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ASK THE COMSATCOM EXPERT PART I
In the forthcoming few editions of the COMSATCOM Scoop, we’d like to address some of your biggest COMSATCOM questions or concerns in order to help you become better informed buyers of COMSATCOM services. Please send your questions to the COMSATCOM expert. We look forward to hearing from you!
Here are answers to some essential questions that you may have concerning COMSATCOM:
What are the Pros and Cons of a Satellite Network?
Pros:
- Satellite networks allow for precise, pinpoint connections between any two points on earth without terrestrial interruptions. An especially valuable aspect of this from a DoD standpoint would be providing secure, real-time intelligence to troops in the field regardless of the physical terrain.
- Satellite networks provide the highest information assurance among all communication networks. Information can travel directly from point A to point B, bypassing any 3rd party terrestrial infrastructure which would otherwise make the network prone to security leaks.
- Satellite networks provide unmatched reliability. A typical satellite network can assure 99.95% availability to all sites, regardless of location. Reliability is critical for DoD, especially when controlling unmanned vehicles (UAVs). Connectivity strength between the UAV and the control center can make the difference between mission disruption and mission success.
Cons:
- Establishing a satellite network is more costly than terrestrial or wireless networks. The estimated average launch costs single-handedly exceed $200 million. As a result, the market price of a standard 36 Megahertz (MHz) satellite transponder lease is around $1.5M, even though prices may fluctuate daily and differ between regions, frequency bands, and other service factors. COMSATCOM costs can be mitigated by such strategies as aggregating requirements on a single lease or purchasing multi-year leases.
- There is a large propagation delay in SATCOM referred to as latency. Latency results from the immense distances that are traveled by SATCOM signals. In a satellite network, the signal must travel from the ground terminal to the satellite and back. For a geostationary satellite, there is an estimated round trip distance of 92,000 miles for a typical two-way communication channel. On average, satellite networks have a latency of 500-700 milliseconds (ms), which is 400-500ms higher than a terrestrial network. An example of latency is the short voice lag in a phone conversation over a satellite network which is often expected by SATCOM users.
What are the major COMSATCOM market segments?
Market publications and studies of the COMSATCOM services industry point to three broad market segments: 1) Transponded Capacity, 2) Subscription Services, and 3) End-to-End Solutions. Transponded Capacity is essentially a lease for bandwidth-only from a particular transponder on a particular satellite; the capacity of the lease is usually measured in MHz. To fully utilize the bandwidth capacity, supporting equipment, teleport, and terrestrial requirements are required and purchased separately.
Recent market trends signal a shift from transponded capacity-only lease offerings to more comprehensive solutions. Subscription Services are defined as pre-engineered, commercial over the counter (COTS), turnkey managed service solutions. They are often compared to cell phone services where a monthly service fee is charged for the number of minutes used for the month. A notional example of Subscription Services would be the Navy purchasing Inmarsat Fleet Broadband COTS service for its ships with nearly world-wide coverage.
End-to-End Solutions are services offering integrated, customized solutions for specific customer requirements, rather than a pre-engineered, pre-packaged market offering provided through a Subscription Service. A notional example of End-to-End Solutions would be the Air Force purchasing a fixed cost, customized, all inclusive SATCOM solution for its latest fleet with coverage of the continental United States.
To hear more from the COMSATCOM expert and to have your questions answered, stay tuned for our next COMSATCOM Scoop issue!
(Posted: January, 2010)