Digital Communities: Providing Sustainable Broadband Infrastructure

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Digital CommunitiesProviding Sustainable
Broadband Infrastructure

• David Hartshorn
• Secretary General
• Global VSAT Forum

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The Global VSAT ForumConnecting the
Unconnected Via Satellite

• EU-Based Non-Profit Association
• 200 Member Companies
• Enabling Elevated Socio-Economic Development
  Thru
• Effective Regulation Policy
• Capacity Building
• Co-ordination of Telecom Infrastructure Support

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Decreasing Pricing Sets Stage for Non-Urban
Deployments
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Satellite Success Stories In Africa
Small Networks Large Networks
Broadband, ISPs
Enterprise
Carriers
Government

• Retail/ Hospitality
• Gaming
• Banking, Finance
• Oil Gas
• Automotive
• Healthcare
• SCADA

• Corporate Telephony
• Rural Telephony
• PCO
• Payphones
• Backbone Interconnection
• GSM backhauling

• High-speed Internet
• E-mail, Intranet
• Internet kiosks
• DSL like service
• POPs trunking

• Rural communication
• Education
• Military
• Aviation
• Post offices
• Disaster recovery
• e-Voting
• e-Medicine
• e-Government

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Rural Satellite Project Samples in Latin America

• Compartel Colombia over 9,000 VSATs
• Public Call Offices
• Tele Centers
• Peru FITEL 6,500 VSATs
• Public Call Offices
• Internet Kiosks
• GESAC Brazil 3,200 VSATs
• Internet Kiosks

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Rural Satellite Project Samples, Contd

• Telkom South Africa 3,500 VSATs
• Payphones, Small Businesses
• Telmex Mexico 3,000 VSATs
• Public Call Offices
• CTR Chile 1,800 VSATs
• Stand Alone Payphones
• Tibet Telecom 1,300 VSATs
• Public Call Offices
• Embratel Brazil 1,122 VSATs
• Public Call Offices

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The Emergence of Hybrid SolutionsSatellite-Based
GSM in the Developing World

• Satellite is the Primary Method of Linking
  Remote GSM Base Stations with the PSTN
• Massive GSM Rollout in Non-Urban Africa Was
  Enabled by Use of Satellite Backhaul and Included
  Operators Such As
• Vodacom
• MTN
• Celtel

• NGO Uconnect Linked The Kashozi Primary Computer
  Lab with Ericsson GSM Data

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Satellite-WiFi Broadband Access Model
Satellite-Based Wi-Fi in Villages
Sat. Receiver/ Router
Satellite Service Provider Uplink
Sub. Management
WiFi Access Point
WiFi Access Point
Sat. Receiver/ Router
Sub. Management
WiFi Access Point
Sat. Receiver/ Router
Internet Backbone
Sub. Management
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Satellite-Based Wi-Fi A Return on Investment
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Satellite-Based WiMAX Reaching Remote Areas
Sustainably
Backhauling Broadband
Netspan NMS
IP Core Network
VoiceMAX
Softswitch
PSTN / Voice Network
Source Gilat
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Base Station Site
WiMAX InDoor Unit
WiMAX Antenna
WiMAX Base station
Satellite Dish
IPSTAR User Terminal
Network Appliance
Source Intel/USAID
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End User Location
Source Intel/USAID
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WiMAX and Satellite Sustainability Factors

• Assumptions
• Residential customers ARPU is very low (5-10)
• Emerging markets remote areas have no/few
  businesses
• Where businesses exist, they will pay 250-1000
  per month
• Achieving profitability from residential
  customers only is very difficult
• Will require one or more subsidies
• Equipment
• Space segment
• Monthly customer charges

Source Gilat
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Wi-MAX-Satellite Sample Business Model

• Locations 150
• Households per location 100
• Penetration 35 (35 sites total 5250
  subscribers)
• Residential service 128Kbps/64Kbps
• Businesses penetration 4 1.4 businesses per
  site
• Business service 256Kbps/128Kbps
• Residential Monthly charges
• Service 10 Telephone 5 (calls within village
  are free) One time hook up 5
• Business Monthly charges
• Service 250 Telephone 5 (calls within
  village are free) One time hook up 5
• Required subidies to become profitable
• CAPEX 6.7M for entire deployment (more
  required for growth)
• Result Breakeven in 1st year

Source Gilat
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Usages

• Community
• News, Chat, on-line music
• Tourism
• eMail, Blogs, Photo-sites
• Tourist Guides
• School
• Geography, Math, et. Al.
• Farmers
• Crop and disease information
• Health Clinic
• Health and pharmaceutical information
• VoIP

Source Intel/USAID
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The Opportunity

• Public-Private Sector Collaboration, Where
• Local Government (/or PTT) Provides Enabling
  Regulatory Environment and, Possibly, Seed
  Funding
• EU Provides Matching Grant
• GVF Provides Capacity Building, Establishes
  Private-Sector Support
• Private Sector Provides In-kind Support and
  Delivery of Services to Selected Stakeholders
• NGOs, Others Provide Visibility, Content,
  Applications to User Community

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The GVF Stakeholders

• Manufacturers Provide Low-Cost Earth Stations
• Operators Deliver Affordable Bandwidth Pricing
• Value-Added Resellers Enable Local Support
• Consultants Offer Expertise Skills
• GVF Provides Capacity Building, Private-Sector
  Liaison

  Trade names or brands may be claimed as the
property of others.  
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Funding Resources For Rural Projects
Comments
Funding Source
Example
USO Fund - indirect contribution by the
operators of total/ designated revenues,
of license fees,etc.
usually 1-5 of total/designated revenues,
and/or license fees
Colombia, Peru, Guatemala
Required very strong regulatory body to implement
Brazil, India, Mexico, Angola, Telkom SA
Direct investment by the operators
Government budget for rural dev.
significant
Chile, Brazil GESAC , China XJ, Tibet
Government budget/ subsidy
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The European Opportunity

• Direct Value Added to EU-Funded Projects
• Establish Digital Communities in Underserved
  Areas
• Build Upon Existing
• Satellite and Wireless Industry Capabilities
• Universal Service/Access Funds
• Momentum in Other Last Mile Initiatives

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Contact

• David Hartshorn
• Secretary General
• Global VSAT Forum
• David.Hartshorn_at_gvf.org
• www.gvf.org