the requirements for the installation.

This point will state what needs to be ready at the site location (and why) to ensure a successful installation. This is the VSAT engineer's check-list. what is the current condition at the site. This point will state the present situation, such as power measurements (is clean and stable power provided?), condition of the computer/server room (is air condition installed?) etc. the civil works (customer responsibility). This point states what needs to be prepared by the customer before the actual VSAT installation can take place. This is the customer's check-list of tasks to be completed. The sections should be supported by photographs, drawings / sketches and detailed descriptions in order to avoid misunderstandings.>. Photographs should be marked with the direction in which the photograph was taken or viewed from. Especially photographs or drawings / sketches of the actual antenna location should include an aerial plan with details such as direction (an accurate indication of North), elevation and exact position (distance between the recommended location of the antenna mount and the surrounding fixed points (e.g. to the edge of the roof/garden, roads, landmarks, buildings, trees>.

CONCEPTS OF SATELLITE COMMUNICATION Long distance communication through conventional coaxial or microwave radio relay link involves large number of repeaters. Obviously, as the number of repeaters increases thereliability is degraded. Also the cost of the systems goes up.If two stations A & B, located long distance apart, are linked by coaxial system then thesignals are attenuated as they travel along cable. So the signal must be amplified &equalized at a number of repeaters in between. The repeater spacing depends upon numbersof circuit to be provided and the type of cable used. Typically repeaters are required at 9Km for 4 MHz & 1.5 Km for 60MHz system. If linked by microwave system the signal istransmitted as a link of sight beam. Intermediate repeaters are needed to compensate forfree space loss & delay equalization. The repeaters spacing are mainly limited by clearancefor line of sight.Microwave link require fewer repeaters than coaxial system. Typical spacing is 30 to 50Km for microwave links.If the antenna height of the repeaters could be increase to have more clearance for linesight, the numbers of microwave repeaters because as the number of repeaters increase itresults into Poor system performance. Low reliability High costLarge area for communication would be covered if the height of the microwave repeatercould be increased sufficiently and virtually by putting it about on artificial earth satellitein the space.By using Satellite all this drawbacks can be removed. Satellite coves about 1/3 part of earth surface. So the signals can be transmitted at a vide area of the earth. Working of Satellite communication: A satellite communication system has number of earth stations. At transmitting stationsthe base band or other incoming signal is then beamed up to the satellite repeater through atransmit antenna.The uplink RF signals is transmitted to the satellite through a high power amplifier, thetransmitted signal is received by the earth station at a RF, which is different from formerto avoid interference between the amplified uplink signal and the downlink to the groundcoverage area.The process of down converting in the satellite is performed by a number of units called transponders.In a similar way the signals transmitted by the earth stations B to earth station A. This ishow earth stations A & B communicate simultaneously with each other. In fact, signalstransmitted by the earth station are broadcast by the satellite to its area of coverage & not just directed to other with which to communicate. The microwave signal returned fromsatellite are so weak that the special equipment, called LOW NOISE AMPLIFIER isnecessary to boost up the information which keeping the unwanted noise to be minimum.The signals are then sent to the received equipment, which recovers the base band, thesignal is then sent through the terrestrial link to its destination. Thus a communicationsatellite is essential a microwave repeater. It receives the energy, beamed up at it by thehighly directive antennas at the earth stations, shifts it by a couple of GHz & returns it tothe earth in broadcast mode to cover a large area on the earth. A brief history of space communication The idea of radio transmission through space was first conceived in 1911. In 1945 Britishauthorscientist Arthur C Clarke suggested the use of a geosynchronous earth satellite forthe purpose. His assumption of a manned space station was later revised by a US engineer,J R Pierce, in April 1955, who was also the first one to analyze unmanned communicationsatellites. This idea later led to the

great success of satellite communications.The first artificial satellite "SPUTNIK I" was launched by the erstwhile USSR, in 1957.This began a series of space initiatives by USA and USSR.The first satellite communication experiment was the US government's project SCORE(Signal Communication by Orbiting Relay Equipment), which launched a satellite onDecember 18, 1958. This satellite circled the earth in an elliptical orbit and retransmittedmessages recorded on a magnetic tape. It lasted for about 13 days after which the batteriesran out!!The US Army Signal Corp's Courier IB, launched in October 1960, lasted for about 17days. It could handle typewriter data and voice and facsimile messages.It was a balloon, Echo 1, launched in August 1960, which led American Telephone &Telegraph Company (AT&T) to build Telstar. Communication tests carried out byreflecting radio signals from Echo 1's surface were completely successful.Telstar, launched on July 1962 was the first active satellite with a microwave receiver andtransmitter to transmit live television and telephone conversations across the Atlantic. Itwas turned off in February 1963. Successive initiatives include NASA's Relay 1 satellitewas launched in elliptical orbit in December 1962 and Syncom 2, the first synchronouscommunication satellite was launched in July 1963.In 1964 a global initiative was undertaken leading to the formation of INTELSAT, whichhas been one of the major driving forces for the large scale commercial exploitation of satellite technology for communications. Since then there has been no looking back. What is a VSAT? The term Very Small Aperture Terminal (VSAT) refers to a small fixed earth station.VSATs provide the vital communication link required to set up a satellite basedcommunication network. VSATs can support any communication requirement be it voice,data, or video conferencing.The VSAT comprises of two modules - an outdoor unit and an indoor unit. The outdoorunit consists of an Antenna and Radio Frequency Transceiver. (RFT). The antenna size istypically 1.8 metre or 2.4 metre in diameter, although smaller antennas are also in use. Theindoor unit functions as a modem and also interfaces with the end user equipment likestand alone PCs, LANs, Telephones or an EPABX.VSATs can typically be divided into two parts- an outdoor unit and an indoor unit. Theoutdoor unit is generally ground or even wall mounted and the indoor unit which is the sizeof a desktop computer is normally located near existing computer equipment in your office. GROUND STATIONS (basic equipments required for vsat earthstation for communication purpose) GROUND SEGMENTS In comparison to terrestrial link repeater, satellite is situated at very far distance ,therefore earth stations need to have highertransmit side & more sensitive, low noiseamplifier on the receive side.Information signals is received from the trunk exchange of customer premises throughterrestrial link and signal are multiplexed & amplified in a base band amplifier. Base bandsignals modulate a carrier at an intermediated frequency. Modulated output is up convertedto radio frequency. RF signal is amplified in a high power amplifier (HPA).Sensitivity of an earth station is defined in terms of ratio of the receive antenna gain tothe noise temperature of the receive chain or G/T, known as figure of merit of the earthstation. For small domestic earth station, signals received by antenna are amplified by lownoise amplifier (LNA). Amplified signals are demodulated to recover the informationsignal. 1.ANTENNAS An antenna is a transducer designed to transmit or receive electromagnetic waves. Inother words, antennas convert electromagnetic waves into electrical currents and viceversa. Antennas are used in systems

