Internet by Satellite.
Could it damage your business?

Mar 2004

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The huge demand for broadband internet services has also highlighted the limitations of the ADSL service in the UK. There are a considerable number of consumers who want the benefits of broadband but have been told they can't have it - yet.

This may be because low demand in their area does not yet justify the costs of upgrading the local telephone exchange. Or it may be they are too far away from the exchange for present systems to deliver a reliable service. So what are the alternatives?

 

The Satellite Solution?
Cable TV companies offer high speed cable based solutions, but their coverage is often more limited than BT delivered offerings. Wireless services and other possibilities are rapidly becoming available, but the solution often offered is internet by satellite (IBS). In principal IBS is fast, easy to install and reasonably affordable. Indeed some IBS providers can now add their equipment to existing satellite TV dish installations to avoid a second dish on the property. Sounds like a great solution.

However these services have a number of drawbacks that may cause consumers to blame their installer for what could be perceived as a poor service - even if the hardware and installation itself were perfect. This could result in call-backs and arguments that could damage the reputation of competent and professional installation companies. So why might this happen?

 

Big Benefits for Consumers
The ADSL broadband service (and some cable services) heavily promoted on TV, offer several key benefits that consumers have identified as very worthwhile. The first is an “always on” service that allows 24 hour unlimited access to the internet, email and other web based services. The costs for these services are usually fixed, low cost monthly charges, no matter how long the service is used each day. In addition, these services do not tie up a telephone line and do not usually incur any telephone charges. High speed is also a big plus, with very fast browsing, fast interactive games etc.

 

Satellite May Not Deliver All Benefits
Today there are mainly two types of IBS service available. The two-way service provides a connection to and from the satellite and does not tie up a telephone service. It has fixed charges and is “always on”. So far so good.


However, 2-way IBS systems suffer from a substantial time delay, caused by the time it takes signals to reach the satellite and return back down to the earth station. Those of you that remember international telephone calls via satellite will recall the 1-3 second echo and delay when one person spoke to another. That's why most international voice calls don't use satellite any longer. Watch BBC1 TV via satellite and observe the time delay compared to BBC 1 TV from an aerial. That's half the delay time two-way satellite incurs.

In internet terms, it takes some considerable time for a key press on a PC to result in a reaction on the display. Every click of the mouse needs time before the internet page seems to react. Today, this type of service has major disadvantages for interactive games, rapid web browsing or VPN services for workers distant from their office computer service. However, on the plus side, it will deliver data very quickly, after the satellite time delay has elapsed. If a consumer wants to download large data files (e.g. 10MB+) or watch live video, this service is ideal. It can be very expensive, often costing thousands of pounds when installation and monthly charges are included.

 

The Compromise
There is a mid-way offering, called the one-way satellite service. It uses a phone connection to send your keyboard requests (usually small amounts of data) and receives the data back from the internet via satellite. It does tie up a phone line, is therefore not considered to be “always on” and will incur phone charges one way or another. It has less of a time delay than the two-way IBS services, but is still a poor performer when competing gamers battle over the net, or VPN applications. Indeed a standard 56k telephone connection can seem to respond more quickly in some applications. In brief, it costs more, ties up the phone and is interactively slow when compared to non-satellite services.

 

Cover Yourself Before You Install
The message is clear. To avoid being blamed for service limitations beyond your control, ensure the customers expectations of the service you are about to install are realistic. Make sure they understand the telephone may be in use when on-line, the file download speed is high but system reaction is slow and explain the higher charges if applicable. If you are using a small dish for reception, explain that rain fade could be a problem in poor weather. Once they understand what they are getting, the likelihood of consumer complaints will be significantly reduced.


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