With the advent of High Throughput Satellite (HTS) services within Africa’s connected business environment, the question of what happens with the remainder of the satellite supply value has come to the fore.
The development of HTS services is slowly but surely entering the African landscape and means that satellite access servicing to the end-user is nearing the 10Mbps, 15GB at $50/month service points, explains Dr Dawie de Wet, CEO, Q-KON.
At these price and performance points we would expect an upsurge in subscriber growth and Africa to mirror North American levels of +1,000,000 subscriber terminals. Surely the fast geographical landscapes of Africa, linked to the lack of extensive ADSL networks and the limitations of 3G services, create the perfect opportunity for large-scale satellite deployments?
Satellite services as a technology can certainly meet the future user demands and contribute significantly to close the digital divide. But what is less certain, and not often debated, is whether the remainder of the value channel will be able to rise to the occasion.
Challenges within the greater value chain and the requirements to ensure large-scale deployments of satellite services warrants further discussion.
Often considered more of a necessary evil than a strategic differentiator, satellite services do not form part of the mainstream focus of leading telcos. This represents both an opportunity and a challenge. The opportunity is for niche and focussed Service Providers to drive the delivery of satellite services and to do so in a way that compliments the services from the major telcos.
However, being niche Service Providers, the capital and investment required to drive large-scale satellite deployments is often not available. What will be needed is the development of medium tier service providers who can drive the next phase of HTS deployments, these will be niche provider who can indeed amass the resources required for HTS service while being small enough to appreciate the returns offered.
In the South Africa and Africa context Service Providers such as Q-KON, iBurst and Godwana could be ideally placed to leverage the moment.
Multimedia Service Bundles
With IP access being the core delivery of HTS services it is logical to expect that subscribers will want an elegant service offering which combines TV, broadband and telephony in simple service bundles.
From a technical product definition point of view this is certainly not a challenge at all. However, from an industry, regulatory and content rights position this leads to far more questions than answers.
With the Africa regulatory landscape still very much split between telecommunication and broadcast services – will this means that ISP’s will now be licensed to be national broadcasters or will broadcasters be licensed to be ISP’s?
This doesn’t even start to address the matter of regional licenses for Netflix and other over-the-top providers. Since we want to focus on solutions and not problems, I maintain that it will be the new medium tier Operators that will be flexible and dynamic enough to address this issue. It will be these innovative, and by definition niche technology operators, that can create the structures needed to deliver HTS in Africa.
The HTS successes witnessed in the Americas by Wildblue, DISHtv and others are sound of what can be done albeit done by single organisations which taken up the responsibilities of the completed end-to-end value chain and has delivered on each element.
Africa might not be fortunate to have such giants with the appetite to accept the end-to-end responsibility in a niche technology domain such as high-throughput satellites. For Africa we will need creative industry models which will collectively develop the value chain.