such as radio and television broadcasting, point-to-point radio communication, wireless LAN, radar, and space exploration .Most essential thing for the earth station is to have antenna of proper size, becausewithout the antenna it is not possible to catch the signal coming from the satellite. Fordomestic thin route communications using SCPC antenna dia of 3-4.5m.The cassegrain antenna is most often used for dishes that exceed five meters in diameter.Its use is primarily restricted to uplink earth stations and cable TV head ends.For multi channel FDMA or TDMA, DAMA ,ONGC URAN uses a 11m diameter Antennafor automatic or step tracking. For medium size and small antennas (7 m and below)manual tracking is usually adequate. Classification of Earth StationE/S Type Antenna Dia. (m)A 11B 7.5C 4.5A standard antenna works by concentrating signals, which are picked up along its axis,to a single point. This point is called the focal point. The receiving amplifier is usuallyplaced near the focal point and the concentrated signals are collected into the receiver usinga small horn. This serves to further concentrate the signals to get the maximum possiblesignal level at the amplifier input.The focal point can be offset from the main axis so that the receiving equipment does notobstruct the beam in any way. This offset has the effect of raising the beam of the antenna.The exact amount that the beam is raised is equal to the amount of offset. Thus, if the offsetis 20 degrees then the beam is raised by 20 degrees.Antenna shapes and sizes vary but they all do the same thing, every antenna dish you seeincluding radio telescopes, which are basically receive only antennas, all perform thisfunction. they all focus the signals they receive from a specific point oin space onto a smallarea where they can be received and amplified.The principle works in exactly the same way for transmitting a signal. The transmitamplifier produces a large signal to a horn set at the focal point. The signal is then radiatedonto the dish which in turn focuses the signal into a parallel beam of energy out into spaceto the satellite. 7. ECHO-CANCELLER: The term echo cancellation is used in telephony to describe the process of removing echofrom a voice communication in order to improve voice quality on a telephone call. Inaddition to improving subjective quality, this process increases the capacity achievedthrough silence suppression by preventing echo from traveling across a network.Two sources of echo have primary relevance in telephony: acoustic echo and hybrid echo .Speech compression techniques and digital processing delay often make these echoes moresevere in telephone networks.Echo cancellation involves first recognizing the originally transmitted signal that re-appears, with some delay, in the transmitted or received signal. Once the echo isrecognized, it can be removed by 'subtracting' it from the transmitted or received signal.This technique is generally implemented using a digital signal processor (DSP), but canalso be implemented in software. Echo cancellation is done using either echo suppressorsor echo cancellers, or in some cases both. 8. POWER SYSTEM: For reliability no break power plant at an earth station is essential. Generally, AC powerfrom commercially main is rectified through a charger & feed storage batteries on float.The batteries drive an inverter (3 phase for large station), which delivers A.C power supplyfails. Standby engine alternators are installed to meet contingency in case of power failures. BLOCK DIAGRAM OF SATELLITE EARTH STATION EQUIPMENTS TO BE INSTAL

Outdoor Unit The antenna system comprises of a reflector, feedhorn and a mount. The size of a VSATantenna varies from 1.8 metres to 3.8 metres. The feedhorn is mounted on the antennaframe at its focal point by support arms. The FEED HORN directs the transmitted powertowards the antenna dish or collects the received power from it. It consists of an array of microwave passive components. Antenna size is used to describe the ability of the antennato amplify the signal strength.The RFT is mounted on the antenna frame and is interconnected to the feed horn. Alsotermed as outdoor electronics, RFT, in turn, consists of different subsystems.These include low noise Amplifiers (LNA) and down converters for amplification anddown conversion of the received signal respectively. LNAs are designed to minimise thenoise added to the signal during this first stage of the converter as the noise performance of this stage determines the overall noise performance of the converter unit. The noisetemperature is the parameter used to describe the performance of a LNAUpconverters and High Powered Amplifiers (HPA) are also part of the RFT and are usedfor upconverting and amplifying the signal before transmitting to the feedhorn. TheUp/Down converters convert frequencies between intermediate frequency (Usually IF level70 MHz) and radio frequency. For Extended C band, the downconverter receives the signalat 4.500 to 4.800 GHz and the upconverter converts it to 6.725 to 7.025 GHz. The HPAratings for VSATs range between 1 to 40 wattsInterlink FacilityThe outdoor unit is connected through a low loss coaxial cable to the indoor unit. Thetypical limit of an IFL cable is about 300 feet. Indoor Unit The IDU consists of modulators which superimpose the user traffic signal on a carriersignal. This is then sent to the RFT for upconversion, amplification and transmission. Italso consists of demodulators which receive the signal from the RFT in the IF range anddemodulates the same to segregate the user traffic signal from the carrier. The IDU alsodetermines the access schemes under which the VSAT would operate. The IDU alsointerfaces with various end user equipment, ranging from stand alone computers, LAN's,routers, multiplexes, telephone instruments, EPABX as per the requirement. It performs thenecessary protocol conversion on the input data from the customer end equipment prior tomodulation and transmission to the RFT. An IDU is specified by the access technique,protocols handled and number of interface ports supported. VSAT System Architecture A VSAT system consists of a satellite transponder, central hub or a master earth station,and remote VSATs. The VSAT terminal has the capability to receive as well as transmitsignals via the satellite to other VSATs in the network. Depending on the accesstechnology used the signals are either sent via satellite to a central hub, which is also amonitoring centre, or the signals are sent directly to VSATs with the hub being used formonitoring and control. Topologies The network of VSATs at different locations adopts different topologies depending on theend applications traffic flow requirements. These topologies could be Star or Mesh.The most popular of these is Star topology. Here we have a big, central earthstation knownas the hub. Generally the hub antenna is in the range of 6-11metre in diameter. This hubstation controls, monitors and communicates with a large number of dispersed VSATs.Since all VSATs communicate with the central hub station only, this network is moresuitable for centralized data applications. Large organizations, like banks, with centralizeddata processing requirements is a case in point.In a mesh topology a group of VSATs communicate directly with any other VSAT in thenetwork without going through a central hub. A hub station in a mesh network performsonly the monitoring and control functions. These networks are more suitable for telephonyapplications. These have also been

adopted to deploy point to point high speed links.However, in actual practice a number of requirements are catered to by a hybrid network topology. Under hybrid networks a part of the network operates on a star topology whilesome sites operate on a mesh topology. VSAT Access Technologies Time Division Multiple Access(TDMA) In a TDMA system, input digital signal bit stream is stored in a buffer memory & istransmitted at higher bit rate on a short duration carrier burst from earth station. Earthstation sends the burst in an assigned time slot. A reference station sends a reference burstrelative to which all traffic station adjusts their burst in their assigned slot so as to avoidoverlap with bursts of other stations. Earth carrier burst follows a prescribed formatconsisting of a preamble & information signals. Preamble contains few bits for carrier & bittiming recovery, a unique word for reference, station identification code, control signals,teletype & order wire signals.TDMA system requires sophisticated synchronization technique. PCM-PSK-TDMA withquadric- phase modulation results in efficient utilization of satellite power and bandwidth.Using digital interpolation speech technique (DSI) the available channel capacity can bedoubled. Apart from increase in the canal capacity, with use of demand assignment TDMAoffers considered flexibility to make change in traffic requirement with use of demandassignment.Illustration of TDMA with three earth station. Transmitting earth stations must time thereburst transmitting so that they arrive at the satellite in the correct sequence. This signaltransmitted by the satellite is a continuous sequence of burst separated by short guardtimes. Frequency Division Multiple Access Sharing Bandwidth (FDMA)Using the analogy above, FDMA is simply having all the students talking together but onlylistening to one teacher.In the same way, the teacher has to tune in to one student and filter out the rest. This isperhaps simple to understand since radio and tv has traditionally used this principle, albeitone way from transmitter to receiver.In FDMA separate frequency are used for transmission of each carrier from any satellite.FDM-FM-FDMA is the conventional & most commonly used method for satellitecommunication. However for multi-carrier operation of satellite transponder, due to no linearity of the output traveling wave tube amplifier (TWTA), they have to be operatedbellow its saturation level in order to keep inter modulation products with in limits. Thisresults in inefficient use of satellite power. Therefore TDMA are preferred when eachstation transmits bursts of short duration in a time sequential order permitting where stationbursts of short duration in a time sequential order permitting use of full satellite power.In the shown fig Ch 1, 2, 3, 4, 5 are signals transmitted at different frequency in theavailable Bandwidth. Sharing Bandwidth & Time (FTDMA) Now if the students take turns to talk to the teacher then the teacher can talk to everystudent. The teacher can choose which student can talk and when they can talk. Sounds likea dream situation for some teachers.M-FTDMA is the same system, each student has a frequency or groups of students have afrequency and the teacher has a frequency. The result is an extremely efficient accessscheme for many VSAT users to communicate with the network via satellite.There are further two types of FDMA:1.Pre assigned multiple accesses. (PAMA).2.Demand assigned multiple accesses (DAMA). Pre assigned multiple accesses. (PAMA):

