SatInt / BeyonDSL by each wholesaler on a monthly basis.

The system will invoice the wholesaler monthly with a back-up report showing the detailed sales listed under each ISP/RSP within the Wholesaler’s distribution network. These back up reports are available via

the main menu function.

Each wholesaler contract price will have a set ISP/RSP and retailer commission level. The system will produce a Commission report for all sales. These reports are available via the main menu.

Initially invoicing will be done manually from these reports. Extension of this function to automatically bill wholesalers is possible in future.


7.10 Appendix - OSS / BSS Study - BT EMP Analysis

The following table highlights the principal elements of the BT EMP (Equivalence Management Platform)

functions and relevance or otherwise to a satellite service.

The function of EMP is to transfer assets from one supplier to another with the minimum disruption of service. The assets being transferred are owned by BT Wholesale. The processes prevent assets being

removed and re-installed and the associated costs of doing so.

EMP supports the following scenarios:

A Local Loop Unbundling (LLU) Shared Metallic Path Facility (SMPF) Operator to a BT Wholesale ADSL Communication Provider.

A BT Wholesale xDSL Communication Provider to another BT Wholesale xDSL Communication Provider.

Because satellite connectivity does not involve a phone line or other terrestrial link, EMP does not map

onto satellite provision. However, EMP is a known Wholesale platform and so an analysis will help inform discussions with those RSPs and Wholesalers who are familiar with it.

EMP provides a series of dialogue services relevant to a fixed line service provider.

The first table shows the principal job types. The second table highlights the more detailed dialogue

services available.

The third and fourth tables illustrate a simple transfer and a simple new order.

7.10.1 Principal Job Types of EMP

Task EMP platform

MAC Code string types

Compare with Satellite

Migrating a BT regulated service.

Customers requests a MAC code from gaining ISP

Ceasing a PSTN service

Ceasing a PSTN and Broadband

service because the line is

converted to a MPF (Metal Path Facility)

Migration of Broadband to Shared

Metal Path Facility (SMPF)

Data Cleanse Cease

MAC string depends upon

cease/change requested

Migration not relevant, Satellite does

not use phone line.

Phone line and other BT assets do not

need to be migrated in order to provide satellite connection.

MAC (Migration Administration Code)

Not migrating assets.

Customer requests a MAC from existing CP specifying BT account number and phone number

As above


Task EMP platform

MAC Code string types

Compare with Satellite

CP generates MAC code on eCo Openreach platform

As above

Customer provides MAC to gaining CP

As above

MAC once verified creates a

product order which has a life

cycle.

Submitted

Acknowledged

Assigned

Committed

Installed

Completed

Cancel an order

Amend committed date

Compare to our customer lifecycle:

Unverified

Verification

Awaiting Activation

Active

Cancelled

Inactive

Churn Notice

Closed

Churned Bad Debt

Delete Old Sit

Declined

For Deletion

7.10.2 Dialogue Services – Support, Progress and Completion of Order.

CP Dialogue Services BT EMP Platform Compare with Satellite

Address Matching Y Not as “Address Match”, but need valid site

address for service beam

Appointing Services Y Yes

Calling and network features Y satellite SLA plus Options

Enhanced Line Characteristics Y No

Fault Tracker Y Trouble ticketing system

Order Tracker Y MyBDSL, automated emails

Line Test Y valid site address, line-of-sight check / app

Overnight Test Results Y No – CPE signal and data checks online

realtime in My Account and MyBDSL

MAC Checker Y No

Managed line plant availability Y No


CP Dialogue Services BT EMP Platform Compare with Satellite

Manage linked order Y No

Manage Product Availability Y No

Network Availability Y if site has line-of-sight and a place to mount

the dish, satellite network is available

Number Portability Checker Y for telephony enabled VOIP providers

Number Reservation and

management

N for telephony enabled VOIP providers

OID N No

7.10.3 An Order for a New Line.

This workflow on EMP resolves around the regulated wholesale product WLR3. The notion of a new line involves a series of dialogue services to locate the existence of existing plant.

Order New Line options BT EMP Compare with Satellite

Start of a stopped line.

Yes Restart provision to existing equipment, same site.

Takeover of working line (WLT)

Yes Existing equipment, new

customer is cease old customer, start new one

WLT with open stop order.

