The Satellite Communication Applications Handbook (Artech House Space .

Contents xiii 11.8.2 Subscriber Access and Connectivity 11.8.3 Network Security References 438 439 441 PART IV Service and Business Development 443 CHAPTER 12 Frequency Coordination and Regulation of Services 445 12.1 12.2 12.3 12.4 12.5 12.6 12.7 Sharing Radio Frequencies Structure of the ITU 12.2.1 Objectives of ITU Regulations 12.2.2 Regulatory Philosophy 12.2.3 ITU Sectors and Bodies The ITU Radio Regulations 12.3.1 Objectives of the Radio Regulations 12.3.2 Pertinent Content of the Radio Regulations 12.3.3 Table of Frequency Allocations 12.3.4 Coordination Procedures 12.3.5 Rules for Satellite Operations 12.3.6 Power Flux Density Limits International Frequency Coordination 12.4.1 The First Step in the Process 12.4.2 Frequency and Orbit Coordination 12.4.3 Terrestrial Coordination of Earth Stations World Radiocommunication Conference Additional Regulatory Approvals 12.6.1 Operation of Uplink Earth Stations 12.6.2 Type Acceptance of Terminals 12.6.3 Importation of Equipment 12.6.4 Approval for Construction and Installation 12.6.5 Usage and Content Restrictions 12.6.6 Competitive Entry 12.6.7 Licensing 12.6.8 Other Roadblocks Regulatory Environments in Different Countries and Regions 12.7.1 The U.S. Regulatory Environment 12.7.2 The European Experience in Orbit Assignments 12.7.3 Satellite Regulation in Japan 12.7.4 Satellite Operations in Asia and the Pacific 12.7.5 Satellite Regulation in Latin America 12.7.6 The Middle East and Southern Asia 12.7.7 Sub-Saharan Africa References 446 448 449 450 450 452 452 453 455 456 457 459 459 461 462 467 469 470 471 472 472 473 473 473 474 474 474 474 477 477 478 480 480 481 481

xiv Contents CHAPTER 13 The Business of Satellite Communication 483 13.1 The Satellite Marketing Challenge 13.1.1 Selling Hardware 13.1.2 Selling Services 13.2 Selling the Space Segment 13.2.1 FSS Transponder Segmentation 13.2.2 Space Segment Provision 13.2.3 Selling Occasional Video Service 13.2.4 Partial Transponder and SCPC Services 13.3 Value-Added Service Offerings 13.3.1 Entering the Competitive End-to-End Services Business 13.3.2 Selling Value-Added Services as a Systems Integrator 13.3.3 Maintenance Services 13.3.4 The Services Contract and Service Level Agreement Typical Content of a Satellite Application Contract 13.4 The Marketing Organization 13.5 Financing a Satellite System 13.5.1 Elements of Capital Budgeting Analysis 13.5.2 Sources of Capital for New Satellite Systems 13.5.3 Evaluating Venture Viability 13.6 Trends in Satellite Communications Business and Applications 13.6.1 Broadband Applications to Mobile and Fixed Locations 13.6.2 Focus on Valuable Segments 13.6.3 Satellites and the Digital Divide Reference 483 485 486 487 488 490 493 494 495 495 496 497 499 499 504 505 505 507 509 510 511 512 512 512 About the Author 513 Index 515

