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Creating a new landscape for satellite broadband over Europe and beyond


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SES Seminar Series - Committed to sharing excellence
IBC, Amsterdam RAI, September 2012

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Creating a new landscape for satellite broadband over Europe and beyond

  1. 1. Together with SES at IBC 2012 September 6-11, 2012
  2. 2. Creating a new landscape for satellite broadband over Europe and beyond Antonio Bove, Senior Manager, Products & Marketing SES Broadband Services
  3. 3. Agenda  SES Broadband. Our view, our positioning  Broadband in rural areas: urban legends and laws of physics  Voice is dead, broadband only will be soon a commodity how do you feel?  Beyond broadband only proposition. New paradigms for multiple play offerings  Emerging markets. Rising economies hungry of last mile connectivity. Why satellite broadband fits so well 3
  4. 4. SES Broadband High-speed broadband internet via satellite for individuals and businesses New attractive Ka band offering Up to 20 Mbit/s Cheapest terminal on the market
  5. 5. SES Broadband – Key advantages  higher download and upload speeds  providing high quality user experience  always-on connectivity for broadband and VoIP  high performance and low cost end user terminal  do-it-yourself installation  no infrastructure investment required  capable of large network deployments  Triple play capable 5 Distributed to the end users via local service providers in: - 23 countries in Europe - 7 countries in the Middle East - 31 countries in Africa
  6. 6. European service coverage Ku/Ka-bands 6
  7. 7. Ka-band modem – Gilat 7  Download speed up to 20 Mbit/s  DO-IT-YOURSELF Installation & Automatic Commissioning  Optimized for VoIP, Video and IPTV  High Performance Multicast  Advanced QoS/FUS Supporting Variety of Service Plans  TCP and HTTP Acceleration  IPv4, IPv6, DHCP Server & NAT  Provided with 75cm/2.5W antenna
  8. 8. Ka-band terminal – Newtec 8  Download speed up to 16 Mbit/s  Easy ‘Point & Play Tool’ for DO-IT-YOURSELF installation  4CPM true MF-TDMA Adaptive Return Link  High speed connection with embedded acceleration, encryption and pre-fetching  Over-the-air software upgradeability and monitoring & diagnostics tools  MicroSD card and USB interfaces  Streaming video and audio with TV quality  VoIP telephony (SIP, H.323, …)  Provided with 75cm/1.5W antenna
  9. 9. Broadband in rural areas urban legends and laws of physics 9 What is the European broadband market about?  In 2011 connected European homes are still only 60% of total households1)  Current broadband delivery technologies at their maximum capabilities could reach 90% of all households in Europe 0 100000 200000 300000 400000 500000 xDSL Cable Internet FTTH/B Total Connected Homes Technology reach Europe's broadband homes connected and passed per infrastructure technology in 2011 vs. Technology reach Sources: Dataxis, EU Commission, Screen Digest 60% 40% Broadband penetration Connected homes Not-Connected homes % of connected homes, total HHs 306 Mio, 2011 EoY – Sources: Dataxis, EU Commission, Screen Digest 1) Including Turkey and European CIS countries (Russia, Ukraine, Kazakhstan, Belarus)
  10. 10. Broadband in rural areas urban legends and laws of physics 10  87% of the connected European's HHs have access up to a nominal 2Mbps  40% have access up to a nominal 10Mbps  5% of the European's HHs have access to a nominal 30Mbps  Observed average connection speed in Europe is around 4.1 Mbps  22% of the connected European HHs have sustainably more than 5Mbps Fixed lines by speeds and member states - original categories, January 2012 Source EU's Digital Agenda Scoreboard Today broadband penetration remains still low and far away from EU targets due the economic sustainability of a given technology by population density at target ARPU
  11. 11. Broadband in rural areas urban legends and laws of physics 11 What is broadband? A clear definition  Broadband shall allow to the vast majority of European population fair access to internet by providing at least 2 Mbit/s download speeds at affordable costs  What really counts at the end is the ultimate user experience and broadband customer’s requirement today is to be always-on - to easily access information and knowledge and be constantly part of a global and connected world  A fair look at existing broadband services availability shows that underserved and unserved market still counts at around 10% of European population, and this area is predestined to enlarge rather than to reduce as a linear factor of download speeds increase in urban areas  In short SES forecasts that the fork between who will get fair and fast access to internet versus who will not be able to get decent connectivity will enlarge Observed average speeds Source: Akamai 0 1 2 3 4 5 6 7 Average Mbps 0% 20% 40% 60% 80% 100% 120% > 5 Mbps > 2 Mbps <2 Mbps
