Broadband via Satellite: Eutelsat Perspective · Cost Comparison DSL - Satellite Terrestrial...
Transcript of Broadband via Satellite: Eutelsat Perspective · Cost Comparison DSL - Satellite Terrestrial...
Broadband via Satellite: Eutelsat Perspective
DLR, 11 February 2004
Eutelsat: Europe’s Leading Satellite Operator, Worldwide Number Four
25 Years in the Satellite Business
4 Capacity commercialised on 22 satellites, 20 of which are of European origin
4 Serving 5 continents: Europe, Africa, Asia, North and South America
4 Revenues of 715 M€ (2002/2003)
4 Active over a diverse range of industries and markets4 1300 TV channels4 750 data networks4Mobile services4 Broadband services
4 Distribution to 107 million homes via DTH or cable
4 27.7% equity interest in HISPASAT
Eutelsat’s Portfolio of Activities
Direct broadcasting of television channels and radio programmes
Television channel distribution to cable networks
Contribution links
Professional video networks for programme exchange and newsgathering via satellite
Leading operator in Europe75% of 2002/2003
consolidated revenues
VIDEO APPLICATIONS
Private networks for interconnecting LAN/WAN and extending voice networks
Data broadcasting services to wide audiences
Corporate television and videoconferencing services
Professional mobile services for messaging and positioning
Leading operator in Europe15% of 2002/2003
consolidated revenues
PROFESSIONAL DATA NETWORKS
Internet backbone connections for Internet Service Providers
Broadband Internet access for corporate and private users
Virtual Private Networks via satellite
Multicasting and distribution of IP content
Emerging market3% of 2002/2003 consolidated
revenues
BROADBAND SERVICES
The Digital Divide: A Reality
Projected DSL Coverage in Europe
50%
60%
70%
80%
90%
100%
2001 2002 2003 2004 2005 2006 2007 2008 2009
Cov
erag
e of
all
site
s
Who is left out?10% of the population= 15 million householdsMainly in rural areas
Access to DSL
No Access to DSL
Part of Europe’s Population is Left BehindDigital Divide: an essential part of e-Europe objectives
Source: CMA
Germany in Comparison
Germany: Population Out of Reach of DSL
Germany: Population Out of Reach of DSL
Households Out of Reach:European Comparison
Households Out of Reach:European Comparison
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
2003 2005 2007
HouseholdsBusinesses
4.4M
0.4M
‘000
2003 2005 2007
Germany 17% 14% 11%
France / UK 30% 22% 14%Italy 33% 24% 15%
Source: Omsyc
Why Satellite?
4 No geographic constraints within coverage area of satellite
4 Economics are independent of local demographics (see next slide)
Available EverywhereAvailable
EverywhereQuick DeploymentQuick Deployment
Possibility of Bundled Offering
Possibility of Bundled Offering
4 Service available today
4 Installation normally takes < 2 hours
4 TV
4 Multicasting
Cost Comparison DSL - Satellite
Terrestrial technologies:
exponential increase in installation costs
when density decreases
0
50
100
150
200
250
300
1 10 100 1000 10000 100000
Sites per square km
Eur
o pe
r sub
scrib
er p
er m
onth
DSL
Satellite Today
Objective
Cost of Broadband Access by Technology
Broadband Services on Eutelsat Fleet
More than 100 distributors
Partner platforms (examples)Partner platforms (examples)Eutelsat platforms and VASEutelsat platforms and VAS
4 Market presence through distributor networks in Europe, Middle Eastand Africa, providing turn-key solutions to SMEs, local authorities and the general public
More than 10,000 terminals deployed in Europe at end-June 2003
Eutelsat Value-Added Services
4 Broadband Internet & multimedia services
4 Broadband IP services
4 Enterprise network solutions with bandwidth on-demand
4 Meshed data networks
ResidentialOne-way services
BusinessesTwo-way services
Internet Satellite Subscribers in Europe
99.497.176.5
76.0
63.553.550.5
0
20
40
60
80
100
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2002 2003
‘000
(North America:
227.5)
Satellite is far from reaching its potential in
Europe!
DSLCable
4.65M2.35M
14.1M5.1M
Source: Digit
Key Challenges to Develop Satellite Broadband
4 Reduce price gap with DSL
4 High cost has limited uptake of satellite broadband4 Terminal: 900€4 Subscription:
120 - 500€
4 Incumbents (Telcos) have little interest in promoting satellite
4 Small service providers and distributors often cannot provide adequate marketing and customer support
4 Satellite associated with TV
Reduce PriceReduce Price Improve DistributionImprove Distribution Raise AwarenessRaise Awareness
How Can the Public Sector Help?
4 The public sector can play an important role in the development of broadband via satellite
4 The short-term objective is to jump-start the industry 4 The objective is to enter into a virtuous circle of subscriber growth
and decrease in cost of service4 A program of 300K terminals over 5 years would bring the
terminal down to 550€, 1M terminals to 270€
4 Several measures can make a significant difference4 Fiscal incentives in order to reduce the cost of the terminal (see
next slide)4 The public sector as a customer4 The public sector as an aggregator for third party customers
Example of Fiscal Incentive: France
4 The French Government has recognised satellite as the best solution to reduce the digital divide
4 Priority has been given to the business sector in order to retain employers in underserved regions
4 From 1 January 2004 to 31 December 2006, the cost of a satellite terminal can be deducted from corporate profits
Medium-Term Objectives
4 The cost of broadband access via satellite can be dramatically decreased with a new generation of satellites4Dedicated to Internet access
4 Such a programme has to be initiated by the public institutions, with the involvement of private companies from the beginning4Government support especially in R&D for space segment and
terminals
4 While this could be done on a national level, a European solution would be preferable
Thank You!
Holger IschebeckBusiness Development Manager
Eutelsat S.A.Tel. +33 1 5398 [email protected]