Preface The first edition of The Satellite Communication Applications Handbook established an important milestone in industry publications by defining the different application segments and providing up-to-date design and development information. As with any handbook, a sufficient percentage of the material lost its timeliness not long after the start of the new millennium. It was imperative, therefore, to update and expand its content to reflect the changes in application focus and industry structure. We did this in a way to preserve the methodical approach of the first edition while introducing a considerable amount of new technical and application information that has been gained through more recent experience and research. The handbook is intended for anyone interested in satellite communications, whether an active member of the industry or someone considering entry into one of its segments. The book can be read sequentially so as to follow the thread of developing ideas and processes, or it can be used as a reference on any of the specific topics, outlined next. A technical background, while helpful, is not necessary for understanding the principles and the majority of concepts in this book. Throughout the 1990s, the satellite communication industry experienced tremendous growth, surpassing the expectations of all who have contributed to its success. The gross revenues in 2000 reached 60 billion, big chunks of which were contributed by satellite manufacture, launch, satellite transponder sales and leases, ground equipment supply, and direct-to-home (DTH) TV and very small aperture terminal (VSAT) data networks. This book provides a comprehensive review of the applications that have driven this growth. It discusses the technical and business aspects of the systems and services that operators and users exploit to make money, serve and protect, and even have fun. The book is organized into four parts, which deal with the most fundamental areas of concern to application developers and users: the technical and business fundamentals, the application of simplex (broadcast) links to multiple users, duplex links that deliver two-way interactive services, and regulatory and business affairs that drive investment and financial performance. The 13 chapters of the book fall nicely into these general categories. Chapters 1 through 6 follow the first edition rather closely—they have been changed only to account for some of the new features developed over the intervening 7 years. Part I consists of the first three chapters. Chapters 1 and 2 provide the basis for designing any satellite communications application, which includes finding the most appropriate structure for and suppliers of systems and technology. As in the first edition, Chapter 2 takes the reader through the entire process of designing a satellite link with the methodology of the link budget (explained line by line). Issues xv

xvi Preface for the space segment are covered in Chapter 3 and now include details on both analog (bent-pipe) and digital onboard processing repeaters. The reason we include this here is because of the close tie between the application and the construction of the satellite repeater, particularly if it is of the digital processing variety. Chapters 4 through 6 (Part II) are presented as in the first edition to review the scope and detail of creating a satellite television application and system. The basics are covered in Chapter 4 from the standpoint of service possibilities: entertainment TV for local TV stations and cable, videoconferencing and business video, and distance learning. Chapter 5 covers the range of digital TV standards such as MPEG 2 and the H series of the International Telecommunication Union (ITU) standards. This provides the base for Chapter 6, which deals with the largest single application segment in our industry—DTH television broadcasting. New to the handbook (Chapter 7, also in Part II) is the application called Digital Audio Radio Service (DARS), now an established service in the United States thanks to XM Satellite Radio and Sirius Satellite Radio. Borne out of the innovative WorldSpace system that provides satellite radio programming to Africa, DARS is beginning to have the same strategic impact on terrestrial AM and FM radio as DTH had on cable and over-the-air TV. Part III consists of Chapters 8 through 11 and deals with two-way interactive applications for data and voice. Two chapters, rather than one, are now devoted to the important topic of VSAT networks for provision of two-way interactive data communications. Focusing on Internet-based services (e.g., IP networks), Chapters 8 and 9 cover the enhanced capabilities of satellitedelivered interactive data to homes and businesses. Chapter 8 reviews the uses of star and mesh VSAT networks for various applications, and Chapter 9 provides technical criteria and guidelines for how a VSAT network is sized and optimized. Chapters 10 through 13 follow the same content flow as Chapters 8 through 11 in the first edition. In Chapter 10, which covers fixed telephony networks, we have added material on the all-important topic of voice over IP (VoIP) over satellites. This adds to the foundation of satellite telephony for providing basic communications in remote locations and for temporary operations. Mobile telephony is covered in Chapter 11, from both geostationary Earth orbit (GEO) and non-GEO perspectives. Most of the Mobile Satellite Service (MSS) providers continue to use GEO satellite platforms to extend service beyond ships to include handheld devices and IP-based satellite modems. The technical and operational issues of providing MSS applications are covered in detail in this chapter. To conclude the second edition, we provide updated regulatory and business guidance in Chapters 12 and 13, respectively (Part IV). The procedures and issues surrounding how one obtains a satellite orbit slot and Earth station license are covered in Chapter 12. In some ways, the process has been simplified, such as with the 2001 edition of the Radio Regulations of the International Telecommunication Union. Issues of gaining access and licenses in specific countries continue to be a challenge, and so we cover this topic to give readers a head start in the process. Finally, the business of satellite communication is described in Chapter 13, where the industry is divided up by the elements of a typical satellite application. This gives developers of new applications a framework for organizing and managing the process of going from the idea to a revenue-generating resource or entire network.

