Facilitating Satellite Networks Thru Effective Regulation David Hartshorn Secretary General Global VSAT Forum.

Facilitating Satellite Networks

Thru Effective Regulation

David Hartshorn

Secretary General

Global VSAT Forum

2

-

20,000

40,000

60,000

80,000

100,000

120,000

95 96 97 98 99 00 01

Africa/ME

Asia

Europe

L America

N America

Emerging-Region Sales Emerge*

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

95 96 97 98 99 00 01

*Bookings: Doesn’t Include Consumer SalesSource: COMSYS

3

Applications Segmentation

N.A. Eur. A.P. L.A. A/MERetail ******* * ****Auto. ****** ******* **Utility ***** ** ******Finan. ** **** ******* ******* ******Manf. *Svcs. ***** **** *** ***Info. **** *** *

Source: COMSYS www.comsys.co.uk

4

33

13.50 0

93.7

19.630 0.68

263.3

39.46

4 7.4

392.7

47.12 32.87

15.89

0

50

100

150

200

250

300

350

400

Jan-98 Jan-99 Jan-00 Apr-01

ISP Links Hybrid Access 2-Way Access Content Distribution

Internet Satellite Use*

Source: DTT Consulting *36 MHz Equivalent

5

Broadband Satellite Access Market Forecasts Enterprise Demand (sites)

Enterprise Broadband Satellite Demand (2000-2006)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2000 2001 2002 2003 2004 2005 2006

Year

Mill

ion

s (

Sit

es

) Africa/Middle East

Latin America

Asia-Pacif ic

Europe

North America

Rank

1. Asia/ Pacific

2. Europe

3. North America

4. Latin America

5. Africa/ Middle East

6

Broadband Satellite Access Market Forecasts Enterprise Access Service Revenue (Demand vs. Supply)

Enterprise Broadband Satellite Access (2001-2006)

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

2001 2002 2003 2004 2005 2006

Year

$Bill

ion

s

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

mill

ion

s/s

ite

s

High Grow thRevenue

Low Grow thRevenue

Total DemandSites (millions)

7

Policy Implications

Satellite Has a Strong Track Record Essential Tool for Broadband Delivery Policy Can Facilitate Its Use To Elevate Social Standards:

– Economic– Health– Education

8

But...

High Licensing Fees Slow Licensing Process Lack of Transparency Restricted Use of Satellite Capacity Costly Type Approvals Requirements

9

GVF: The Industry Association

Comprising Int’l VSAT Community 155 Members Non-Profit Non-Partisan Serving as Industry’s Unified Voice

10

GVF Regulatory Working Group

A bridge between regulators and the global satellite industry

Develop and promote effective practices

Help make VSAT licensing information transparent and easily obtainable

Members from 45 Nations

South, East & West Africa

Western & Eastern EuropeNorth & South America

North & Southeast Asia

Australasia

Indian Subcontinent

Middle East

CIS

The GVF Brain Trust

Carriers7%

Satellite Operators

13%

Associations2%

Consultants & Publishers

9%

Legal1%

Value Added Service

Providers16%

Systems Integrators

25%

Manufacturers Earth Satation

Equipment27%

13

The Independent Regulator

0

10

20

30

40

50

60

70A

fric

a

Am

eric

as

Ara

bSt

ates

Asi

a

Eur

ope

Percentage ofCountries with NewRegulators - 2000

Source: ITU

14

Broadband Satellite Reform:Acting Nationally, Thinking Regionally

Challenge:– Onerous Licensing– Non-Transparency– Slow Type Approvals– Stifled Competition– Restricted Access to

Satellite Capacity

Solution/Trend:– Licensing Reforms– One Stop Shops– MRA, Self Declaration

– Liberalization– Improved Access to

Satellite Capacity

15

1. STREAMLINED LICENSING

16

The Blanket Licensing Concept

Define Criteria for VSAT Terminal Type That Ensures No Interference Caused

Issue Single ‘Blanket’ License for Thousands of Identical-Type VSATs

Vital Services Are Provided Faster and at a Much Lower End-User Cost

17

VSAT Licensing In Europe

Two Years Ago CEPT Case Study Individual Terminal Licensing, Plus

– Cost based pricing– Cost based pricing with differentiation– Administrative incentive pricing– Auctioning

18

Technical elements: A BG

CR

CZ

D DK

EST

FI

FR

H IRL

I LV

N PL

P E S CH

UK

Transmitter output power X X XData bit rate XNumber of channels used XFrequency assignment X XFrequency band X X X X X X XBandwidth used X X X X X X XUse of exclusive bands or not X X XType of station X XType of link X

