Satellite DSL on the cards

Intelsat, the recently privatised satellite operator, hopes to start providing direct satellite broadband services in SA soon.

CEO Conny Kullman, currently visiting the country, says the company is in discussions with Telkom to put two-way satellite broadband in place. A decision from Telkom is expected soon.

Similar services are already up and running in Eastern Europe, but SA and the rest of the continent seem to be even likelier customers.

"We have seen a lot of interest in Africa," says Kullman.

The Intelsat Broadband Service offers a down channel of between 2Mbps and 48Mbps with a return pipe of between 512Kbps and 8Mbps. The asymmetrical digital subscriber lines (ADSL) currently offered by Telkom have a download channel of 512Kbps and 512Kbps upstream.

However, access to the copper-based ADSL is strictly limited, with no lines available to users more than 3.5km away from their local exchange and throughput dependent on the quality of the existing line.

The satellite version may be more expensive, but it will also be more accessible and that does not only hold for rural areas, or for Africa.

"I live in a high-income neighbourhood in Washington, inside the Washington beltway, and I can`t get DSL at my home," says Kullman.

Should Telkom adopt the service, interest is expected both from the traditional broadband market of small business and consumers, estimated at 300 000 by Telkom, and the likes of rural schools.

While discussions with Telkom continue, Intelsat has concluded deals with operators MTN and Vodacom to carry cellular traffic for their operations elsewhere on the continent.

A contract with Vodacom covers 20 base stations in Tanzania and the Democratic Republic of the Congo, and the company`s new business in Mozambique is expected to be included soon. Intelsat is linking stations in Nigeria, Uganda and Cameroon for MTN.

"This is a new strategic direction for the company," says Kullman. Intelsat, previously an intergovernmental organisation, traditionally focused on providing services to its constituent national fixed-line operators.

However, the advantage of a direct satellite link between base station and core network is becoming obvious, says Kullman, and Intelsat is working closely with system integrators to provide cellular networks that are quick and less capital-intensive to set up.

Although the company sees an opportunity for such services in Asia and Latin America, it is Africa that will be the major focus. Flavien Bachabi, Intelsat`s regional sales VP for Africa, says networks are increasingly looking at satellite to replace the traditional microwave links between base stations.

"Because there is often so little infrastructure, we see a great need here," he says.