ASSESSMENT OF C-BAND USAGE IN ASIAN...
Transcript of ASSESSMENT OF C-BAND USAGE IN ASIAN...
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
Pacome Revillon, CEO Monday, June 16th, 2014
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ASSESSMENT OF C-BAND
USAGE
IN ASIAN COUNTRIES
CASBAA SATELLITE INDUSTRY
FORUM
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
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CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
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CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
C-band assessment: background and methodology
METHODOLOGY
• Study conducted from March to May
2014
• Review of public information, including
third-party publication and our own past
research,
• Dedicated interview process:
We performed interviews or received
written data from 48 public & private
organizations, of which 40 located in the
focus countries.
These organizations involved:
• Government and public agencies,
• Broadcasters,
• Telecom operators,
• Satellite operators,
• Service providers and resellers,
• Equipment suppliers,
• End users
MANDATE / OBJECTIVES
• Independent assessment of C-band
usage in three focus countries namely
India, Indonesia and Papua New
Guinea,
• Our study assesses the number and
characteristics of user antennas
operating in C-band, as well as the
economic impact and socio-economic
benefits which accrue from the services,
STUDY TEAM
• Project management
Pacôme Révillon, CEO
• Lead consultant
Stéphane Chenard, Associate Senior
Consultant
• Main other contributors:
Deepu Krishnan, Senior Consultant
Dimitri Buchs, Consultant
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
C-band assessment: background and methodology
(continued)
LIMITATIONS
Our analysis relies in part on public information which cannot always be corroborated,
as well as on interviews with third parties made independently of this study on the
condition that such parties not be identified, or made without their explicit consent to be
identified, or made subject to non-disclosure agreements. The report also examines
questions on which we find prior research or available statistics to be extremely limited
or non-existent; the specific uncertainties which result are detailed in the full report.
As such, Euroconsult disclaims liability for any harm which may result from use of the
report. However, we believe that the information at our disposal was sufficient to support
our analysis within our normal standards of accuracy and for the purpose of our
engagement.
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
The C-band market represents a very important of the satellite activity in Asia:
• Close to 60 satellites covered at least part of Asia with C-band capacity in
2012. Overall, satellite operators supplied a total capacity of more than 33
GHz in C-band in 2012 in Asia. This figure further discounts part of the C-
band capacity carried on satellite offering coverage of both Asia and other
world regions,
• Satellite capacity usage in C-band stood over 27 GHz in Asia in 2012,
corresponding to a fill rate of more than 80% of capacity supplied, and to
around 47% of the total satellite capacity used in the region,
• We estimate that the C-band capacity market stands at more than $800M in
Asia, under a conservative assumption of global average of
~$2,500/MHz/month for leased capacity. Capacity pricing can largely vary
depending on the application.
Overview and rationale for C-band usage
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
Overview and rationale for C-band usage
(continued)
A B C D E F G H J K L M N
P- Q
drier wetter ITU rain zones
mm/hour of rain in rainiest 1% of year 2 3 5 8 6 8 11 20 12 15 22 35 >65
*dB of margin for 99.9% availability at 12 GHz (satellite at 25° elevation, rain at 5 km altitude)
1 1 1 1 1 1 2 4 4 4 4 7 15 dB of margin for 99.9% availability*
TWO PHYSICAL
CHARACTERISTICS
WITH A HIGH VALUE FOR
USERS:
High quality transmission / low
sensitivity
to rain fade,
Availability of large beams, enabling
coverage of a large country/maritime
sector or of the full Asian region,
Two physical characteristics with a high value for users
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
The three focus countries
India ~1.2BN inhabitants /~245M households
~155M TV households ~40K C-band VSATs
Indonesia ~245M inhabitants /~65M homes
~45M TV households ~125K C-band VSATs
Papua New Guinea ~7M inhabitants
Limited penetration of TV sets, but large collective viewing ~1,000 C-band VSAT sites
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
C-band impact for the broadcast sector
0
500
1,000
1,500
2,000
2,500
2005 2007 2009 2011 2013
TV signals distributed by satellite in C-band in Asia Pacific
Standard definition
High definition
While the distribution of TV signals is still largely in SD, the number of HD signals in C-band reached close to
200 in 2013
Broadcasting sector as large and
fast growing sector in Asia. Cable
alone reaches ~350M homes.
Distribution of TV channels through C-
band satellite capacity has been a fast
growing market.
Reported usages include:
Transmission of TV channels to the
head-end of terrestrial networks,
and in particular cable networks, as
well as to ground stations of DTH
platforms,
Broadcast of TV channels direct-to-
home (or to hotels etc.) either for
free-to-air or pay-TV reception.
This furthermore does not include
occasional use and satellite news
gathering.
