Despite entering the high-speed Internet access race relatively late, satellite
broadband technology is gaining noticeable momentum among consumers.
Industry analysts say that even though satellite broadband still trails DSL
(digital subscriber line) and cable
when it comes to download rates -- and also is more expensive -- it is making headway
simply because it is easier to get the service, especially for those living in sparsely
populated rural areas.
"A lot of folks are seeing this as a very attractive service, especially the people who
live out in the remote suburbs and can't get access to other kinds of service,"
Meta Group senior research analyst Don Carros
told Wireless NewsFactor.
When satellite broadband was first rolled out in early 2001, the industry projected it
would have about 150,000 global customers within the first year. Instead, Carros said
that number has reached 450,000.
Serving the Boonies
Charles Golvin, a senior analyst with
Forrester Research, said his firm projects
the number of satellite broadband subscribers will total 1 million by 2006.
"By and large, these customers will be in rural and other locations where cable and
DSL don't reach," Golvin told Wireless NewsFactor.
Satellite broadband service is offered by a number of providers around the world -- led
by major players like DirecPC and
StarBand -- and works similarly to satellite TV.
With satellite broadband, a small dish -- usually measuring about 24 inches by
36 inches -- is placed on or near the home to receive signals from an Earth-orbiting
satellite. Standard coaxial cables link the dish to a satellite modem, which in turn
is connected to the PC.
Most broadband customers subscribe to DSL service offered by
local and regional telecom providers, with the next-largest group using service from
cable TV companies.
Time and Money
Both of those services currently trump satellite broadband not only in the number of
customers, but also on speed and price. Satellite offers download speeds of 400 kbps,
while cable and DSL typically can provide up to 1,500 kbps for downloads.
Satellite broadband also has problems with latency. Transmission lags, due to the
time it takes for satellites to beam and relay data  , make it less than ideal for
Internet gaming and other interactive services.
The leading satellite providers charge about US$70 a month for unlimited service, but
the user also must pay between $200 and $400 in installation charges, covering the
satellite dish, modem and transmitter cards. (continued...)
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