Preface xvii Anyone entering this exciting field at this time has many options to consider and many avenues to follow. Fortunately, there is a great deal of useful information and experience available to anyone who wishes to do the research and explore its many dimensions. The origin of this book comes from the author’s journey of more than 30 years as an independent consultant and educator, at Hughes Electronics, COMSAT, Western Union, and the U.S. Army Signal Corps (where one really learns how to communicate). Teachers and other presenters may contact the author by e-mail at bruce@applicationstrategy.com for additional help in using this book as a text for a technical or business course on satellite communication.

PART I System Considerations

CHAPTER 1 Evolution of Satellite Technology and Applications Communication satellites, whether in geostationary Earth orbit (GEO) or nonGEO, provide an effective platform to relay radio signals between points on the ground. The users who employ these signals enjoy a broad spectrum of telecommunication services on the ground, at sea, and in the air. In recent years, such systems have become practical to the point where a typical household can have its own satellite dish. That dish can receive a broad range of television programming and provide broadband access to the Internet. These satellite systems compete directly in some markets with the more established broadcasting media, including over-the-air TV and cable TV, and with high-speed Internet access services like digital subscriber line (DSL) and cable modems. In addition, GEO and non-GEO satellites will continue to offer unique benefits for users on the go with such mobile services as twoway voice and data, and digital audio broadcasting. The accelerated installation of undersea fiber optics that accompanied the Internet and telecom boom of the late 1990s put more capacity into service than markets could quickly absorb. Curiously, these new operators claimed that satellites were obsolescent. Quite to the contrary, satellite communication continues to play an increasing role in backbone networks that extend globally. Just how well we employ satellites to compete in markets depends on our ability to identify, develop, and manage the associated networks and applications. To this end, this book shows how satellite technology can meet a variety of human needs, the ultimate measure of its effectiveness. My first work, Introduction to Satellite Communication [1], established the foundation for the technology and its applications. These have progressed significantly since the late 1980s; however, the basic principles remain the same. Satellite communication applications (which we will refer to as simply satellite applications) extend throughout human activity—both occupational and recreational. Many large companies have built their communications foundations on satellite services such as cable TV, direct-to-home broadcasting satellite (DBS), private data networks, information distribution, maritime communications, and remote monitoring. For others, satellites have become a hidden asset by providing a reliable communications infrastructure. Examples abound in their use for disaster relief by the Red Cross and other such organizations, and for instant news coverage from areas of conflict. In the public and military sectors, satellite applications are extremely effective in situations where terrestrial lines and portable radio transceivers are not available or ineffective for a variety of reasons. 3

4 Evolution of Satellite Technology and Applications We can conclude that there are two basic purposes for creating and operating satellite applications, namely, to make money from selling systems and services (efficient communications) and to meet vital communications needs (essential communications). The composition of satellite communication markets has changed over the years. Initially, the primary use was to extend the worldwide telephony net. In the 1980s, video transmission established itself as the hottest application, with data communications gaining an important second place position. Voice services are no longer the principal application in industrialized countries but retain their value in rural environments and in the international telecommunications field. Specialpurpose voice applications like mobile telephone and emergency communications continue to expand. The very fact that high-capacity fiber optic systems exist in many countries and extend to major cities worldwide makes satellite applications that much more important as a supplementary and backup medium. Satellites are enjoying rapid adoption in regions where fixed installations are impractical. For example, ships at sea no longer employ the Morse code because of the success of the Inmarsat system. And people who live in remote areas use satellite dishes rather than large VHF antenna arrays to receive television programming. Satellite operators, which are the organizations that own and operate satellites, must attract a significant quantity of users to succeed as a business. As illustrated in Figure 1.1, the fixed ground antennas that become aligned with a given satellite or constellation create synergy and establish a “real estate value” for the orbit position. Some of the key success factors include the following: The best orbit positions (for GEO) or orbital constellation (for non-GEO); The right coverage footprint to reach portions of the ground where users exist or would expect to appear; Service in the best frequency bands to correspond to the availability of lowcost user terminal equipment; Figure 1.1 A neighborhood created by a GEO satellite with many fixed antennas aligned with it.