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
Content delivery to distribution platforms
(cable, DTH)
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C-band impact for the broadcast sector (continued)
~750k pay-TV subscribers 12-17M homes for FTA reception
Direct TV reception
by households 10 antennas
The entire television industry and viewership depends on C-band transmissions*
Indonesia
Papua New Guinea
India
*Figures only state for fully confirmed usage and considered as a minimum reach
Likely use (up to ~2M homes)
~3.5M viewers, i.e. 50% of total viewers
~500k dishes for direct reception
~20K cable homes
110-130M cable / DTH pay-TV homes
Digicable Network India, New Delhi
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
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Communication services over C-band: overview
Public safety and security networks (disaster management, police, military forces)
~165,000 C-band VSAT sites for the three focus countries
Rural connectivity (mobile base stations, village centres)
Banking / finance sector (ATMs, office connectivity,
stock brokering)
Industrial, utilities and other private businesses (oil&gaz, mining, power, retail)
Most sites have stringent requirements for reliable
and uninterrupted communications that only
C-band can provide
Other public services (education, health, administrations etc.)
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
C-band communication services themselves constitute a high-technology industry,
supported in the user countries by a local ecosystem of companies and highly qualified
personnel:
• In India and Indonesia, C-band capacity is provided in large part by one or more
national satellite operator(s), in addition to foreign operators,
• In each focus country, at least 10 to 20 specialized service providers manage the
C-band links and networks of end-users,
• In India and Indonesia, local companies manufacture
a significant fraction of C-band television antennas,
• Finally, significant numbers of distributors and installers
benefit directly from the deployment of C-band solutions.
An ecosystem of companies involved in C-band
operations
Indonesia: C-band antenna manufacturing facility of PT. Stella Satindo, 2014
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
Banking and financial sector as large C-band user
segment Indonesia:
~75,000 ATM sites for different banks, are estimated
to handle ~15M transactions per day, for a value
>$400m
~4K C-band VSATs connect ~20% of total banks'
branches to headquarters for clearing and back-
office purposes,
In April 2014, BRI bank procured its own satellite,
BRISat,
India:
Financial/banking uses nearly 50% of all C-band
VSAT sites,
Trading: ~8,000 C-band terminals support >80K
trading terminals, generating >8M financial
transactions per day,
Banks: ~10,000 sites including ~5K for ATMs, in
support of ~22M bank visits and ~365M ATM
transactions per year,
Papua New Guinea:
Banks use ~55 C-band VSATs in main cities to
connect microwave networks which then connect
ATMs, and for back-office purposes.
C-band VSATs as only option for expansion of ATMs
in rural areas,
ATMs and convenience store in Jakarta, May 2014
Mobile ATM – Indonesia
C-band is key for banking networks and the inclusion
of all population in the financing system.
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
C-band networks leverage by multiple other
industrial business segments including…
Cumulative identified sites
for the three countries
Oil and gas, mining
(>1,500 sites) Real-time relay of
sensors, Exploration,
Personnel welfare
Retail (>30,000 sites)
Including for ATM operations in convenience
stores. Start of digital
signage etc
Agriculture (>250 sites) Production
monitoring, staff welfare
Power companies
(>1,500 sites) Monitoring, control of
electric grid
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
Rural connectivity, involving cellular backhaul and
USOs Indonesia:
A key use of C-band satellite capacity in Indonesia is in support of the
backhaul needs of cellular carriers and for public telephony in remote areas.
Over 1,000 sites serve ~6-15M subscribers, for a market value of $224-
558M,
Another 5,700 terminals have been deployed to provide telephony in rural
areas through the government-sponsored Universal Service Obligation
(USO) program.
India:
~100 C-band terminals are deployed to provide connectivity to rural India,
including as part of two ISRO projects (Gramsat and the Village Resource
Centres - VRCs),
Telecom carriers also use a substantial amount of C-band capacity to
backhaul traffic from areas with limited connectivity, such as the Andaman
and Nicobar islands, Jammu and Kashmir and the Northeastern States,
using ~100-150 stations.
Papua New Guinea:
~80 BTSs connected through C-band connecting at least 80-400k
subscribers. This must represent most rural subscribers or ~5-10% of total
mobile subscribers,
Extension of networks in rural areas will most likely involve more C-band
sites,
In 2013 the government also took steps to establish a universal service fund
to promote rural communications.
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
Health: from support to administration to
telemedicine India
Rural population of close to 700M with
very limited access to healthcare
facilities,
~4k fixed and mobile satellite sites
bring medical skills to rural areas,
connecting patients to
hospitals/medical centers,
~150,000 patients treated per year,
Benefits also include cost savings for
patients,
Papua New Guinea
~10 VSATs installed at hospitals
for office requirements
larger projects are being
considered by Telikom PNG and by
private companies. The draft
National Broadband Policy sets the
goal of providing a broadband
connection to all hospitals by 2018.