Yes Restart provision to existing equipment, same site

New Copper Series of dialogues on address

matching and costing

New order for connection /

installation via website / MyBDSL

and including payment system

7.10.4 Transfer of Broadband Service from RSP A to RSP B.

Process Flow EMP Platform Compare with Satellite

Customer calls RSP A and

requests MAC code, presenting their phone number and account

id.

Customer gives notice to RSP A.

RSP A accesses – eCo managed

by Openreach and request MAC

code and confirms to Customer

RSP A informs Satellite Internet.

Customer provides MAC Code to RSP B with phone number,

account id.

Customer gives CPE MAC (note, Ethernet MAC not EMP MAC) to

RSP B

RSP B initiates dialogue services RSP B informs Satellite Internet


Process Flow EMP Platform Compare with Satellite

Submitted

Acknowledge

Assigned

Committed

Installed

Completed

Satellite Internet transfers Customer Record from RSP A to RSP B

So which processes in EMP are relevant to Satellite Internet UK in modifying the existing platform to cater for Wholesalers and RSPs?

1) The most basic requirement is that the MyBDSL CRM has a customer hierarchy which supports

Wholesaler, RSP, Dealer and Installer and can be reported upon in this manner.

a. MyBDSL fulfils this requirement

2) The second requirement is for Wholesaler and RSP interaction interfaces which permits orders to

flow from a wholesaler with their own web presence and billing system to the MyBDSL automated

online ordering system. The orders will be for the existing products but the prices reported will be those between the Wholesaler / RSP and Satellite Internet.

a. this is currently done by service desk / email / ticketing /MyBDSL

b. API development plan is being developed

3) The third requirement is a toolkit which permits an RSP to skin MyBDSL assets under their own URL, with a capacity to place orders though an XML interface to the MyBDSL system.

a. current interaction process means RSPs can take orders on their own site, then send to us

so reskinning not currently needed (and has not been requested)

b. Wholesale / RSP Open Access available by email / ticket and API plan being developed

4) The fourth requirement is for a series of standard reports to be generated to support orders received, cancelled, and in progress, by month, by year, by year to date, by quarter, as long with revenues by connection, installation, rental, and by package type. The reports itemise for each

Wholesaler / RSP, their active accounts and SLAs.

a. orders and amends progressed via email / ticket. Active End User accounts allocated to each Wholesaler / RSP are reported on a monthly basis in MyBDSL

5) The fifth requirement is for a trouble ticketing system with our wholesalers and reseller/dealer to

support the installation of new customer and cease processes.

a. currently done by informal phone call / email supported by Issue Tracker.

b. Ticketing system being introduced.


8 Performance and Traffic Management Study

8.1 Performance and Traffic Management Study - Introduction

The Performance and Traffic Management Study is referred to by other Milestones:

02 – Updated Solution Design

06 – Lessons Learned Report

09 – Final Feasibility Report

8.2 Performance Learnings So Far

We have reviewed the SDN installation in Germany and conducted speed tests and interviewed the local community champion. The immediate conclusion is that benefits to the end user are not just

improvements in the statistical performance to their broadband compared to their previous connection,

but also delivering a better customer experience in the terms of the installation and robustness of the satellite connection where delays to physical connections or intermittent ADSL were experienced. The

service level agreements are transparent as is the fair use policy.

8.3 Performance Data reviewed during feasibility

Internal Customer Data:

Speed tests

Modem tests

Signal tests

Congestion data

SLA’s

Congestion Factors

Architecture of Satellite Network

SDN network

Having examined the data available and the architecture of satellite internet services we outline the main

issues that need to be considered and outline the contents of a Performance and Traffic Management

Study.

8.4 Performance and Traffic Measurement in Satellite Networks

The resources available to a satellite internet user are different to that available to a service delivered over a fixed line. Fixed Line Broadband service be it superfast or standard is dominated by the performance of

IP networking under congested conditions. This assumes a user has achieved a line capable of the

required access speed. Congestion management in fixed networks is addressed using generous provisioning and the ability to mark and prioritise traffic, which means applications like browsing or streaming, can, if carefully managed be ascribed budgets for packet loss, jitter and delay, depending on

what the ISP wishes to define or not define.

The satellite service is different. The satellite system uses an RF-modulated DVB Data Transport Stream to carry fixed-length data packets (typically MPEG2 or MPEG4) prefixed by an identifying header. The Data Transport stream removes observable packet loss and jitter. Any re-transmissions of data are only observable in the variation in the measured delay.