I Pre assigned multiple accesses the frequency allotted is fixed. Suppose we want tocall any place, then the frequency of call signal is fixed. This results in less number of calls. Pre assigned multiple accesses is used to send the data or other any signal. Demand assigned multiple accesses (DAMA): In Demand assigned multiple accesses frequency allotted is controlled by MasterSignaling Channel Unit (MSCU). Suppose if we want to call any place then a request issend to MSCU. MSCU allots frequency the frequency which is free. Then the call isestablish between that two places by using allotted frequency. Once the call is complete isover, then the frequency is left free so that it can be used again by other caller. So nowthere can be many numbers of connections as compared in PAMA. The satellite earthstation where there is MSCU is called as masters station or HUB station.DEMERITS OF FDMA1 . S u s c e p t i b l e t o j a m m i n g 2.Inefficient utilization of satellite power and bandwidth3.Uplink power co ordination is required4.Frequency Co-ordination is required. Code Division Multiple Access(CDMA) For radio systems there are two resources, frequency and time. Division by frequency, sothat each pair of communicators is allocated part of the spectrum for all of the time, resultsin Frequency Division Multiple Access (FDMA). Division by time, so that each pair of communicators is allocated all (or at least a large part) of the spectrum for part of the timeresults in Time Division Multiple Access (TDMA). In Code Division Multiple Access(CDMA), every communicator will be allocated the entire spectrum all of the time. CDMAuses codes to identify connections.CDMA uses unique spreading codes to spread the baseband data before transmission. Thesignal is transmitted in a channel, which is below noise level. The receiver then uses acorrelator to despread the wanted signal, which is passed through a narrow bandpass filter.Unwanted signals will not be despread and will not pass through the filter.Codes take the form of a carefully designed one/zero sequence produced at a much higherrate than that of the baseband data. The rate of a spreading code is referred to as chip raterather than bit rate. CODES CDMA codes are not required to provide call security, but create a uniqueness to enablecall identification. Codes should not correlate to other codes or time shifted version of itself. Spreading codes are noise like pseudo-random codes, channel codes are designed formaximum separation from each other and cell identification codes are balanced not tocorrelate to other codes of itself. THE SPREADING PROCESS WCDMA uses Direct Sequence spreading, where spreading process is done by directlycombining the baseband information to high chip rate binary code. The Spreading Factor isthe ratio of the chips (UMTS = 3.84Mchips/s) to baseband information rate. Spreadingfactors vary from 4 to 512 in FDD UMTS. Spreading process gain can in expressed in dBs(Spreading factor 128 = 21dB gain). POWER CONTROL CDMA is interference limited multiple access system. Because all users transmit on thesame frequency, internal interference generated by the system is the most significant factorin determining system capacity and call quality.The transmit power for each user must be reduced to limit interference, however, the powershould be enough to maintain the required Eb/No (signal to noise ratio) for a satisfactorycall quality. Maximum capacity is achieved when Eb/No of every user is at the minimumlevel needed for the acceptable channel performance. TECHNOLOGY SIMPLIFIED SCPC (DAMA/PAMA)

Possessiveness is a basic human instinct. One really doesnt like to share resources. Youwant your own PC. You want a dedicated LAN connection. You want your own homepage. You want your own telephone. Well the list is long. But this is in direct contradictionto the fact that Networking was born and has evolved on the philosophy of resourcesharing, first across premises and eventually across geographies.So we are going to talk about two things a) Dedicated resources in a shared environment andb) Shared resources in a dedicated environment.This means that if you dont want to travel in a bus you can buy a car (its your dedicatedresource), but you cannot buy the road (its a shared resource).Lets come to the point directly. We are talking about Satellite Communication. Todaythere is a plethora of products and technologies available in the market place. It is indeed aformidable task to select the appropriate technology. The even more difficult task is toselect the appropriate product. This documents aims to demystify the concepts involvedwith an established technology the Single Channel Per Carrier or SCPC technology.The service provider providing SCPC connectivity services has a deep resemblance to aCourier company. After all it is also a service provider. We ask the service provider muchthe same questions as we do while selecting a Courier company. Now since we all arefamiliar with Courier business, lets take a close look how the business operates, how thecustomers interests are taken care of and what are the trade-off involved.SCPC provides clear channel communication. To understand this lets the situation whereyou have to send large equipment. Now then there are two ways to send it. You either sendit as a single piece or you disassemble it into small parts and then send it. In the later optionyou have to first disassemble the equipment, send adequate information with eachcomponent to that it can be re-assembled in the proper order. Now if one of the componentsdoes not arrive in time then the whole consignment waits till it arrives. The former caserepresents clear channel communication and the later represents packetised data/voicetransmission. The Courier Company picks up the goods from your premises and delivers to you premisesin another location and thus it provides end-to-end delivery. Similarly SCPC provides end-to-end data, voice and video connectivity. Its just not sufficient to deliver the information,it should be delivered at the earliest. Now there are two ways to it. If you observe thegeographic distribution of your organization, you can surely identify locations betweenwhich you transfer goods very frequently. So the Courier Company can reserve a definitespace in their flights to carry your goods everyday. If your goods volume is very large thenyou can ask the Courier Company to reserve a flight for you.Of there is a cost attached to it. At the same time once the flight is dedicated to you, anytype of goods can be sent through. However if you dont load the flight fully, then you areat loss as the cost of operating the flight still remains the same. But there is a way tooptimize or distribute the cost. Use the flight to cove all your locations sequentially, takinga pair at a time.In parlance of SCPC connectivity, the flight illustrates the concept of a frequency carrier.Thus the frequency carrier can either be permanently assigned between two VSATs givingway to Permanently Assigned Multiple Access (PAMA). Thus a permanently assignedfrequency channel provides dedicated bandwidth, through which you can send data, voiceor video. This illustrates the concept of Dedicated Resource in Shared Environment. Herethe frequency channel is dedicated to you but the basic Satellite resource is shared bymany.Now the assigned frequency carrier in PAMA can either be used for voice or for data.But what if you want to use one carrier for data and voice. Of course this is possible. However it calls for the use of a call of device called Voice Data Multiplexer (VDM) whichcombines or aggregates several data and voice channels into one trunk line which in turn isinterfaced to the VSAT equipment. The VDM is chosen primarily keeping in mind thenumber of voice channels required. A typical VDM configuration comprises of one LANinterface and multiple voice interface.Alternately the frequency carrier can be assigned between any two VSATs on a demandbasis giving way to Demand Assigned

