Broadband & the EU Economic Recovery Plan. The Role of Satellite in Increasing Coverage
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1 Broadband & the EU Economic Recovery Plan The Role of Satellite in Increasing Coverage Stefano Agnelli Head of Business Development for Value-Added Services Eutelsat Coordinator of Space Policy European Satellite Operators Association (ESOA) 1
2 What is ESOA? The European Satellite Operators Association, based in Brussels Represents interests of all European satellite operators 10 full members 9 supporting members (Arianespace, Avanti Communications, EADS Astrium Satellite, ISB, ManSat, Newtec, Solaris Mobile, Thales Alenia Space, Willis) Mission: To work with key [European] organisations including the European Commission, Parliament, Council, the European Space Agency and other relevant international organisations to create the political, industrial and regulatory environments necessary to deliver vital communications services to citizens across the globe 2
3 Better High-speed Internet Access needed to revitalise Europe's Rural Regions, says Commission in other regions [ ] only a quarter of farmers use the internet, making it harder to plan production, market products and access prices in international markets, check weather forecasts or establish cooperation agreements with other market players. Farmers are not the only ones missing out: across Europe, only 22.5% of people in rural areas use e-government services like lodging tax returns, compared to 32.9% in urban areas. IP/09/343 - Brussels, 3 March
4 The Household Broadband Market DSLAM OVER-SERVED MARKET OVER-SERVED MARKET DSLAM Areas within 3 km of next DSLAM, or with FTTH, near cable head-end Usually urban areas with a high population density Several competing providers of broadband access Service up to 20 Mbps, triple play UN-SERVED MARKET UN-SERVED MARKET Areas located further than 5 km from next DSLAM or cable head-end, meaning no terrestrial broadband is available In Europe, unserved areas usually have a low population density UNDERSERVED MARKET UNDERSERVED MARKET Areas within approx. 3-5 km of a DSLAM. Broadband is available at a limited max. speed, up to few Mbps not allowing all kind of services (TV, VoD) Usually only one, sometimes two competing providers Same price as in over-served areas 4
5 The White Spots in Europe Underserved areas percentage of the population without broadband coverage (1) 0% 1% 2% n.a. n.a. 4% 5%-9% 10%-20% < 20% (1) Data source: IDATE Study Broadband Coverage in Europe
6 Rural Broadband coverage in Europe Rural broadband coverage of population in percent (1) >91% 61-90% 31%-60% < 30% (1) Data source: IDATE Study Broadband Coverage in Europe
7 Satellite Broadband is the Rural Solution Other technologies cost increases significantly at low population densities, as well as in areas of difficult access due to geography Satellite services cost is flat onto the entire EU territory - as such, they are particularly suitable for these areas Source: of_europe.shtml#density_population 7
8 Setting the Target for 100% Coverage Satellites - The Invisible Infrastructure Already in Place Satellite signals already shine down onto the entire EU territory today No new substantial infrastructure is needed to enable connectivity in the EU A million extra businesses or households in rural areas can connect to broadband via satellite by the end of
9 ESOA Proposition A million extra businesses or households in rural areas can connect to broadband via satellite by the end of 2010 that too, using only half on the EU s broadband package allocation No New Substantial Infrastructure An Enabler Rapid to Deploy Sustainable Solution A Real Economical Stimulus Economic Growth Immediate and sustainable boost to the competitiveness of rural businesses leading to a permanent transformation of rural areas 9
10 Satellite Broadband: a Sustainable Solution Examples of Satellite Offerings Across Europe Offer Service Provider X Equipment Cost: Offer Service Provider Y Equipment Cost: 399 Offer Service Provider Z Equipment Cost: 615 Downlink (kbps) Uplink (kbps) Volume (GB) 1.8 (Down +Up) 3.0 (Down +Up) 5.0 (Down +Up) 9.0 (Down +Up) /m Downlink (kbps) Uplink (kbps) Volume (GB) Progressive bit-rate decrease starting from 0.8 GB Down, 0.15 GB Up from 1.4 GB Down, 0.25 GB Up from 2.24 GB Down, 0.4 GB Up /m Downlink (kbps) Uplink (kbps) Volume (GB) 5.0 (Down + Up) 10.0 (Down + Up) 15.0 (Down + Up) 20.0 (Down + Up) /m