  12. 12. LTE’s missing promises for rural areas Prediction: mass scale FTTH will fall apart Broadband in rural areas urban legends and laws of physics 12  Due to technical and economical reasons the roll out of LTE technology to address the last 10-20% of European population is not evolving as planned  European Telco’s have heavily invested to acquire 3G spectrum nevertheless the additional CAPEX required to provide last mile connectivity make the business case in low populated areas not sustainable  In spite of marketed performances of LTE technology, being able to provide 50 Mbit/s, the real user experience is still a linear function of the distance from the LTE’ base station  As for all shared mediums the more the users are connected to a given base station the lower is the experienced download speed and ultimately the end- user experience  FTTH deployment on a large scale is a timely and costly exercise and is far from being achieved  The 100 Mbit/s symmetric services for the mass market will have difficulty to get a fair market penetration at given price targets  Out of the 27.9 million households connected to fibre by the end of 2011 in EU35, only 5.15 million have actually subscribed to the fibre-connectivity services  Most of the European population seems to be satisfied with the average broadband speed it currently gets, and is controlling its recurring personal expenses in the present time of economic crisis  Even in the countries with high FTTH penetration, average traffic volumes did not increase dramatically and traffic patterns have remained stable (relatively high asymmetry between forward and return speeds)
  13. 13. The satellite perspective Our view  Satellite broadband addresses between 5 to 10% of households in Europe also where terrestrial broadband penetration is relatively high  Satellite broadband users are geographically dispersed therefore channels to the market are fragmented  SES is focused on selected markets where the potential penetration is significant and it is reflected in our Ka band roll out  Our policy is to moderately increase Ka-band capacity, adding specialized transponders to some of European satellites as market development dictates  When the ground segment for the Ka-band service will be deployed, SES will have invested no more than around 50 million euros 13
  14. 14. Voice is dead, broadband only will be soon a commodity, how do you feel? OTT, Multiscreen & Non-Linear Viewing: Video Traffic Evolution "The sum of all forms of IP video (Internet video, IP VoD, video files exchanged through file sharing, video- streamed gaming, and video conferencing) will ultimately reach 90 percent of total IP traffic." (video conferencing and gaming to remain very low) Today, despite coverage(*) / quality limitations, the traffic generated by the currently less than 10% non- linear viewing already created a major cost/revenue disconnect for multi-play operators (*) EU27: 36% HHs do not subscribe to Internet and 70% of these Internet HHs get less than 5Mbps average speed which is insufficient for a quality multiscreen experience 14 90% of the expected residential broadband consumption growth is expected to be video
  15. 15. Backhauling & Tower Feed Trunking Off-loading & De-clustering "1 dish per village": backhauling a femto/picocell or a WiFi repeater + possibly a DVB-T/H gap filler Backhauling cellular Base Stations or DSLAMs with data or (mobile) video Feeding a DVB-T/H emitter Feeding edge CDNs Homes: delivering sustainable multi-play to multi-screens; complementing DSL & cellular broadband (1-way) or stand-alone (2-way) Hybrid & 2-way Multiplay International or National trunking on C-band and with O3b DTH, Multimedia streaming Internet access & push content Beyond broadband only proposition New paradigms for multiple play offerings 15
  16. 16. Increasing content across multiple devices How ISPs can increase customer base and ARPU WiFi wired Router DVB in 16 Interactive home gateway + Sat BB in/out Functionality  IP based TV reception through SAT>IP enabled devices  Residential broadband access + VOIP through SES Broadband for single homes DVB-TV Broadband IP SES Broadband
  17. 17. Emerging markets Rising economies hungry of last mile connectivity. Why satellite broadband fits so well 17 0% 20% 40% 60% 80% 100% 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 2012 2013 2014 2015 Population Europe North America Latin America Asia Pacific Africa Middle East Europe % North America % Latin America % Asia Pacific % Africa % Middle East % Broadband penetration 0 20 40 60 80 100 120 Europe North America Latin America Asia Pacific Africa Middle East Density (inh/km²) Broadband penetration in Emerging markets is the half of the everage penetration in Europe Population density in all regions is well below 40 inh/Km2 service networks has been concentrated in big cities only Macro economic trends are positive thanks to GDP gowth in target areas
  18. 18. Emerging markets Rising economies hungry of last mile connectivity. Why satellite broadband fits so well 18 … according to the market target & network coverage  DSL Light: product for areas with low speed internet  Mobile Broadband: one way product to complete MNO coverage  Rural Internet: product for service in distant areas or w/o coverage  E-Government: product for the service roll out in area of low density along with the governments of each country Products Matrix (+) (-) Populationdensity (+) (-)Networks coverage Rural internet E-Gov Mobile BB E-Gov Rural internet Mobile no CoverageTerrestrial DSL Light
  19. 19. Conclusions How the 4PS apply to consumer broadband • Stylish • Ease-of-use • Innovative • Flexible • Triple-play enabled Product • Channel to market is key • Lean cost structure with associated incentive schemes • Optimized supply chain Placement • 2008: lowest CPE price in the market • 2012: we will do better Price • Bundle offers • Financing/leasing schemes • No limits to imagination Promotions 19
  20. 20. SES Broadband Services Chateau de Betzdorf L-6815 Luxembourg Phone: 00352-710 725-545 For further information please contact us:
  21. 21. Thank you!