Multiple Access (DAMA). Thus several VSATsshare a floating link. Now as the number of VSAT grows, one floating channel becomesinsufficient. Thus a pool of floating is assigned for the group of VSATs. It should be notedthat in DAMA after the link is established it becomes equivalent in every respect toPAMA. Thus DAMA involves a call establishment cycle which is not there in PAMA.The link establishment in DAMA is quite similar to making a long distance telephonecall. If your phone has STD facility then you just dial the destination number and getconnected. In the absence of the ISD felicity you request the telephone operator to dial thedestination number and connect you through. But once you are connected the operator doesnot come in picture. Thus in DAMA call setup procedure the end equipment first datatransmission request to the VSAT. The VSAT then sends another request to the Network Control Center (NCS). The NCS then sends another request to the destination VSAT toconfirm if it is busy. If it is not busy then it allocates a pair of frequency to the two VSATs.Thus the clear channel circuit is established end-to-end. Thus the NCS is only involves incall establishment.A logical question that arises here is what should be the capacity of the satellite channelestablished between two locations.Going back to the courier analogy, if you notice there are weight slabs fixed by thecourier company e.g. 0 to 1Kg, 1 to 5 Kg, 5 to 20 kg, 20 to 50kg and so on. This impliesthat whether you want to send a 1.5 kg object or a 4.9 Kg object, the charges are the same.Of course you would like the range to be narrower. Similarly in the case of SCPC thecapacity of the Satellite channel cannot be arbitrary. The commonly available steps are 4.8Kbps, 9.6 Kbps. 16 Kbps, 19.2 Kbps, 32 Kbps, 64 Kbps and 128 Kbps. Thus depending ontraffic requirement appropriate channel size is allocated. A network can have a mix of both PAMA and DAMA Links. Generally PAMA ispreferred for data and DAMA for voice. Also there can be multiple DAMA and PAMAfrom the same location. Finally the DAMA link can be easily transformed into a PAMAlink. This does not call for any hardware chance. This can be seamlessly carried out fromthe Network Control System (NCS).Now an obvious question is what determines how many frequency channels or carrierscan be established from one location. Well there are two things in this. One is the ChannelUnit and the other is the RF Unit. The Channel Unit is the satellite modem (the counterpartof the familiar Landline modem). Every frequency carrier PAMA or DAMA requires aChannel Unit. These Channel Units are housed in a modular chassis having multiple slots.So it is obvious that if you are using a four slot chassis, you can have up to four carriers.Now the RF Unit, which is collocated with the antenna, actually transmits four frequencycarriers. Now there is certain amount of power associated with each carrier depending onits bandwidth i.e. the RF unit has to radiate more power to transmit a 64 Kbps carrier that a19.2 Kbps carrier. Thus every RF unit has a definite power rating and that has to beconsidered while determining the number of carriers supported. Normally RF units areavailable with power ratings of 2W, 5W, 10W and 20W. For example a 5W RF unit cansupport either two 64 Kbps Carriers or seven 19.2 Kbps Carriers or fourteen 9.6 KbpsCarriers. Thus if you need three voice channels (@ 16 Kbps per channel) and two 19.2Kbps and one 64 Kbps data channel then you will require a 10W RF unit. Space segment : Space Segment is available from organisations which have procured satellites, arrangedlaunches and conducted preliminary tests in-orbit and who then operate these satellites oncommercial basis. Transponders : Contained in the satellite body are a number of transponders, or repeaters.These transponders perform the following functions :Signal Reception - it receives the signal uplinked by a VSAT and/or hubFrequency Translation - the frequency of the received signal is translated to a differentfrequency, known as the downlink frequency.The frequency translation ensures that there is no positive feedback and also avoidinterference related issues.Amplification - the transponder also amplifies the downlink

signal.The number of transponders determines the capacity of a satellite. The INSAT series of satellites have typically 12 / 18 transponders in various frequency bands. Each transpondertypically has a bandwidth of 40 Mhz. The various frequency bands are as below Frequency Band Uplink (GHz) Earth Station to Satellite Downlink (GHz)Satellite to Earth StationC Band 5.925 to 6.425 3.700 to 4.200Extended C Band 6.725 to 7.025 4.500 to 4.800Ku Band 14.000 to 14.500 10.950 to 11.700 Internationally Ku-Band is a popular frequency band in use. The Ku- Band by virtue of itshigher frequency can support traffic with smaller antenna sizes in comparison to C / Ext-CBand. It is , however, susceptible to rain outages making it unsuitable for use in South EastAsian regions. Indian service providers are presently allowed to hire space segment only onthe INSAT series and operate in Ext-C band only. Ext-C band is available only on theINSAT series of satellites and is not a standard band available internationally. Link Budgets :Ascertains that the RF equipment would cater to the requirements of the network topologyand satellite modems in use. The link Budget estimates the ground station and satelliteEIRP required. Equivalent isotropically radiated power (EIRP) is the power transmittedfrom a transmitting object. Satellite ERP can be defined as the sum of output power fromthe satellites amplifier, satellite antenna gain and losses.Calculations of signal levels through the system (from originating earth station to satelliteto receiving earth station) to ensure the quality of service should normally be done prior tothe establishment of a satellite link. This calculation of the link budget highlights thevarious aspects. EIRP required at the transmitting VSAT, Satellite EIRP which will berequired for a desired specified gain of this receiving system. Apart from the known lossesdue to various cables and inter - connecting devices, it is customary to keep sufficient link margin for various extraneous noise which may effect the performance. It is also asafeguard to meet eventualities of signal attenuation due to rain/snow. As mentioned earliera satellite provides two resources, bandwidth and amplification power. In most VSATnetworks the limiting resource in satellite transponder is power rather than bandwidth.With all their advantages, VSATs are taking on an expanding role in a variety of interactive, on-line data, voice and multimedia applications. Whether it is gas stationservice, rural telephony, environmental monitoring, distance learning / remote training orthe Internet, VSATs are truly poised to be the Space Age Technology. ICNET DEMAND ASSIGNED MULTIPLE ACCESS(DAMA ) DAMA is an access technique, which allows to be shared on demand basis, and takes anyadvantage of random occasional nature of telephone traffic, full mesh connection meansany point in the system can communicate with any other point. Primary application ruraltelephony, trunking and disaster recovery. Earlier SCPC ( Single Channel Per Carrier )system were analog uses high B.W. Mesh system uses less B.W than star system. Starsystem requires double hop for point to point connectivity requiring HUB for every call. Inmesh direct point to point connectivity can be accomplished after call set up. All thecomponents are modularized system intra call inter system calls, support C band and KUband. APPLICATIONS Voice data and other services, point to point data, thin route/medium route mesh DAMAfor voice band data, reassigned or dialup. High-speed data with bandwidth is on demand.FEATURES1 . U n i v e r s a l t e l e p h o n e i n t e r f a c e 2.digitized voice with

group three fax capability3.Voice data can be added in increments of one4.Traffic analysis and billing data collection5.continuous monitoring and control of remote station6 . p r i o r i t y c a l l h a n d l i n g 7 . M u l t i t r a n s p o n d e r support DAMA DETAILS Network uses a pool of satellite channels, which are available for use by any station in thatnetwork. On demand pair of available channels is assigned so that a call can be established.Once the call can is completed, the channels are retuned to the pool for an assignment toanother call. Since the satellite resource is used only in proportion to the active circuits andtheir holding times, this is ideally suited for voice traffic and data traffic in batch mode.Demand Assigned Multiple Access (DAMA) offers point to point voice, fax, and datarequirements and supports vide conferencing. A DAMA system is typically a single stopsatellite transmission network, which allows direct connection between any two nodes inthe network among many users sharing a limited pool of satellite transponder space.DAMA improves satellite network connectivity and resource utilization efficiency. In aDAMA system, the network allocates communications bandwidth to each call from a poolof frequency channels on demand-assigned basis. E.g. when a telephone user picks up thephone make a call, the request is made to a Network Management System (NMS) over theshared DAMA common signaling channel. The NMS function as a switchboard in thesky And determines if call is valid and establishes the channel (including bandwidth)between the call originating site and the called number. Circuits remain active only as longas needed, and then are broken to free bandwidth for other uses.When the call is completed,the remote terminals inform the NMS and the freed bandwidth is returned to the frequencypool. By using a DAMA system a single transponder can support several thousandsubscribers DAMA system quickly and transparently assign communication links or thecircuits to users on a call by call basis. After the call ends, channels are immediatelyreturned to the central pool, for reuse by others. By using DAMA, many subscribers can beserved using only a fraction of the satellite resources required by dedicated, point to pointSingle- Channel Per-Carrier (SCPC) networks. DAMA system is versatile, reducecommunication costs, and provide the customer total control of their satellitebasednetwork. NETWORK MANAGEMET SYSTEM ( NMS) NETWORK SYSTEM Its a part of client/server relationship. NS is centralized server AMT is a client NS is DOSbased system used for initial configuration and installation of the network access iscontrolled through the use of usernames, password and privilege levels . F R E Q U E N C Y A S S I G N M E N T S C A L L A S S I G N M E N T S C A L L I N I T I A T I O N R E Q U E S T C A L L T E R M I N A T I - O N R E Q U E S T O U T L I N K A L O H A R E T U R N L I N K A L O H A R E T U R N L I N K A L O H A R E T U R N L I N K R e m o t e s i t e