This Transport Stream (subject to link budget constraints) carries a fixed bandwidth data stream from the Hub to the CPE. The performance of the connection as seen by the customer is not affected by line length

and is defined by the network configuration. Satellite Service SLAs are simple covering the “line” speed, the amount of data per month, a Fair Use Policy and a transparent congestion indication.

While fixed networks need to overcome challenges in the access network, the core network and internet gateways, satellite networks need to manage the user experience within the limits of the available transponder capacity. This is achieved using traffic management applied on a user account basis

(the “SLA”) to control traffic flows across the network and ensure that each user gets the traffic level for

which they have paid. In this way, light users do not have to pay higher prices for data they don’t use and heavy users can be sure that they get what they pay for. Customers are paying appropriately for the SLA

they choose to receive. This includes traffic management policies (FUP and CF) where in the peak hours

customers may experience lower speeds. All Broadband SLAs have limits. If these limits, driven largely by the need to create affordable packages are understood and communicated clearly, then customer expectations are set correctly and met.

The “Line Access Speed” is, therefore, that configured within the Transport Stream: typically a Ka

transponder operates up to 100Mbps or more. This is then controlled by the traffic shaper policies

implemented for the appropriate level. For example:

40 Mbps for the SDN (satellite backhaul with local Wifi network) which is served out to End Users

max 25Mbps

20 Mbps for the current generation of sat modems

25 to 40Mbps for the new generation of sat modems in the deployed pilot.

Ever greater line ‘access speed’ does introduce a challenge of its own. A quality home working experience

for a single customer can be supported with a line speed as little as 10Mbps or even 2Mbps as defined for the USC. By increasing the access speed more demand is created on the available shared peak capacity. Greater periodic demands could possibly reduce customer experience for all users in the busy periods.

Furthermore it is widely accepted that 90% of the known economic benefits of broadband can be met by having access to a 10Mbps service. Beyond that access speed or throughput other factors such as reliability, affordability and usability become more important than headline speed on its own.

8.4.1 Performance and Traffic Management studies

SI have reviewed Performance and Traffic Management studies conducted by Predictable Solutions for fixed line broadband solutions and Sam Knows completed for Ofcom. SI have also reviewed Ofcom’s latest infrastructure plan.

Satellite Internet network topology is fundamentally different to terrestrial and, therefore, parameters such as contention do not accurately reflect the performance and customer experience. This PTMS offers

the opportunity to measure the basics of customer experience directly over the satellite system from hub to CPE – in other words from core network to the customer.

8.4.2 Scale and Scalability – Network Topology: Satellite vs Terrestrial

Satellite is star topology with all users effectively connected to same internet backbone (currently 100,000 users to 1.2GBs) expandable as required.

Terrestrial networks are tree / branch and typically quote contention ratio between End User and first branch point (e.g. exchange or cabinet) which could be “50:1” or for SME “20:1”.


These two measures can not be meaningfully compared as they do not reference the same backbone connection point.

8.4.2.1 Satellite Network - Star

The components of a satellite internet service directly connect every user terminal to the single connection point at the hub without any intervening network. This is a “star” network”

The satellite connection between the satellite operations centre and the end user, typically a two way trip of 36,000 km each way.

The network connection between the operations centre, including the hub, and the internet, is a

dedicated resource where the operations centre itself acts as a dedicated gateway to 9 internet

gateways including Paris, London and Amsterdam.

The diagram shows the components to manage.

The perspective of the satellite operations manager is very simple: their sole focus is to maintain the quality of the transmission link to and from the satellite, and to maintain the transmission from the

satellite to the end user. If this is maintained then the data flow is managed and predictable.

Environmental conditions do cause the signal to attenuate but these are known and are reflected in the

link budget and coding mechanism.

8.4.2.2 Terrestrial – Tree and Branch

A terrestrial network has a number of levels and interconnects between the core network, wholesale providers, nodes, exchange, cabinets and then finally the end user. This is a “tree and branch” network

where the trunk represents the core network and the end users are at the end of each twig – with traffic policies and capacity issues at each level from trunk through several branches to eventual end user.


For an xDSL (FTTC or ADSL) network the main components are:

1) Local access over copper for ADSL from the BT exchange, or sub-loop of copper from the VDSL

cabinet. Line length can be as long as 10km, with copper of 3mm or 5mm gauge of variable quality contained in duct or attached to poles of unknown quality. Actual performance varies with signal

attenuation and this degrades as the number of users served per 100 pair cable increases.

