Advantages

• Because satellites are accessible from all over the world, the option of getting satellite Internet access is available to nearly anyone with a clear, unobstructed view of the southern sky. Satellite may be the one of the few options for rural residents without access to traditional wireline technologies, such as cable or DSL.
  
• Bundling of services is available through DirecWay, allowing for greater cost-efficiency.
  

Limitations

• Inherent high latency of satellite technology causes a half-second delay between mouse click and receipt of data due to data travel time between earth and the geostationary (GEO) satellite; web browsing, email, and ftp are largely unaffected by delay.
  
• Inclement weather (rain, snow, high wind) may cause periodic lapses in service.
  Shared bandwidth can mean slower speeds at peak hours.
  
• Upload speeds for two-way broadband rarely reach the maximum 128 kbps speed. Most often the upload maintains speeds of 56 kbps, which makes satellite a less attractive option for economic development/small business purposes.
  
• Trees, mountains, or tall buildings interfering with the line of sight between the user’s satellite dish and the southern sky can interfere with satellite signals.
  Costs of two-way satellite are markedly more expensive than their faster wireline counterparts.
  
• Many satellite Internet providers enforce a fair access policy, whereby they reserve the right to limit certain user activities, such as audio and video streaming and file-sharing, which could take up excessive bandwidth on the transponder.
  

How does satellite broadband work?
Satellite broadband allows for asymmetrical (50-250 kbps upload, 400-500 kbps download) high-speed data transfers from the Internet via satellite. The data signal travels from the computer to the satellite, and then from the satellite to the ISP, where the request is processed. The signal is then sent back to the user in the reverse order. There are two types of satellite broadband service: one-way and two-way.

One-way service requires the user to have an ISP (dial-up, cable modem, or DSL) for the uplink, while the downlink is supported by satellite. The satellite data downlink is just like the usual terrestrial link, except the satellite transmits data to the computer via a satellite dish at the user’s home/office.

The two-way satellite configuration transmits and receives signals directly via the satellite without needing an additional phone line to support the connection for the upstream piece of the broadband service. Also, unlike its one-way counterpart, two-way satellite broadband provides an “always on” connection.

How fast is satellite broadband service?
One-Way and Two-Way
Uplink: 50-128 kbps (average speed: 50kbps)
Downlink: 400-500 kbps, with bursts of 1.5 Mb

How much does satellite broadband typically cost?
One-Way
Hardware and Professional Installation (Dish, modem): $150
Monthly service fees (for 25 hours of service): $30-40/month
Additional ISP fees (dial-up): $20/month

Two-Way
Hardware (satellite dish, modems): $400
Professional Installation (federally mandated): $200-350
Monthly service fees: $60-$80/month

Are there distance limitations?
No. Any user with a clear view of the southern sky can acquire access to satellite broadband. This feature of satellite makes it particularly attractive to rural customers who may not have other options for high-speed access.

Who are the primary providers?
One-way
Hughes Network Systems (DirecWay)

Two-Way
Starband Communications Corporation
Tachyon (commercial systems only; no residential consumer service)
Hughes Network Systems (Pegasus/DirecWay)

Is it used in rural communities now?
Broadband satellite is available in communities throughout Texas, regardless of size or location.

What advances are on the horizon for this technology?
By 2002-03, two companies --- Hughes and Teledesic --- plan to offer on-demand satellite broadband to consumers.

Teledesic’s system will employ a low-earth-orbit (LEO) satellite to offer global coverage and low latency (eliminating half-second delay inherent in GEO satellite technology, as mentioned in “Limitations” section) and fiber-like quality of service. Most users of Teledesic technology will be able to enjoy a two-way connection with 64 Mbps on the downlink and 2 Mbps on the uplink.

Hughes’s Spaceway system will offer universal, on-demand bandwidth with uplink speeds between 16 kbps and 16 Mbps. Operating in the Ka-band spectrum, SPACEWAY will consist of interconnected regional satellite systems providing service to nearly all of the world's population.

Are there any policy/regulatory issues that
might impact delivery of service in rural areas?
Neither federal nor state governments have acted to exert regulatory authority over satellite broadband provision of services.

Where can I learn more?
How Stuff Works
www.howstuffworks.com/satellite.html
I Buy Broadband
www.ibuybroadband.com/ibb2/know-satellite.asp

Modified: 4/19/2002