M a s t e r s i t e 1.Integrated system wide monitoring and control. Status of all equipments in the systemcan be displayed and controlled including power amplifier, up down converter, modems,multiplexer etc.2.Administration numbering plan, circuit types, trunking assignments, remoteconfiguration, password, security and system displays can be changed.3.Maintenance each CU individually tested status to be displayed in real time on AMT.4.Call processing detects origination calls, allocated BW , frequency correction.5.Monitors each call and issues teardown. It maintains through database of traffic statisticsand call detail records. This information is stored on hard disks of online and standbycomputers.NMS uses database management system (DBMS). The function of DBMS is to maintainsystem data in an organized structure it also maintains memory requirement databasedesignated for fast access and update additionally1 . R e d u n d a n c y support2.Equipment control3 . U s e r i n t e r f a c e SYSTEM SIGNAL FLOW MASTER SIGNALLING The master signal channel units (MSCUs) at the master site are digital satellite modem andcommunications processors which reside in the NMS and provide the signaling interface toremote equipment. The MSCUs transmit the outbound signal known as the out link, receivethe inbound telecom signal (return links), and receive the monitor and control (M &C)inbound signal. The outbound signal is monitored by all remote channel units as a pilotsignal. The outbound signal is also used for data communication from the NMS to theremote channel units. The figure below shows a basic network system signal flow. Theremote site generate call requests to the master site NMS using the return links. OUT LINKRETURNLINKNETWORKSERVERLOCALCHANNELEQUIPMENTMONITOR &CONTROLRETURNLINKRETURNLINKSYSTEM CONTROLCALL ASSIGNMENTM&C QUERIESCALL REQUESTSCALL ENDCALL REQUESTSCALL ENDCALL REQUESTSCALL ENDM&C POLL RESPONSESATELLITE MODEM EQUIPMENT REMOTE SIGNALLING The NMS generates a continuous outbound link to communicate with the remote sites.Each channel unit (CU) continuously monitors this stream of data for messages addressedto its site ID/channel number. Each CU also monitors the out link when it is not carryingdata or voice traffic. When a channel unit decodes a properly addressed message, itresponds appropriately on one of the return links or the M&C return links. Using a separatelink for monitoring and control messages ensures the data does not use system-signalingresources and reduce the call handling capacity. The M&C return link allows failures to bequickly detected. The figure below depicts a typical signal flow between the master stationand remote sites . CALL SETUP MANAGEMENT The mesh DAMA system is a SCPC system with carrier assigned on demand mesh meansCUs a remote can communicate directly.1.A satellite based DAMA call starts when subscriber lifts handset, CU detects off hook condition and issues dial tone to the caller. The caller dials the number of the calledparty.2.Caller CU sends call request to NMS message contains number of called party andaddress of CU exchange unit. This takes 0.25 seconds to travel to and fro from satellite.3.NMS checks its database assign satellite bandwidth to call. NS sends call assignssatellite BW to call. NS sends call assigns satellite BW to call. NS sends call assignssatellite BW to call. NS sends call assignment message to two channel units (first andsecond

party). A TX & RX frequency is contained in call assignment. Assignmentmessage send is transmitted on ALOHA frequencies, which are fixed in Mastersignaling channel unit system.4.CU exchange tuned to the assignment frequency and exchange link setup message. These messages verify that can receive each other. Once link established phone willbegin to ring.5.When second party lifts the handsets CU exchange will detect the off hook conditionand send off hook message to the first CU. After off hook message, it convertscompressed Data into voice again.6.Call is ended when one subscriber or both hang-up telephone. The CU exchangedisconnects message and drops their carriers. One CU will send call end message toNMS so that it creates CDR and release BW to another call and two frequencies areavailed.The place where all the process of allotting frequency is carried out is call as masters siteor HUB station. Master site provides overall network monitoring and administration. Themaster site provides redundant network servers, administration and maintenance terminals(AMTs), master signaling channel units (MSCU), an RF subsystem and an antenna. Inaddition, the master site can contain additional channel units. The system has redundantcomponents and protection switching. This allows continuous uninterrupted operation incase of failures and prevents loss of call processing. ADVANTAGES OF VSATS If by now you believe that VSATs provide an edge over terrestrial lines only in caseswhere the land lines are difficult to install, say in the case of remote locations, thenconsider this. Close to 50 percent of the total VSAT population is installed in the US whichalso boasts of world's best terrestrial communications.Networking of business activities, processes and divisions is essential to gain acompetitive edge in any industry. VSATs are an ideal option for networking because theyenable Enterprise Wide Networking with high reliability and a wide reach which extendseven to remote sites. Last Mile Problem Let us begin with the situation where you have reliable high-speed links between cityexchanges for meeting your communication requirements. But before you begin to feelcomfortable, connections from the nearest exchange to your company's office often fail.Consequently, stretching what is technically called the last mile problem into much longerdistances. VSATs located at your premises guarantee seamless communication even acrossthe last mile. Reach You must be well aware of the limitations faced by terrestrial lines in reaching remoteand other difficult locations. VSATs,on the other hand, offer you unrestricted and unlimitedreach. Reliability Uptime of upto 99.5 percent is achievable on a VSAT network. This is significantlyhigher than the typical leased line uptime of approximately 80 to 85 percent. Time VSAT deployment takes no more than 4-6 weeks as compared to 4 to 6 months forleased lines. Network Management Network monitoring and control of the entire VSAT network is much simpler than anetwork of leased lines, involving multiple carriers at multiple locations. A much smallernumber of elements needs to be monitored incase of a VSAT network and also the numberof vendors and carriers involved in between any two user terminals in a VSAT network istypically one. This results in a single point of contact for resolving all your VSATnetworking issues. A VSAT NMS easily integrates end-to-end monitoring andconfiguration control for all network subsystems. Maintenance

A single point contact for operation, maintenance, rapid fault isolation and troubleshooting makes things very simple for a client, using VSAT services. VSATs also enjoy alow mean time to repair (MTTR) of a few hours, which extends upto a few days in the caseof leased lines. Essentially, lesser elements imply lower MTTR. Flexibility VSAT networks offer enormous expansion capabilities. This feature factors in changesin the business environment and traffic loads that can be easily accommodated on atechnology migration path. Additional VSATs can be rapidly installed to support thenetwork expansion to any site, no matter however remote. Cost A comparison of costs between a VSAT network and a leased line network reveals thata VSAT network offers significant savings over a two to three years timeframe. This doesnot take into account the cost of downtime, inclusion of which would result in the VSATnetwork being much more cost effective. Pay-by-mile concept in case of leased line sendsthe costs spiraling upwards. More so if the locations to be linked are dispersed all over thecountry. Compare this to VSATs where the distance has nothing to do with thecost.Additionally, in case of VSATs, the service charges depend on the bandwidth which isallocated to your network in line with your requirements. Whereas with a leased line youget a dedicated circuit in multiples of 64Kbps whether you need that amount of bandwidthor not. General flow chart concerning VSAT installation The actions that will follow the site survey until bringing the VSAT online are: Site surveyL i n e o f s i t e N O FindingA l l t e r n a t i v e N O PositionInstallationimpossibleYESYES INTERFEARENCE YESFindingA l l t e r n a t i v e N O PositionInstallationimpossibleYESNOR o enetratingNon of p penetratingNOM u t ESCableLength>30m<70mRG11Cable<30mInstallationAntennaallingmentIDUConfigurationVSATonline on Y SITE SURVAY Before installation, a field operations engineer should visit the site that the VSATis to de installed. The engineer has to take care of the following:1. Absence of high-rise buildings, trees etc, which may block the signal path.2. Absence of interference by using a gun and a field meter.3. Existence of AC power during installation.4. Existence of a clear, unobstructed line of sight to the designated satellite5. Acquisition of the longitude and latitude using GPS.6. Existence of a LAN network near the IDU.7. Estimation of the maximum cable length.8. Free access to the roof of the building.The IDU is designed for installation indoors. It may be placed on top of a bench or on ashelf in a rack. While placing the IDU the following requirements should be met:The IDU includes a fan for ventilation. To allow proper airflow and to guarantee safeoperation of the VSAT equipment, make sure that:The rear panel of the IDU is not covered.The IDU is not placed in an unventilated enclosure.At least 10 cm of space along the IDU sides are left for ventilation. Themaximum ambient temperature is 50 oC.Place the IDU where it can be easily accessed by a technician during maintenance. Place the IDU away from electromagnetic field emitting devices. H i s t o r i c a l V i e w o f t h e V S AT M a r k e t 1 9 8 6 1 9 8 8 1 9 9 0 1 9 9 2 1 9 9 4 1 9 9 6 1 9 9 8 1 9 9 9 HNS (MA/COM) 1st 2-way VSAT network(Wal*Mart)