2) Dedicated or managed backhaul from exchange or cabinet to handover point. For rural BT wholesale provided managed shared bandwidth for all users.

3) Routing to ISP, BRAS (Broadband remote access server.)

4) Managed, dedicated or privately own bandwidth to an internet exchange.

This creates a complex system which can only be managed by generous provisioning rules,

typically no component can be loaded more than 30% before additional capacity is added.

BT’s 21CN network is presented as follows:

The ‘access speed’ is measured between the end user and first point of aggregation, be it FTTC cabinet up to typically 6km away or DSLAM located in an exchange located up to 12km away. Once the traffic is

aggregated, the network is then planned around managing a peak load.

The key difference between a satellite internet service and an xDSL service is the complexity of the xDSL

network and the increased opportunity to ‘lose quality’ in delivering the service. A Wholesale Broadband access network is a complex system which has the inherent potential to behave unpredictably, hence the


need to actively manage and monitor key performance parameters like packet loss, jitter and delay. Wholesale Broadband access networks are dumb pipes in so far as the objective is to send and receive

bits, but the IP protocols in reacting to the congestion and routing options it encounters becomes increasingly complex to manage as traffic load grows.

The satellite internet service is defined by the service level agreement. The service level agreement defines the delivery of a certain number of Gigabytes for a month for a defined price. Resource is managed by reducing download speeds per customer once a customer has consumed the contracted volume (their

SLA), plus a Congestion Factor reducing speeds for all fairly should the overall load on the system exceed

unity. Statistically, sufficient resources are in place to support all key applications.

The components used to deliver a satellite internet service are fewer and simpler in number. The

transmission chain uses a fixed packet size, thus removing most observable packet loss and jitter. Thus

the focus is placed on mitigating delay and a great focus is placed on pre-caching content and implementing PEP measures to enhance the customer experience.

8.4.3 Scale and Scalability – Satellite Throughput: DTH vs SDN

Specifically, how much satellite instantaneous, busy and monthly throughput (after applying contention

ratios) is available to each customer in (a) the direct case (b) the satellite backhaul case (in MBps, GByte per month)? What calculations support this?

One of the unique aspects of the Pilot project as proposed is that the same SLA set is offered to both SDN

and DTH customers. Already in the German SDN deployments, the SLA is controlled by the customised

ProVision system which allocates resources by the IP address of the End-User CPE.

This is a new topology compared to previous satellite systems which specified an SLA for the backhaul just

for that segment and then shared it in the wifi domain locally.

Therefore the SLA specified (traffic & speed step profile) is applied between hub at satellite operator

ground segment (earth station) – no matter whether direct (DTH) or via distribution node (SDN) – and the End-User CPE whether this is a satmodem or a wifi access point.

8.4.4 Scale and Scalability – Approximation with ADSL service

How closely does this approximate to an ADSL service?

This exceeds the capability of ADSL services affected by distance.

8.4.5 Scale and Scalability – Capacity DTH vs SDN – Speed and Data cap

Has much capacity is available at each satellite backhaul hub. Will direct and Wifi customers get the same instantaneous, busy and monthly throughputs?

For each speed and data cap option, what are the per-customer traffic assumptions?

Yes, DTH and SDN customers have the same SLAs and hence the same user experience.

These are contained in the SLA agreement:

25Mbps / 5GB: after the traffic limit, up to 50GB at follow-on speed (up to 256kbps)

25Mbps / 20GB: after the traffic limit, up to 60GB at follow-on speed

25Mbps / 50GB: after the traffic limit, up to 100GB at follow-on speed

FreeZone option adds unlimited traffic 23:00 – 07:00


Monthly Resets will be available which resets data to 0 at approx. half monthly rate.

8.5 Factors Reviewed Affecting User Performance

The actual speed seen by the End User depends on:

the SLA level they chose

if they have used so much data that the traffic management in their specific SLA is triggered

the overall network congestion (CF)

factors affecting Transport Stream throughput –

typically bad weather events reducing the signal

below normal so that more robust coding is temporarily required to maintain connection.

These factors are exposed to the End User via their web

GUI (Graphical User interface) which accesses the main traffic and system database at the hub. This GUI also calculates and displays to the End User their actual expected speed at the current time taking into

account these factors.

It should be noted that most terrestrial broadband services will only use their Line Access Speed to engage

with the customer and evaluate service performance. This does not include system congestion or effects of traffic shaping or other network constraints. In this regard, our system is significantly more transparent.