Type of serviceType of signal transmitted XBroadcasting for radio or TVProvision on a commercial basis X X XDigital vs analogue X

Administrative factorsNeed for co-ordination or not X X XCharge per transmitter/station X X X X X X X X X X XCharge per link X XMonthly X X XYearly X X X X X X X X X X X X XAd-hoc inspection X

Size/reach of the systemNumber of stations X X X X XGeographical coverage X X XGross annual revenues XSize of the company X XDuration of licence X X X

Type of feeFrequency assignment feeFrequency utilisation/use X X XSpectrum fee X X X X X X X X X XOne-off administrative fee X X X X X X XYearly administrative fee X XTelecom licence fee X X XEMC fee X XLinear vs decreasing fee XFee for control/monitoring X X X X

19

European Fees Case Study

Bi-directional = 64 kbps 200 kHz - 1 MHz 10 ES + Hub Located in Country

1 Data Service 1 Satellite Connect to PSTN No Coordination

Needed

Source: SAP-REG

20

1st-Year VSAT Licensing Fees, ‘00

0

5000

10000

15000

20000

25000

30000

Bel

gium

Den

mar

k

Fin

land

Fra

nce

Ger

man

y

Gre

ece

Ital

y

Por

tuga

l

Swed

en

Net

herl

ands

U.K

.

E

Source: SAP-REG

21

VSAT ‘Decisions’ Adopted

If Spectrum Is Not At Risk And Harmful Interference Is Unlikely… Radio Equipment Could Be Exempted from

An Individual License

“ROES” Meet Those Criteria “VSATs” Meet Those Criteria “SITs” and “SUTs” Meet Those Criteria

22

“VSAT” Licensing Exemption Example

Ku-band < 2W RF Power < 3.8M Aperture < 50 dBw EIRP ETSI Definition of “VSAT” > 500M Outside Airport Perimeter < 20 V/M Aircraft Immunity Level

ERC/DEC(00)05

23

Implementation, Most to Least

0

5

10

15

20

25

30

Decision Number

Num

ber o

f cou

ntri

es

24

No. of Implementations, by Country

0

5

10

15

20

25

30

35

40

CEPT Countries

Nu

mb

er

of

De

cis

ion

s Im

ple

me

nte

d

25

Implementation % of Sat Decisions & of all Decisions

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Countries

Perc

enta

ge

% Impl. of all DECs

% Impl. of Sat DECs

26

Which Is Facilitating Fee Harmonization in Europe*

0

50000

100000

150000

200000

250000

300000

*Assuming 100+ Terminals, 150 kHz BandwidthSource: ERC

27

2. TRANSPARENCY AND ONE STOP SHOPS

28

The Regional ‘One Stop Shop’ Concept Uphold National Sovereignty While:

Providing Access to Licensing Data

For Each Country in a Region

Via One URL

29

NRA

NRA

The OSS Procedure

Service Provider

NRA• Examination• Final answer

SHOP• Screens appli- cation form(s)• Sends to NRAs

30

WWW.ETO.DK

17 Countries Provided Reg. Data 13 Countries Implemented CAF 7 Countries Implemented Elec. CAF Getting 1,800 Hits Per Month

31

3. TYPE APPROVALS

32

Eliminating Unnecessary Regs

Radio & Telecommunication Terminal Directive (R&TTE)

Now Implemented in the EU Ends the ‘Type Approval’ Process Manufacturer Declares Conformity

33

4. Improved Access to Satellite Capacity

34

Open Skies

Flexibility to select from all resources Permits satellite operators to compete Results in more content options and

lower prices for customers.

Any person or entity authorized to operate an earth station could be allowed to directly access all ITU-coordinated satellite systems.

35

Transponder Utilization, ‘99-00

0 500 1000 1500 2000

North America

Latin America

Western Europe

Central & Eastern Europe

Africa & Middle East

Southern Asia

Asia-Pacific

36-MHz equivalent units

Voice &DataVideo

Unused

Source: Euroconsult

36

Broadband Network Solutions

Sector Sites ServicePeugeot 4,200 (Eur.) 2-Way DataArgyle 1,300 (Eur.) 2-Way DataLottery 3,000 (U.K.+) 2-Way DataReuters 5,000 (Eur.+) 1-Way DataVISA 500 (Eur.+) 2-Way Data

WEAT 1,200 (Ger.+) 2-Way DataUN-NTBTO ~1,000 (Eur.+) 2-Way Data

Source: AT&T Global Network Services

37

Growth of VSAT Industry in Europe

From 2nd Lowest VSAT Use… To 2nd Highest VSAT Use In Just Five Years