AD/COM Sold to ScientificAtlanta1st VSAT LAN network (Toys RUs) Scientific AtlantaT r i d o m Sold to AT&T AT&T/HarrisA T & T / T r i d o m Sold to GE Equatorial Sold to CONTEL Comsat TP Sold to CONTEL CONTEL Sold to GTE GTE Spacenet N E C H / W G i l a t H / W S o l d t o G E GE/Spacenet Sold to Gilat Gilat/Spacenet F i g u r e 1 - H i s t o r i c a l V i e w o f t h e V S A T M a r k e t Network Systems (HNS) and Gilat/Spacenet control the majority of the VSATproducts and service market (Figure 2). The first two way VSAT networkwas deployed by MA/COM which was subsequently acquired by HughesNetwork Systems. Since then, HNS has been a consi stent p r e s e n c e i n t h e VSAT Industry. The mergers of another group of companies GTE Spacenet,AT&T/Tridom, GE/Spacenet led to the emergence of Gilat/SpacenetW h i l e t h e e n o r m o u s c a p i t a l i n v e s t m e n t m a d e b y both Gilat and HNS providea significant barrier to marke t entry, argument can be that market pricebehavior in the VSAT m a r k e t i s v e r y c o m p e t i t i v e r a t h e r t h a n d u o p o l i s t i c . Further pressures on prices is exerted by substitute technologies and will b e more fully discussed in later sections. For a complete example of the pitfallsa n d r e a l i t i e s o f V S A T d e p l o y m e n t , p l e a s e t u r n t o t h e a p p e n d i x . T h e V S A T M a r k e t VSATMarketSharein1998 HNS 47%Gilat40%Other13% Figure 2-VSAT Market Share With the recent emergence of Gilat as a significant and strong contender, theVSAT market is facing immense pressures on margin. This can be detectedb y o b s e r v i n g t h a t o f f i c i a l l y , H N S a n d G i l a t s t i l l practice 3 rd degree pricingdiscrimination, but because there are so many v a r i a b l e s i n t h e p r i c i n g structure, they are able to charge different prices

for each of their customers,s i g n i f i c a n t l y e n h a n c i n g r e v e n u e s . HNS, once having held significant market power, has been forced to r e e v a l u a t e it s market structure because of Gilat s relentless pursuit of m a r k e t s h a r e . T h i s h a s r e s u l t e d i n t h e c o n t i n u a l d e c l i n e i n t h e c o s t o f V S A T products and services with a commensurate increase in demand, both in U n i t e d S t a t e s a n d g l o b a l l y . Figure 3-TheDemand Curve of VSATTerminals The Demand Curve of VSAT Terminals 5 0 4 0 3 0 2 0 1 0 01 9 1 9 1 9 5 0000000000 979899 8 0 0 0 8 0 5 0 0 1 1 5 0 0 0 Quantity W ith the rapidly rising demand for high -speed data and othertelecommunication services, the VSAT industry is facing a d r a m a t i c c h a n g e in pricing structures and service offerings. As repo rted by Comsys, thed e m a n d f o r V S A T t e r m i n a l s h a s d r a m a t i c a l l y i n c r e a s e d over the past fewyears (Figure 4). The number of terminals deployed f o r t h e y e a r 1 9 9 8 w e r e 80,000 with respect to 58,000 in 1997, which accounts for a compound annualg r o w t h o f 2 7 % o v e r t h e p a s t t h r e e years. The Comsys 1999 VSAT report thengoes on to state that a to ta l of 500,00 0 te rminals a re glo ba lly d eplo yed .W e can de rive the price elasticity of demand from the following: =% Q/% P=( Q/ P) * (P/Q)= (80,500-58,000) / (3500 - 4700) * (3500/80,500)= -1.52Since the absolute value of is greater than 1, the price is elastic for theabove demand curve. This is further evidence that the market is competitive. Figure 4-Annual VSAT Bookings Annual VSAT Booki ngs Sites 10000080000600004000020000019951996 Year 19971998VSATs Booked

Proving that the market is competitive does not necessarily account f o r t h e rate of growth enjoyed by the VSAT industry. What does? A consumers u r v e y 3 places the technology s appeal in a more analytical light:R e a s o n F o r S e l e c t i n g V S A T % o f R e s p o n d e n t s C o s t S a v i n g s 9 1 % F l e x i b i l i t y 8 4 % R e l i a b i l i t y 8 0 % D a t a R a t e S u p p o r t 6 5 % N o o t h e r s v c m e t n e e d 4 1 % "O ur satellite network is a key competitive advantage. It's what lets us deliverour reservations at the lowest cost in the entire hotel industry. Frame relay w o u l d d r i v e u p a n n u a l c o s t s b y $ 2 m i l l i o n . W e c o u l d n ' t c o s t - j u s t i f y s w i t c h i n g to another technology, even if we wanted to." Says Maybe Lynn Goodendorf, d i r e c t o r o f t e l e c o m m u n i c a t i o n s operations for Holiday Hospitality Corp.(Holiday Hospitality is the corporate franchise for such hotels as Holiday Inn,Crowne Plaza, and Sunspree.) This statement helps explain why HolidayH o s p i t a l i t y C o r p w i t h i t s 2 4 0 0 - s i t e n e t w o r k i s sticking with VSAT s, despitea g g r e s s i v e p r o p o s a l s f r o m f r a m e r e l a y p r o v i d e r s . The case is far from unique. W ith increasing global trade, companies are t u r n i n g t o VSAT to reach a particular location in mountainous t e r r a i n a n d distant places, which prevent fiber or other lines from being laid cost -effectively. And it

