Johannesburg, 07 Mar 2019
Satellites are extremely high up in the sky. At 35 000km, this is very high, and for some users this just embodies the "up in the air" and "impractical" nature of satellite technologies. In reality, though, the satellite industry is currently fast-growing, very dynamic and rapidly changing, with many innovations being launched or planned in the near future.
The question then is why a global industry will develop advanced technologies, more services, higher data rates, etc, while many users and target market sectors believe it doesn't offer an attractive value proposition to business.
Context, context
The first perspective we should consider to truly understand the satellite services industry is revenue, and revenue potential. Today, a satellite services network of 10 000 terminals is a big network, and at an average revenue of R2 000 per site per month, will yield revenue of R240 million. Now consider R86 billion annual revenue. That is the equivalent of the published Vodacom annual revenue for 2018. Within the context of typical revenue of large telcos, satellite projects are 0.2% of the revenue, or less.
Add to this the requirement for special satellite skills, focused product development teams, and customised marketing efforts, then it is rather obvious that the satellite services business case for large telcos is not very attractive.
Yet, at an expected product revenue of R200 million, plus the need for specialised help desks, field implementation support team, marketing campaigns and well-trained sales teams, it is by no means a small operation either. For certain, it is not within the scope of the general regional metro service providers.
Satellite business case is too small for the big telcos and too big for the service providers.
Basically, satellite is too small for the big telcos and too big for the regional or national service providers.
Loudest voice
In the digital communication era, and within the saturated marketing landscape we all live in, we can accept that the biggest voices, and the most expensive marketing campaigns, get the messages across to the general market. We all know about 5G, and LTE+, and all the other jargon, not necessarily because we have studied the subject matter, but because we were simply flooded with this as part of the mobile network marketing campaigns.
So, if you don't know about the latest advances in the satellite industry, and GEOs, LEOs, MEOs, HTS, Ka-band and all of that jargon is rather foreign to you, it doesn't necessarily mean it is not relevant to you. It simply means it is part of the niche field of satellite services and will not be included in the mass campaigns of the big telcos. You also now understand why it will never be included.
The way forward
Now that we understand that satellite is big business, just not big enough for the national telcos, and we understand that because we don't hear about satellite, it doesn't mean it is not relevant, we can move ahead and resolve some business problems effectively.
Step one is to find your satellite service provider of choice.
Today, satellite products are specialist managed services best delivered by service providers with the right satellite engineering and delivery skills.
Satellite networks are no longer about just contracting some satellite space segments, buying a hub and installing some remotes. These networks have become very, very specialised. With layer2-over-satellite capabilities, data rates of 70Mbps using 2.4m terminals and full-mobility options, you are best serviced by a service provider that specialises in satellite and niche technologies. Delivery of these services is 50% about network engineering and 50% about service delivery. It includes field implementation resources as well as 24/7 remote monitoring capabilities, etc.
Do the right thing and find the specialist service provider with the skills, experience and capabilities to deliver value to your business.
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