Evolution of Satellite Technology and Applications 5 Satellite performance in terms of downlink radiated power and uplink receive sensitivity; Service from major Earth stations (also called teleports) for access to the terrestrial infrastructure, particularly the Public-Switched Telephone Network (PSTN), the Internet, and the fiber backbone; Sufficient funding to get the system started and operating at least through a cash-flow break-even point. Optimum footprint and technical performance allow a satellite to garner an attractive collection of markets. Importantly, these do not necessarily need to be known with precision when the satellite is launched because new users and applications can start service at any time during the operating lifetime of the satellite (typically 15 years). Anywhere within the footprint, a new application can be introduced quickly once ground antennas are installed. This provides what is called high operating leverage—a factor not usually associated with buried telecom assets such as fiber optic cables and wireless towers. Ultimately, one can create a hot bird that attracts a very large user community of antennas and viewers. Galaxy I, the most successful cable TV hot bird of the 1980s, established the first shopping center in the sky, with anchor tenants like HBO and ESPN and boutiques like Arts & Entertainment Channel (A&E) and The Discovery Channel. Many of the early boutiques have become anchors, and new boutiques, like The Food Network and History International, arrive to establish new market segments. New hot birds develop as well, such as Astra 1 in Europe and AsiaSat 3S in Asia. Users of hot birds pay a premium for access to the ground infrastructure of cable TV and DBS receiving antennas much like tenants in a premium shopping mall pay to be in an outstanding location and in proximity to the most attractive department stores in the city. In the case of cable TV, access is everything because the ground antenna is, in turn, connected to households where cable services are consumed and paid for. DBS delivers direct access to subscribers, bypassing cable systems. For a new satellite operator to get into an established market often requires them to subsidize users by paying some of the switching costs out of expected revenues. From this experience, those who offer satellite services to large user communities know that the three most important words in satellite service marketing are LOCATION, LOCATION, and LOCATION! This refers to the factors previously listed. Stated another way, it is all about connectivity to the right user community. Satellite operators, who invest in the satellites and make capacity available to their customers, generally prefer that users own their own Earth stations. This is because installing antennas and associated indoor electronics is costly for satellite service providers. Once working, this investment must be maintained and upgraded to meet evolving needs. On the other hand, why would users want to make such a commitment? There are two good reasons for this trend toward ownership of the ground segment by the user: (1) the owner/user has complete control of the network resources, and (2) the cost and complexity of ownership and operation have been greatly reduced because of advances in microcircuitry and computer control. A typical small Earth station is no more complex than a cellular telephone or VCR. As a result of strong competition for new subscribers, DBS and the newer S-DARS have

6 Evolution of Satellite Technology and Applications to subsidize receiver purchases. Larger Earth stations such as TV uplinks and international telephone gateways are certainly not a consumer item, so it is common for several users to share a large facility in the form of a teleport. User organizations in the public and private sectors that wish to develop their own unique satellite networks have a wide

Direct-to-Home Satellite Television Broadcasting 209 6.1 Relative Cost of Satellite DTH Versus Cable 210 6.2 DTH System Architecture 211 6.2.1 Basic Elements and Signal Flow 211 6.2.2 Compression System Arrangement 212 6.2.3 Suppliers of Key Elements 214 6.3 Satellite Architecture 216 6.3.1 Medium-Power DTH Satellite Systems 218 Contents ix