s usually the only choice for the maritime and oil i n d u s t r i e s . The economic advantage of VSAT is not limited to usage. Unlike frame r e l a y , a VSAT network only has one piece of equipment to manage at the remotes i t e . T r a i n i n g a n d o p e r a t i o n a l c o s t s a r e s i g n i f i c a n t l y l o w e r t h a n a U n i x b a s e d system. Figure 5-Annual Cost/Site of Alternatives Annual Cost/Site 1.5/256KASDL1 M - 56K/128KFrameRealy 128VSAT5 K e s d i e $1,000 $2,000 $3,000 $4,000 $5,000 . T1 5 512/ 6 L ae L $0 n $6,000 $7,000 $8,000 Cost/Site VSAT services can help companies avoid the long provisioning delaysinvolved in the deployment of conventional leased lines. Depending on thenational PTT and the location of a network site, p r o v i s i o n i n g o f l e a s e d l i n e s in some places can take six months or more. If a site is located far off thebeaten path, PTTs may even require their customers to pay some or all of the e x p e n s e s i n v o l v e d i n r u n n i n g a leased line to that site. W ith VSAT service,operators say they can establish working links in four weeks or less, withinstallation charges limited to the cost of setting up the VSAT earth stations.VSAT services also holds the promise of delivering more reliable connectionscompared with conventional leased lines in many parts of the world.Although VSAT transmissions can be adversely affected by environmental c o n d i t i o n s l i k e r a i n s t o r m s , a v a i l a b i l i t y g e n e r a l l y i s m u c h g r e a t e r t h a n t h a t o f conventional leased l i n e s . When it comes down to dollars, general cost comparisons between VSATs e r v i c e s a n d t h e i r t e r r e s t r i a l e q u i v a l e n t s r e v e a l t h e s t r i k i n g advantages of thetechnology. Charges for terrestrial services are d i s t a n c e d e p e n d e n t , w h i l e VSAT connections cost the same whether sites are 1 or 1,000 miles apart.VSAT customers can immediately enjoy economies of scale as networksexpand; most of the operator's fixed costs are located in the central hub whichis needed regardless of how many VSAT s a r e i n s t a l l e d . But what's most clear in terms of costs is that VSAT charges are comingd o w n - - a n d f a s t . T h e y ' r e j u s t a t h i r d o f w h a t t h e y w e r e a fe w yea rs a go.W hat's beh ind the p rice decline? Se vera l facto rs, including reductions inequipment prices and import tariffs, e c o n o m i e s o f s c a l e a s h u b s h a n d l e greater numbers of connections, efficiency improvements as operators gaino perational experience, and aggressive competion. VSAT operators as a rule c h a r g e f l a t m o n t h l y tariffs--which is likely to be a welcome change forcustomers tired of interpreting unpredictable, volume -based terrestrialequivalents bills from PTTs and others. M o d e l i n g U . S . V S A T D e p l o y m e n t In order to understand the future of VSAT technology we will constructa model of its present employment in the United States. T h e m o d e l i s based the hypothesis that VSAT employment is a

monotonically decreasing,p i e c e w i s e l i n e a r f u n c t i o n o f p o p u l a t i o n density. This model will be generalenough that global application should be possible, with the appropriate a d j u s t m e n t s f o r p e r c a p i t a i n c o m e a n d t h e a v a i l a b i l i t y o f s u b s t i t u t e s . Discussion is limited to VSAT data and video services off ered in the UnitedStates by the two principal players in the VSAT industry, Hughes Network Systems, Inc. and Gilat Satellite Networks Ltd. These two c o m p a n i e s account for 88 % of the market. Telephony applications will be excluded fromt h i s s t u d y a s t h e y a r e i n s i g n i f i c a n t i n t h e U . S 4,5 .T o s u p p o r t o u r t h e s i s , w e w i l l e x a m i n e t h e H u g h e s p a r t i a l c u s t o m e r d a t a b a s e for hub based services as described in the Comsys 1999 VSAT report entitled VSAT INDUSTRY STATUS REPORT TO CLIENTS: HUGHES N E T W O R K SYSTEMS: American Services . This selection is made as the largest a p p l i c a t i o n o f V S A T i s h u b b a s e d data services 6,7 a n d H u g h e s i s t h e acknowledged leader in hub services. Study of t h i s d a t a r e v e a l s t h a t t h e majority of users of hub services (1998) can be grouped into eight categoriesa s l i s t e d i n t a b l e 2 . C a t e g o r y I n s t a l l e d R e t a i l e r s 3 5 , 4 0 2 A u t o m o t i v e C o m p a n i e s 2 , 8 2 5 F i n a n c i a l 1 , 7 3 6 H o s p i t a l i t y 1 , 5 8 7 S e r v i c e P r o v i d e r s 1 , 5 6 1 S C A D A 1 , 1 9 8 T e l e c o m 5 4 2 D i s t a n c e L e a r n i n g 3 9 5 Table1: User Categories Noting that retailers are the most prevalent group of users, w h i c h i n c l u d e petroleum distributors, food and drug stores, it is e a s y t o i m a g i n e t h a t a t least one of these businesses will appear in relatively small towns. As thetime necessary to perform an adequate survey

was not available, the dataw i l l b e s i m u l a t e d b y p o s t u l a t i n g t h a t a t a p o p u l a t i o n d e n s i t y o f 5 0 0 p e r square mile, there will be at least one VSAT user per jurisdiction. After this p o i n t , w e w i l l m o d e l VSAT terminal population to scale linearly withpopulation density.VSAT population density = A * P d A = scaling factor, b = y intercept P d = pop. density; P d > 500 / mi 2 on the previous model we note that there are significantly more than 1 0 0 , 0 0 0 business in the United States. According to the 1998 US Census 8 , there wereover 22.3 million corporations, partnerships and nonfarm proprietorships.Even if we allow that only 30% of these entities have n e e d f o r d a t a s e r v i c e s , that number exceeds 100,000 by more than an order of magnitude. Therefor,a t s o m e p o i n t , t h e V S A T d e n s i t y f o r m u l a postulated in the preceding section m u s t f a i l . One possible h y p o t h e s i s c a n b e g e n e r a t e d b y e x a m i n i n g t h e o t h e r m o d a l i t i e s of data transport; due to the cost of infrastructure, the economic advantage ofV S A T i s i n v e r s e l y d e p e n d e n t u p o n t h e d i s t a n c e f r o m t h e p o i n t o f applicationto a population center. Perhaps, at a certain population density, sufficientt e l e c o m m u n i c a t i o n s i n f r a s t r u c t u r e w i l l e x i s t a n d m a k e V S A T m u c h l e s s attractive. Data services with greater bandwidth, much lower latency andlower cost become readily available. W e will postulate that at a secondcritical point of population density, VSAT employment begins to fall off. W ewill we will use Madison, W isconsin to test for a point of inflection in thed e p l o y m e n t f u n c t i o n . Madison is a rapidly growing, medium s ize city. It is the State capitol, homeof the University of W isconsin and a number of large insurance companies,all of which depend heavily upon electronic data systems. Madison is alsonearly 90 miles from M i l w a u k e e a n d 2 0 0 m i l e s f r o m C h i c a g o . T h i s convergence of distance to communications hubs and a strong need for dataservices make Madison a good candidate for providing the second critical p o i n t o f t h e p o p u l a t i o n density function. According the 1998 US Census 9 ,M a d i s o n h a d a p o p u l a t i o n o f 1 9 8 , 0 0 0 l i v i n g i n a s p a c e o f 5 7 . 8 m i l e s , yieldingan average population density of 3,400 / mi 2 .T o d i s c o v e r i f t h i s p o p u l a t i o n d e n s i t y w i l l y i e l d a p o i n t o f i n f l e c t i o n i n t h e VSAT deployment function, we use the Hughes partial customer database 10

again. By cross checking t he Hughes database against the Y A H O O . c o m yellow pages for Madison, we can get an approximate VSAT terminal census.T h e r e s u l t s o f t h i s s u r v e y a r e p r e s e n t e d i n t a b l e 2 . Table 2: VSAT Users In Madison, WI CompanyBed, Bath & BeyondBest WesternBeverly EnterprisesBlockbusterConsolidated FreightHughes MallServicesKohl sMarathon OilMobil OilNBC (affiliate station)Pep BoysShell OilShopKoTarget StoresTexaco TOTAL Number of Sites in Madison, Wisconsin 1317110317123434 51 We have assumed, for the purposes of the census that the VSAT penetrationr a t e f o r t h e b u s i n e s s e s i n M a d i s o n t h a t c o r r e s p o n d t o t h e H u g h e s r e p o r t , i s 100%. Therefor we expect approximately 51 VSAT terminals inside ofMadison s borders. This corresponds to a VSAT density of51 VSAT / 57.8 mi 2 or0 . 8 8 V S A T / m i 2 at a population density of 3,400 / mi 2 This can not be considered a point of inflection and was not anticipated. Weh a d e x p e c t e d t h a t t h e d e m o g r a p h i c s w o u l d f o r c e a n i n c r e a s e i n VSAT densityw i t h i n c r e a s i n g u r b a n i z a t i o n u p t o s o m e p o i n t o f i n f r a s t r u c t u r e d e v e l o p m e n t . W e then anticipated a decreasing f u n c t i o n t h a t w o u l d a s y m p t o t e , t o s o m e number greater than zero because of point of sale (PoS) operations. To further d e v e l o p t h e m o d e l , a data point at the other extreme will be developed, New Y o r k C i t y . . CompanyBed, Bath & BeyondBest WesternBeverly EnterprisesBlockbusterConsolidated FreightHughes MallServicesKohl sMarathon OilMobil OilNBC (affiliate station)Pep BoysShell OilShopKoTarget StoresTexaco TOTAL Table4:VSAT UsersInNew York, NY Number of Sites in New York, New York 131401271313015178601273 233 This highly representative census yields 233 VSAT terminals i n s i d e o f t h e borders of New York City. According to the 1998 U.S. Census 11 , N Y C h a d 7,381,000 inhabitants living on 308.9 mi 2 . This corresponds to a VSATd e n s i t y o f 233 VSAT / 308.9 mi

