Satellite communication comeback

By Jennigay Coetzer - Business Day, 9 June 2009

Satellite could play a more prominent role in the broadband communication market in South Africa.
Over the past five years, the cost of satellite bandwidth has dropped by 50% and the cost of VSAT terminals has dropped to $2,000 to $5,000 from $25,000, which can be spread by adding it to the monthly rental fee.
Maximum throughput speeds have also improved dramatically from 20 to 25 megabits per second (Mbps) to 120 Mbps over the past 10 years, says Geoff Hardwick, MD of Gateway SA.
Satellite it is often used to support ATM networks, bank branches, retail chains, filling stations and  and other applications that require consistent communication over a widely spread network.
It is widely used as back up for other forms of communication, is often the sole means of communication for farms, game lodges, clinics and other more remote operations and is ideal for distributing information on a one to many basis.
“We are dealing with a company that is looking at distributing promotional content overnight to multiple stores,” says Hardwick.
Smaller VSAT terminals with similar throughput capabilities to an ADSL line are also now available for as little as $600.
He says a Pan European network was recently launched to provide data communication services to homes that are not within reach of an ADSL service, and there is an opportunity to build similar networks in SA.
In the UK, aids awareness and other health-related video content is distributed to clinics over satellite and the same could be done in SA.
Until the recent deregulation of telecommunication infrastructure, Sentech, Transtel and Telkom had the monopoly over satellite services in SA.
But the issuing of new electronic communications network Services licenses to hundreds of service providers that allow them to build their own infrastructure will create competition in this area for the first time.
For example, Gateway Communication has been building satellite networks in other parts of Africa for 15 years, providing services to 1000 customers across 4000 sites and can now do the same in SA.
The company is building its own satellite teleport in Pretoria with five to six large antennas that will point to multiple satellites.
One of Gateway’s multinational customers in the financial sector is hosting applications for all its global operations from a central data centre in Johannesburg, including branches in Africa.
This involves a dedicated satellite connection that is capable of carrying millions of transactions at speeds of six to 12 Mbps.
“Many corporate organisations are looking to expand into Africa and maintain control over these operations from SA,” says Hardwick.

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Tags: ADSL, bandwidth, communication, Gateway Communication, Geoff Hardwick, Sentech, Telkom, Transtel, VSAT