Satellites Reach the Rest of the World

Existing telecommunications satellites have a large footprint — they can reach almost any point in the world. So can satellite Internet access connect areas of the third world where even wireless is impossible? Protocol gateways and two-way connections may make it happen.

by Alex Goldman
Associate Editor, ISP-Planet
[July 19, 2000]

Until recently, affordable satellite Internet links were limited to areas with reliable land lines, because although a satellite could send web pages, it could not receive. That has changed. New "two-way" technology enables satellite Internet access in places that do not have phone lines.

Satellites are different
However, a recent article ("Protocol Gateways Help Overcome Satellite Limitations") points out that TCP can hinder satellite Internet access. This is because TCP was designed for landlines, with much congestion but little interference or latency. Satellite connections are the opposite: there is little congestion but a great deal of interference and latency.

When TCP starts experiencing packet loss, it reduces transmission on the assumption that congestion is the problem. In a satellite connection, the appropriate response is to increase the transmission rate becasue actual packet loss is occurring, so several copies of the same packet must be sent to the satellite to ensure that at least one copy is received.

A good solution, therefore, is to have, in the middle, a protocol gateway that translates TCP traffic into a "satellite protocol" with a similar protocol gateway at the destination, translating the satellite protocol back into TCP.

One way
Hughes' "one-way" terminals are being implemented in the United States, where local phone lines are dependable, and where many people already own computers and modems. Hughes owns the popular DirecTV network, and ISP revenues are not vital to its success. Recently, it announced two major partnerships, with Juno ("Juno Taps Into Satellite Services") and AOL ("AOL, Hughes to Test Satellite Service"). These promise high-speed downloads through the satellite, but since the return path is through a landline modem, upload speed is limited.

Buck the government
Some ISPs are using satellites to get around local telco monopolies. Our recent article on IFXCorp ("Fast Growth, Big Opportunities") described a company that uses local fixed wireless broadband connected to Miami by satellites to avoid local COs and the governments that control them.

Where Mumbai is next door to LA
The real growth, however, is in new two-way satellite terminals. Gilat, an Israeli company and a leader in VSAT access, defines a VSAT thus: "VSAT, or Very Small Aperture Terminal, is a sophisticated communications technology that allows for the use of small fixed satellite antennas in providing highly reliable communication between a central hub and almost any number – tens or thousands – of geographically dispersed sites. VSATs are taking on an expanding role in a variety of interactive, on-line data, voice, and multimedia applications."

In a recent article ("VSATs Move Beyond Corporate Networks") Shelley Revkin, who works for a Gilat subsidiary, touts the technology. He sees schools and health care providers as clients who can now be reached by this improved technology.

Nations such as the United States that have an accessible, reliable infrastructure will not be using Satellite Internet services extensively, but Frost & Sullivan analyst José del Rosario says, "demand is specifically high for e-commerce applications in emerging markets like India that lack or do not have adequate telecom infrastructure." Frost & Sullivan's July report on the market suggests that large, open nations like Australia, and nations with internal barriers, such as the Philippines (which is a collection of islands) will also benefit from VSAT technology.

There is a prominent example from recent news: Skumars.com's plan to use VSAT technology to power 30,000 internet kiosks in India. India.internet.com reported on June 26, 2000 ("Skumars.com Inks Deal With IBM For Hardware") that Skumars is collecting $4651 per franchisee, and providing hardware such as computers, modems, printers, and other paraphernalia associated with running a kiosk. Skumars.com will also provide each of the 30,000 kiosks with a VSAT dish, but it is investigating other means of providing broadband access.

Meanwhile, back at the ranch
So will VSAT technology affect the United States? Says del Rosario, "In the United States, Gilat is going after the rural market, which it believes to be 10 million households, and they hope to tap 10 percent of that market or 1 million subs. Satellite companies are also looking to tap the corporate segment in their service rollouts."

—End