2 or0 . 7 5 V S A T / m i 2 at a population density of 23,900 / mi 2 V AE py ets outn es1.110.90.80.70.60.55 S T ml mn . pli Dni o vP a t o y 0 0 3 4 0 0 2 3 9 0 0 Population Density This leads us to a surprising conclusion that VSAT employment is a linearlydecreasing function of population d e n s i t y i n t h e U n i t e d S t a t e s . T h e f u n c t i o n can be described by . VSAT / mi 2 = -10.68 x 10 -6 (P d ) + 0.916Where P d = Population Density

W e have presented an argument that there is an anti-correlation betweenVSAT density and population density. Clearly, the model s u f f e r s f r o m a paucity of data points; the census relies too much upon too few businessesi n t o o f e w l o c a t i o n s . A n o t h e r s o u r c e o f e r r o r i s i n t h e fuzzy definition of jurisdiction. Despite all of these of errors, what can we infer from the data?There is no doubt regarding the future of the VSAT industry g r o w t h i s typically quoted at a rate of 30% per year. First, we can say that for anygiven locality, increasing u rbanization or d e n s i f i c a t i o n d o e s n o t , a t t h e very least, strongly correlate to increased VSAT employment. VSATu t i l i z a t i o n m u s t b e d r i v e n b y o t h e r t r e n d s . By examining the key features of the VSAT technology, we can begin toi d e n t i f y t h e s o c i o - e c o n o m i c f a c t o r s t h a t a r e d r i v i n g V S A T s r a p i d g r o w t h : 1. Rapidly deployable telecommunications networks.2. Network diameters of continental or global scale the marginal costof distance is essentially zero. 3 . F r e e d o m f r o m terrestrial infrastructure development costs.4. Freedom from PTT a n d I L E C i n t e r f a c e r e q u i r e m e n t s . Two major trends in business require the communication technologiest h a t e x h i b i t t h e a f o r e m e n t i o n e d properties: globalization and growth byacquisition and alliance. B e h i n d t h e g r o w i n g i n t e g r a t i o n o f t h e w o r l d economy lies the decline in the costs of transport and communication. B e t w e e n 1 9 3 0 a n d 1 9 9 0 a v e r a g e r e v e n u e p e r m i l e i n a i r t r a n s p o r t f e l l f r o m 68 US cents to 11 cents, in 1990 dollars. The cost of a three -minutetelephone call between New York and London fell from $244.65 to $3.32.Between 1960 and 1990, the cost of a unit of computing power fell 99 percent. This startling analysis was presented in a October 1, 1997 FinancialT i m e s a r t i c l e 12 . While the reader is left to ponder the chicken and egg nature of global business and technology, one thing is clear t h e e n d o f t h e 20 th

century has given rise to the multi -national corporate business model.Large business information networks have become, almost by d e f i n i t i o n , global in scale.G l o b a l i z a t i o n c a n a l s o b e p r e s e n t e d i n a n a l t e r n a t i v e l i g h t . C h a i r m a n o f t h e Federal Communications Commission, Bill Kennard, has said "W e can'tafford to have in this country a digital Dark Ages where some people are justcut off from all this technology T h e r e ' s a r e a l d a n g e r i n t h e c o u n t r y t h a t some Americans have all this wondrous technology and it makes them s m a r t e r a n d m o r e c o m p e t i t i v e i n the workplace and others are leftbehind 13 " Without doubt, other PTT and communications bureau c h i e f s have come to the same realization; access to communications technology forall is essential to the economic well being of a country. Having access tok n o w l e d g e a n d m a r k e t s c a n v e r y w e l l b e t h e d i f f e r e n c e b e t w e e n a g r o w i n g economy and a backwater. Many of the developing countries face the doubleb u r d e n o f s m a l l G N P a n d f o r m i d a b l e n a t u r a l b a r r i e r s . The combination

makes the development of standard telecommunications infrastructureimpossible. VSAT, with the capability of leaping tall mountain ranges in asingle bound, is a solution that is being exercised with greater regularity.W hile telephony is a moot point for VSAT in the United States, it is not inthe rest o f t h e w o r l d . The last trend that requires the capabilities of VSAT is t h e c o n c e n t r a t i o n of market power and scope by acquisition and merger.V o d a p h o n e / M a n n e s m a n n , A t l a n t i c T e l e c o m / M a r c o n i , A m e r i c a n HomeP r o d u c t s / W a r n e r - L a m b e r t , t h e l i s t o f m e r g e r s a n d acquisitions is large,growing larger and is global in n a t u r e . These ventures require rapid placement of global diametertelecommunications networks. These networks must be dynamic ass u p p l i e r s , p a y r o l l a n d p e r s o n n e l , m a n u f a c t u r i n g l o c a t i o n s a n d c h a i n s of command change on almost an overnight basis.We can see by examining the top ten customer list for Hughes and Gilat t h a t t h e common denominator is continental or larger network diameter. Table3-Top10 CustomerListforHughesandGilat H N S ' " T o p 1 0 " C u s t o m e r s G I L A T ' S " T o p 1 0 " C u s t o m e r s C u s t o m e r s A p p l i c a t i o n # o f S i t e s C u s t o m e r s A p p l i c a t i o n # o f SitesE D S D a t a S e r v i c e s 1 0 6 6 0 M C I / U S P o s t a l S e r v i c e P o s t a l S e r v i c e s 2 6 , 0 0 0 H O T T e l e c o m D a t a S e r v i c e s 1 0 0 6 2 G T E C H W o r l d w i d e L o t t e r y 1 1 , 5 0 0 A m o c o G a s S t a t i o n 6 9 0 7 A l l i a n c e D a t a S y s t e m s G a s S t a t i o n s 6 5 0 0 I m p s a t R u r a l T e l e p h o n y 6 7 2 7 T e l e s p a z i o F i n a n c i a l N e w s 4 8 5 0 M o b i l O i l G a s S t a t i o n 6 4 9 6 R i t e A i d R e t a i l & I n t r a n e t 4 3 0 0 F o r d A u t o m o t i v e 6 3 3 2 I B M / P e u g e o t C i t r o e n A u t o m o t i v e

4 C v a N S S T o S g 0 S S T

2 0 0 C h r y s l e r o r p o r a t i o n A u t o m e 6 3 2 2 C h i n a S a t e l S t o c k e w s 3 8 0 0 C h e v r o n G t a t i o n 5 9 8 6 T e l k o m o u t h A f r i c a R u r a l e l e p h o n y 3 0 0 0 T e l m I t a l i a D a t e r v i c e s 4 5 4 0 e n e t P a g i n g 3 T e x a c o S t a r G a s t a t i o n 4 1 3 5 N a t i o n a l t o c k E x c h a n g e S t o c k r a d i n g 2 1 0 0

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