The SLAs specify the resources available to each end user at an end user level and this is based on the

collective experience of the industry meeting customer needs in a competitive market. If more than these

SLAs are needed to meet a national initiative then appropriate SLAs can be proposed to meet those needs.

It is worth noting that figures for data usage per user all the way to the core network are available. This is

again a very transparent practice and reinforces that the full potential of the

available resources are being exposed to the user. This is different from fixed line networks where there is less

transparency about the resources in place to meet a service level.

8.6 Other Performance Data

sources Reviewed

Ping Times

Data Traffic per End User upload

and download over period

(WSDL / My Account)

Uptime

There is an extensive data set available on the SBBS platforms by type of traffic in whatever period is

needed.


8.6.1 Remote Monitoring as a source of data

SI are also members of RIPE and will if the need arise deploy RIPE’s toolkit to contribute to statistics on internet performance. The RIPE Atlas probe gives constant monitoring of network uptime and performance.

8.6.1.1 CPE Data Logging

We have reviewed Bitmeter as a potential tool to deploy if required at CPE level.

8.6.1.2 Congestion Factor

The Congestion Factor CF is very sensitive and

commercially confidential. It measures the load on the overall system. We are happy to share more detail on this measure during discussion.

8.6.2 Additional steps to mitigate Delay

SBBS platform deploys a whole range of mitigation

factors to minimise the effects of latency. These include TCP acceleration, HTTP web pre-fetch

acceleration and payload compression, all features supported in the modem. SBBS network uses ETCP

to overcome slow start loading of content, and PEP (Performance Enhancing Proxy) at the SDN to optimise the flow of bits and from the user.

8.6.2.1 Pre-deployment based on Existing Performance and Traffic (completed)

We have examined Ofcom’s study on satellite services. We have reviewed SI internal traffic reports. We have also reviewed the detailed architecture of SES satellite network. We have also examined publicly

available literature from PNSOL and Sam Knows on the performance of fixed line broadband access networks.

We have reviewed the SDN network in Germany and concluded the improvements are predominantly in the customer experience rather than any incremental improvements in throughput.


9 Demand Stimulation

9.1 Demand Stimulation - Introduction

The Demand Stimulation Study is referred to by other Milestones:

09 – Final Feasibility Report


The proposal stated:

Ready and approve with the chosen local authority material for customer recruitment and research data both user experience and network performance we would seek to collect and

collate during the Pilot.

Once a location is chosen, the feasibility stage is used to agree the customer recruitment programme, the customer research to be conducted during the trial.

We would expect to work with the nominated local authority on a customer contact strategy using

a combination of their capacity to promote the pilot with fulfilment of order and ongoing support

by Satellite Internet Services.

9.2 What Is Demand Stimulation?

The purpose of demand stimulation is to stimulate as many people as possible to connect to this service and receive the benefits of superfast broadband. Clearly a first step is to locate an area where demand for

better broadband is likely to be high. This could be due to the current broadband service offering low

speeds or an unreliable connection. We are then able to speak with the following:

1. Parish Council – introduce our service 2. Residents

3. Businesses

We will communicate with the residents and businesses in this area to collect information about

the quality of connection they are actually receiving right now (part of the customer

experience study). This sets a baseline and we can then stimulate an interest in our service by advising them what we can offer and why satellite

is a viable service based on everything that is

available. On the right is an example of the set-up

for a presentation completed in Greimerath, Germany where a pilot project was conducted.

In the past, a high priority has been to communicate the benefits of broadband. For example, what it will do for my business, family, etc. However these benefits are now much more widely known and a review of the previous materials (Rural Broadband Connection reports & brochure) show that there needs to be a

shift to fulfil demand which already exists. By doing this we are addressing previously received wisdom. There needs to be an explanation of why satellite broadband is a viable service.

It is also important to consider what technology is available and where. The current rollout programme

may not reach certain areas for some time due to economic limits. Therefore the benefits of receiving


superfast broadband through satellite are now further in the spotlight than before. Using satellite to provide access to superfast broadband is a viable solution.

9.3 Material for Customer Recruitment

A brochure detailing:

o Why you as a resident need better broadband. o Why you as a business need better broadband.

Rural businesses depend on the internet - our service provides a fast and reliable

connection with different packages tailored to your needs. o What can you do with satellite?