11 Public Support for Satellite Broadband Basic Infrastructure in place for Immediate Connectivity Access to Connectivity requires Ground Equipment (antenna & modem) Ground Equipment requires Installation Satellite Included in National Plans for BB development Ground Equipment & Installation Eligible for Funding Public Support in terms of bulk purchases with distribution to eligible users, or incentive schemes for eligible users Installation requires Local Labour Public Funding turn into Opportunities and Employment for local SMEs 11
12 Example of Customer Premises Equipment Complete range of ODUs 67 cm Ka-band 96 cm Ku-band Automated installation tools for simplified antenna alignment and commissioning Compact IDU Simple customer interfaces: Plug and play Ethernet 10/100 Mbps Contains all software needed to access the satellite Upgradeable via over-the-air software download 12
13 Case Study I Broadband for the Piemonte Region Piemonte 1206 municipalities Population: 4,166,442 Area (sq km): 25,399 Mountain: 43.3% Hill: 30.3% Flat land: 26.4% Public bid for bidirectional satellite service + supply, installation, maintenance / assistance of 200 terminals Giving Local Administrations in rural and mountain areas access to broadband Internet and to the applications of the Regional Administration Service extended to public mountain huts in at the end of 2006 ( , consultation of the weather forecasts, webcam, etc.) Advantages: promotion for tourism, backup in case the traditional system of communication has a failure, managing emergency interventions 13
14 Case Study II Broadband for Rural Scotland The Scottish Government identified 4000 homes and businesses beyond the reach of terrestrial broadband. Avanti won the tender to supply satellite broadband services ranging from 512kbps to 3Mbps to end users. Equipment and installation costs were fully subsidised by the Scottish Government. A business and domestic user, in Perth, commented "We can't believe the speed of our broadband service compared to our previous dial up connection. Using the internet has now become a pleasure rather than a chore 14
15 Case Study III Connecting Schools in Cyprus In Pafos, Cyprus, 6 schools develop human capital in the region by connecting via satellite to broadband Broadband connectivity of rural areas generates local training and fosters education and employment of both students and teachers Based on the success of this project, the Cypriot Minister of Communication & Works announced on 24th March 2009 the connection of all the schools in the 152 villages in Cyprus to broadband via satellite 15
16 Case Study IV Broadband for Farmers in France Euralis represents farmers, of whom have farms located beyond the range of broadband terrestrial networks Euralis took satellite connectivity as a solution to connect these members Broadband access is vital for the agricultural profession today Farmers conduct multiple administrative formalities via Internet They can also consult the latest prices for cereals and raw materials while online and access Eureca, the Euralis Group s extranet One farmer, connected since last autumn "The follow-up of my parcels has improved. Thanks to Eureca, I know exactly what I have been doing on a given parcel, and when I have done it. Surely, before that, we would do the traceability via paperwork, but this was laborious, and then, it was not necessarily done very seriously, while this is compulsory!" Furthermore, he can now surf on the Internet and use the online services, such as the professional weather forecasts, the consultation of bank accounts, and the follow-up of his invoicing and deliveries. To sum it up, it is really a plus! 16
17 Case Study V SME Partnership for Development In 2004, Deliflor, a Dutch chrysanthemum grower, identified an Ethiopian company with which to partner to grow flowers The company relied on data shared across its IT data network between Ethiopia & Deliflor s HQ in The Netherlands No Internet access was available at the site s remote location, but satellite communications allowed the partnership to work Initial local employment in Africa for 200 people Mutual commercial benefits both for European SME & African locals Marc Driessen, General Manager "Without the satellite communications link, Deliflor would not have been able to pursue an international partnership. The company has grown now to employ 900 people, the majority of which are locals. Its certainly been a win-win partnership for both sides." 17
18 Satellite Solutions are here NOW! I m waiting for broadband I ll bring it to you for Christmas What year? Satellites can help TODAY EERP 18
19 Stefano Agnelli Head of Business Development for Value-Added Services Eutelsat Coordinator of Space Policy European Satellite Operators Association (ESOA)
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