Apollo Telemedicine Network Foundation, Gujarat, India
Malabar Cancer Care Society Kerala, India
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
Improving the education system
India
National policy to promote education in
both urban and rural areas,
~8,000 satellite sites operated by
public and private organizations,
Supporting training for an estimate of
~1M students per year,
Evaluations showed that digital
classrooms improve the students’
performance
Papua New Guinea
~50 C-band sites 10 VSATs installed at
hospitals for office requirements
National Broadband Policy currently
under development tentatively sets the
objective of providing Internet access
to 80% of rural schools (and all urban
schools) by 2018
India: VSATs showcased in Educomp Solutions' promotion of its education service, 2014
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
Public safety and security – police and military
India
Large C-band networks support important national security and public safety
services. In total the Indian Army, Navy and police are estimated to operate
~7,000 C-band terminals, either themselves or through service providers,
The Indian Navy operates its own satellite – GSat 7, launched in 2013 – with
three of its transponders operating in C-band. In early 2014 it was said to have
outfitted at least 30 ships with C-band antennas,
The Indian police operates POLNET, a C-band network with 961 terminals as
of 2012 (with 3.8m antennas). POLNET is dimensioned for up to 1,500
terminals, but was due in 2013-14 to be upgraded so terminals could
eventually be installed in all police stations – potentially over 15,000 locations,
Indonesia
The deployment of 200 military terminals has been reported,
35 van-mounted terminals acquired by Indonesian police to support forensic
investigations on crime scenes as part of the Indonesia Automatic Fingerprint
Identification System (INAFIS)
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
C-band usage is key for disaster management
networks
Indonesia: Expanded after the tsunami of 2004, the
Tsunami Early Warning System (InaTEWS - run by the
BKMG) connects over 700 sensors via 161 VSATs to a
monitoring center in Jakarta. The center analyses data and
can disseminate warning messages within 5 minutes of an
earthquake. BMKG operates ~400 other C-band VSATs as
part of its other meteorological and geophysical networks,
as well as 35 mobile terminals for emergency use.
India: ISRO operates the Disaster Management Support
Network (DMSN - 36 C-band sites as of 2012). At the time
the DMSN was ultimately dimensioned for up to 600
terminals. The Meteorological Department operates the 17-
site Real Time Seismic Monitoring Network, which provides
early warning of tsunamis. Plans to expand and modernize
the DMSN have been under discussion, and in 2011 were
allocated over $150m with the aim of establishing a more
coherent, nationwide network by 2017.
Papua New Guinea: One network includes five C-band
sites maintained by the Department of Meteorology and
Geophysics to monitor earthquakes and some of the
country's ~15 active volcanoes. The National Disaster
Centre separately maintains a larger network with 60 C-
band sites;
Remote terminal connecting a tide gauge in Sadeng, E. Java
Rooftop of main operational center, Jakarta
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
A range of other public services supported by C-
band VSATs
Air navigation and safety: Airports and air traffic control centers in all three
countries are interconnected by C-band networks. These, in particular, are
critical to large investments made by India in new navigation satellites, and by
Papua New Guinea to permit airlines to transit its air space more efficiently;
e-Government: Indonesian citizens depend on a C-band government network of
6,000 sites operating in C-band to obtain and renew their new biometric identity
documents; so do civil servants in Papua New Guinea to receive their salaries in
rural areas; In PNG, a network of 260 sites is also installed for the Local Level
Governments (LLG) which manage each district;
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
Takeaways
• In both India, Indonesia and Papua New Guinea, we find that C-band is extensively
used for communication networks, often of critical importance to these
countries' economy, society or security, across a great variety of applications, for
both private companies and government organizations, and in both rural areas and
city centers;
• Most of these networks rely on C-band because of stringent requirements for
reliable and uninterrupted communications, which could not be met using higher
frequency bands with greater susceptibility to rain fade. Users are often ready to pay
for more expensive antennas and potentially higher priced capacity to benefit from
the advantages of the C-band;
• The governments of India, Indonesia and Papua New Guinea all have invested in
various C-band networks to optimize the efficiency of their operations and to support
key development and security policies. In total, we identify approximately 19,500
VSATs already installed as part of these networks, along with a number of additional
development projects;
• The availability of C-band satellite links is of clear, direct and often considerable
importance to a variety of economic sectors, in all three focus countries, including
for the broadcasting sector, the financial sector, for a variety of other large industry
sectors such as the oil and gaz and mining industries, for retail chains as well as
critical infrastructure such as the power grid;
• Even if alternatives were available, replacing millions of TVRO and hundreds of
thousands of VSATs would just not be feasible. The replacement cost would stand in
$ billions, and the process would take several years, during which vital services
would be disrupted.
CASBAA Satellite Industry Forum 2014 – Assessment of C-band Usage in Asian Countries
THANK YOU!
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Pacome Revillon CEO [email protected] Tel: +33 1 49 23 75 30