Web browsing / e-mail Streaming of video content

VoIP o FAQ’s about our service. o Support we offer.

Document about how much this is going to cost – there is funding available.

A section on our website to register your interest. This confirms who is interested so we know who

to contact

Paper survey to fill out and send back to us.

Document detailing dates for:

o Meetings – presentation for Parish Councils. o Local events – more info, ask questions, demonstrations.

o Workshops – hands on with a live set-up, try before you sign up.

Our contact details – how do I get more information? (Phone, e-mail and a postal address).

9.4 Customer Recruitment Programme

The customer recruitment programme will include the following:

A direct mailshot.

Meetings with Parish Councils to introduce them to our service and its benefits. A demo of our equipment can be included. This is to ensure that councillors are aware enough of the project so

that they can inform their local residents and businesses.

Local events/workshops to: o Demonstrate how the satellite service works and its advantages to both residents and

businesses. o Staff to answer and questions/provide information. o Dispel any myths people may have about satellite (very expensive, slow, and difficult to

set-up).

o CDS members to be present to promote the service being provided by this project.

9.5 Customer Contact Strategy

The first thing we need in order to develop a strategy is a location for the pilot study. This has been decided as five areas which are Simonsbath, Priddy, Luxborough, Skilgate and Coombe. The post codes for these areas were provided by Connecting Devon and Somerset Council. These provide an area for us to

target for wider messaging as mentioned below. We need to be careful not to stimulate demand or create expectations in areas where we do not intend to deploy our service.


9.5.1 Strategy Flow

1. Wider messaging (targeted as our area is limited in geography). a. Meetings with Parish Councils. Important to do this before we contact

residents/businesses. At least two members of Satellite Internet staff to addend to present

and conduct a live demo. b. Send an information pack to the selected areas. A direct mailshot can be prepared and

sent within weeks. c. Identify and contact organisations/businesses to help host events and increase

engagement.

2. Identify potential customers.

a. Set-up a “register your interest” section on our website.

b. “Register your interest” form during workshops. Satellite Internet staff will run these and be on hand to answer questions.

3. Make contact with these customers. a. Support centre to make phone calls and conduct surveys.

4. Recruit these customers into the pilot scheme. a. Support centre to recruit customers.

5. Begin our customer service towards them once installation is complete.

9.5.2 Types of events:

Meetings with Parish Councils.

Meetings with key organisations/businesses.

Local events/workshops.

Satellite demonstrations and taster sessions.

Project promotion.

Parish training sessions.

9.5.2.1 Sample Schedule - Local Parishes

Below is a sample schedule we could follow and could be adapted by others to conduct meetings with

local parishes:

Contact local parish (phone or email) to set-up an initial meeting (presentation & demo).

Preparation: o Organise a demo kit plus a backup.

o Create a presentation. o Brief & train staff members who will attend.

Arrive at meeting and conduct: o Introduction (who we are, aims of the project).

o Presentation.

o Show off demo. o Q&A session.

9.5.2.2 Sample Schedule – Workshops

Below is a sample schedule we could follow and could be adapted by others to conduct workshops in the community:

Contact the local body to discuss having a workshop.


o Confirm location, time and who will be present.

Circulate date and location for workshop in the recruitment material.

Book the venue.

Preparation: o Introduction / speeches o Organise a demo kit plus a backup.

o Create a presentation.

o Brief & train staff members on how to run the workshop, how to answer questions.

Design a method so that attendees can register their interest.

Conduct the workshop as per items in preparation. o Included: forms available for people to register their interest in the service. They can then

be contacted by our call centre to recruit them into the pilot project.

These kinds of meetings/workshops have already been successfully run in Greimerath, Germany. As shown in the photos below they are very easy events to organize.

9.6 Potential Bodies Already Identified

These are the organisations that we are either working with currently or have identified as being potential

to work with in the future:

CD&S.

Exmoor National Park.

Cosmic.

Superfast Business.

9.7 Demand Stimulation Study - Conclusion

This Demand Stimulation Study seeks to provide a basic framework of proven methods which will usefully

stimulate demand and contribute to the Pilot Project roll-out.

They are presented in order to discuss with the Local Bodies and Organisations as the basis of a plan to be

implemented within their context once decided.

We therefore conclude this Study fulfils our Proposal.


9.8 Appendix – Demand Stimulation Study

Below are materials which we have reviewed and used to inform a part of our understanding of how

demand stimulation should be conducted:

DCC Report to DEFRA: Project No 203416 ‘The Rural Connection’ Project.

