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GETTING THE MOST OUT OF HIGH THROUGHPUT SATELLITES

Market Trend

Rev.5 06/2019

By Jo De Loor, VP Market Development

at Newtec

HTSGetting the Most Out of

High Throughput Satellites

Over the last several years we have seen High Throughput Satellite (HTS)-based

services thriving all over the world. Many satellite operators have launched and

brought into service Ka- and Ku-band HTSs into all regions and HTS capacity

on its way to the market is still rising incrementally as well. Meanwhile, HTS-

based services have found their way to end-users in different vertical markets,

ranging from consumer broadband and enterprise VSAT to cellular backhaul

and mobility services for aero and maritime.

End-users in the different vertical markets are compelled by the benefits of

these HTSs and the high power spot beams which, combined with smaller end-

user terminals, provide higher throughputs, improved service levels and more

cost-effective services. According to Northern Sky Research (NSR), the GEO

HTS capacity demand in 2017 was about 528 Gbps and estimated to grow

to 1.9 Tbps by 2021, corresponding with a Compound Average Growth Rate

(CAGR) of more than 63%.

This massive GEO HTS growth is mainly driven by the following markets:

mobility for aero/maritime, cellular backhaul and broadband/enterprise VSAT.

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Embracing HTS Connectivity Services: Your HTS Platform Benefits

HTSGetting the Most Out of

High Throughput Satellites

Broadband Services - Enabling the End-user ARPUDemand for HTS-based broadband services is growing rapidly in all regions of the world with an estimated demand of 1.4 Tbps by 2021. With smartphones penetrating every place in the world, including black-spots not serviced by terrestrial services, the key challenge for service providers when meeting this end-user demand is to deliver services matching the customer spending for broadband. Part of the market, with the higher Average Revenue per User (ARPU) potential, can be addressed using ‘direct-to-home’ satellite broadband services, while the lower APRU customers who can only spend a few dollars per month can be served using satellite-based community Wi-Fi hotspots.

To address this high-volume broadband market, it is essential to deliver good user experience, while also keeping Operating Expenditure (OPEX) as low as possible by leveraging the best bandwidth efficiencies possible. Furthermore, the cost of onboarding a new subscriber needs to be well managed by optimizing every part of the ‘customer acquisition cost’ – for example, cost-effective VSAT terminals, optimized logistics to get the equipment to the end-user and easy and fail-safe VSAT terminal installation to reduce installation costs.

True HTS-optimized platforms can address all these challenges in the most optimal way.

Cellular Backhaul – Addressing the MNO Reach

Alongside this, Mobile Network Operators (MNOs) need solutions to extend their service coverage into places where there is a lack of terrestrial infrastructure. HTS-based satellite services have proven a very good fit for MNOs to complement and extend their mobile services coverage for 2G, 3G and 4G. It is forecasted that by 2021, 272 Gbps, representing a CAGR of 62%, of mobile backhaul traffic will be backhauled over HTSs.

When doing so, delivering a good user experience is key for MNOs, including the desired level of throughput and reliable services. Optimized OPEX and Capital Expenditure (CAPEX) of the satellite backhaul services is also essential to enable an MNO’s business case. Remote sites are often located in places without reliable mains power, requiring the remote tower to be powered by generators or solar power. Lower power consumption helps to further optimize the total CAPEX and OPEX cost of the remote sites.

To address these challenges, HTS service platforms need to be capable of delivering the throughput and packets per seconds for even the most demanding sites and include embedded optimization technologies to deliver the required 2G, 3G and 4G user experience. They should also be able to deliver highly reliable services in Ku- and Ka-band, with the lowest possible OPEX and terminal CAPEX.

Mobility for Aero and Maritime – Delivering the Mobility PromiseSatellite has and will keep its unique value of being able to deliver connectivity to any place in the world, including oceans and remote, vast places without any terrestrial infrastructure. The mobility Satcom market is growing at a very fast pace, with demand for GEO HTS mobility expected to surge from 19 Gbps in 2017 to more than106 Gbps in 2021 (CAGR 53%). Importantly, although mobility services represent only 5.6% of the HTS capacity demand, the aero, maritime and land mobile market accounts for 18% of the total HTS revenues.

The mobility market has very diverse service requirements: from the very bandwidth-hungry cruise ships requiring throughputs in the range of 100Mbpst to 1 Gbps, to in-flight broadband connectivity providing internet access and live television in the air, to other maritime segments such as super yachts, merchant vessels and shipping boats. In the past, delivering services for such diverse mobility requirements was costly and required complex operations, including multiple platforms for each sub-segment, dedicated and very inefficient bandwidth usage to serve the very small antennas on airplanes and lack of control on beam switching, resulting in inefficient use of satellite capacity and high operational complexity.

Today, however, the latest technological innovations, such as those included in the Newtec Dialog® platform, have revolutionized the way such a vast range of mobility services is addressed. With Newtec Dialog, service providers can deliver on the mobility promise and can address the maximal market at the lowest service cost while providing the best connectivity experience. By addressing the mix of maritime/aero/fixed from a single platform, the previous compromises on cost and operational complexity are eliminated.

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HTSGetting the Most Out of

High Throughput Satellites

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HTS DEMAND AND REVENUES IN 2021

GEO HTSCAPACITY DEMAND

1.9Tbpsby 2021

Mobility 106 Gbps 5% 18%

Government 49 Gbps 3% 6%

Cellular Backhaul 272 Gbps 14% 17%

Enterprise 113 Gbps 6% 8%

Broadband 1.4 Tbps 72% 51%

CAPACITY REVENUE

REVENUECAPACITY

CAPACITY

REVENUE

REVENUE

CAPACITY

CAPACITY REVENUE

Sources: NSR Global Capacity Demand and Supply, 14th Edition 2017Wireless Backhaul via Satellite, 11th Edition 2017

0.5 Tbps2017

Monetize Your HTS Services and Minimize Your Business Risk with Newtec DialogNewtec Dialog is an innovative multiservice platform which ensures optimal execution of your HTS services strategy. It enables HTS benefits to be maximized and provides unprecedented bandwidth efficiencies and throughputs thanks to the 500 Mbaud DVB-S2X forward and Mx-DMA® return link. Additionally, it delivers the best connectivity experience for your most demanding customers and lets you enlarge your addressable markets in key HTS sectors for broadband, backhaul and mobility and expand into newly developing markets, enabled by small electronically-steered flat panel antennas.

Newtec Dialog is completely unique in its ability to optimally address the mix of fixed and mobility services and small and large antennas while removing the dramatic cost increase and operational complexity traditionally associated with legacy VSAT platforms. The platform is fully proven through Tier-1 service providers delivering HTS services in different verticals, including broadband, cellular backhaul and mobility.

The combination of maximal revenue potential and highest efficiency in OPEX and CAPEX – resulting in best total cost of ownership and the flexibility to diversify into all HTS verticals – assures operators of highly competitive and profitable services while minimizing the business risk, with the needs for different satellite services potentially changing over time.

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SHAPING THE FUTURE OF SATELLITE COMMUNICATIONS

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