Final Report, Rural Broadband Connection – Digital Mentors.

The Rural Connection brochure.


10 Risk Register

10.1 Risks and Dependencies – Risk Register

Risks should be covered in the risk register, along with current status. A risk register will require updating

through any deployed services phase.

We believe we have outlined a body of work which can be delivered in a manner which has few risks. The

project represents few – if any – key changes in our existing operations and both technology models are known to us and our supplier being either a step change to existing network or a new integration and

deployment method of systems already used.

1. Subdistribution of satellite backhaul via local wifi or DSLAM hub

a. Live deployments already in operation with our European partner (SBBS)

b. The integration of the new technology gateway is new to us but fits within our overall

competence and will be informed by the experience of the project personnel from our European partner

c. Existing backhaul, platform

d. Satellite equipment from existing supplier

e. Existing installation resource, provisioning

f. New wifi installation, survey from experienced partners

2. New, faster individual direct access terminals up to 40Mbps

a. Existing backhaul, platform

b. Existing installation, provisioning

c. New generation CPE from existing supplier

To address the specific questions:

C3a. Selling through new channels or under new operating models

We will provide both models through our existing vertically integrated service provider platform.

We can provide both models through white label to ISPs. We intend to attract new ISPs but have an existing platform/model for this channel.

Our proposal includes selling through the local wifi and/or cabinet/phone line provider partners in

the appropriate areas

C3b. Recruitment of personnel to deliver or support the pilot project

We include specific personnel for report writing and carrying out the Feasibility study.

We can deliver the installation of the satellite technology within our existing management and contractor resources.

Depending on the number of areas selected, we are prepared to add specific resource to ensure

efficient management and execution of the project and project interface with LBs and local

partners.


C3c. Making changes to a product portfolio, along with the associated changes to systems and engineer training, to incorporate new solutions

Product portfolio for individual terminals uses similar systems from the same manufacturer as

now.

Our existing provisioning platform can accommodate these new higher speed products.

Work as specified in the project will be needed to integrate with ISP and wholesale OSS/BSS as

desired but this will be integrating from our known, working platform and API.

Training will be needed on the commercial aspects of the higher speed products but this is similar to previous product enhancements so the process is known.

Product portfolio for the satellite backhaul / subdistribution network is known from the German deployment but will need adapting for UK (for example to align with UK price points, ISP requirements, consumer offer).

Training for the new gateway and integration used in the backhaul/subdistribution system will be provided by the existing project team from Germany.

C3d. Sourcing new suppliers to equip and/or support the pilots

New suppliers will not be needed for the majority of either method. We are using the same backhaul provider and satellite operator with which we have an existing commercial relationship. The equipment

needed for the satellite section of both methods comes from the same suppliers as we use now. We will need new suppliers for:

The local network equipment – which will be the same as used in existing deployment by our

existing operator so it’s a known and proven quantity.

The local wifi surveyor and installer – which will either be one of our proposed partners or a local operator supported by us depending on the pilot area chosen by BDUK.

C3e. Establishing a new corporate entity (e.g. joint venture) if required

Not required within our Pilot proposal.

C3 – Other Dependencies

We have a concern that some local authorities may not wish to embrace alternative solutions before the current Framework rollout is exhausted. However, we believe the list of LBs willing to host a Pilot does represent willingness of these LBs to explore alternative solutions to reach the last 5% unserved by

Framework agreements. We believe the co-operative approach outlined in this proposal means we can be

used to both deploy our solutions and by providing effective feedback, results and white papers to the wider community, encourage wider uptake of the technologies and methodologies used in our proposals

to better serve the UK’s unserved.

C3 - Summary

We do not envisage needing to make any key changes to our operations but have identified the areas

where we will need added resource and to manage the project effectively based on our current business

and technology expertise. The Feasibility phase will allow us to “reality check” our barrier/risk/dependency assessment and make changes where needed.

The technologies we propose are known to us or our suppliers or both and are either a step-change to

existing systems or a new integration already in operation elsewhere in the EU. We believe our experience


has equipped us to manage the introduction of these new systems both directly and in conjunction with new channels and local network providers as proposed.

For the above reasons, we believe we have anticipated the barriers, risks and dependencies to both delivering a successful project and laying the ground for successful wider deployment using the lessons

learned and disseminated.

Bduk feasibility rpt satellite internet

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