Internet VSAT access via satellite: Costs

The numbers below are all approximate assumptions. The figures given are not intended to be representative of any particular system. Contact appropriate service providers in your satellite beam coverage areas for quotations.

1. Space segment charges

A satellite costs $300 million to build, launch and operate and has 15 transponders. Over 10 years the cost is then $2 million per annum per transponder.

One transponder is leased and used to provide a high power 34 Mbit/s outlink carrier (hub to remotes). Cost = $2,000,000 per annum
One quarter of another transponder is leased to provide a low power high sensitivity return link capacity (remotes to hub). Cost = $500,000 per annum

In July 2003, in ViaSatellite, SATMEX V at Phoenix Teleport, was advertising C band bandwidth at $3,500 per MHz per month. (equivalent to $1,512,000 per annum for a 36 MHz bandwidth) so the above estimates are not far out but you should be aware of large variations due to power, frequency band, length of lease, pre-emptibility, priority in the rare event of transponder failure etc.

( If you want to buy Ku band satellite transponder capacity from me the price is around $7,000 per MHz per month. This applies to NSS7 Ku band satellite service in Europe, North Africa and Middle East and Ku band operation in the Caribbean areas )

Assume that dedicated capacity assigned to a particular remote = 1 Mbit/s outlink, 250 kbit/s return link.  This remote VSAT might have 100 PCs connected in its local LAN.

Cost per remote (outlink) = $2,000,000 / 34 = $58,823 per annum plus:
Cost per remote (return link) = $500,000 / 34 = $14,705 per annum
So..
1000k/250k link will cost $73,528 per annum (dedicated)
or 100k/25k link will cost $7,353 per annum (dedicated)

Smaller capacities, such as 32 kbit/s each way, will be proportionally lower cost and higher capacities, like 2 Mbit/s outlink and 500 kbit/s return link, will be proportionally higher cost.

Very substantial price reduction per VSAT is possible if the bandwidth is shared, typically with contention ratios of 1:5 to 1:100, giving an average bit rate per VSAT terminals of 10kbit/s down and 2.5kbit/s up, giving prices like:

1000k/250k link will cost $175 per month (shared, contention ratio 1:50)
100k/25k link will cost $87.5 per month (shared, contention ratio 1:5)

You pays your money and you get what you pay for !

( satellite-bandwidth-costs bookmark starts here )

Added new 24th November 2005:

Assume satellite transponder bandwidth costs $5000 per MHz per month.

So, if you rent 100 kHz of bandwidth the monthly charge is $500 per month.  You could use your 100 kHz for two dedicated carriers, one each way.  The first carrier would be the outlink, the second carrier the return link.

Added 30 April 2008:

Global teleports are charging around $6500 - $7000 per month per Mbit/s including termination into the terrestrial internet and assuming QPSK modulation, 3/4rate FEC and operation on a highly reliable Ku Band spot beam satellite.  If you use a large dish obviously you get to to use higher order modulation methods like 8PSK or 16QAM and perhaps higher FEC ratios like 7/8, 0.95 which result is much lower space segment charges. Choosing less popular beams, C band an inclined satellite will also gte the cost down, as will longer lease periods, like 1 or several year lease contracts.

If you have capacity to sell please say in the transponder capacity for sale section of the satellite internet forum.
 

What bit rates are possible?. 

If you use (1/2 rate FEC QPSK) and smallest dish then you may squeeze in is about 80 ksps or 80 kbit/s information rate (note: 2 transmission bits per symbol and 1 information bit per symbol).

If you spend more on a large antenna (say 10 times larger) and buy an advanced modern 16-QAM modem with 0.95 turbo FEC then you may be able to achieve 4 transmission bits per symbol and 3 information bits per symbol.  So you might get a total of 240 kbit/s information rate.

You could use 240 kbit/s to provide 200 kbit/s downlink speed and 40 kbits/s return uplink speed.  This would be good for 1 VoIP phone call (12k each way) plus 28k/188k for web browsing using up to 18 PCs. 

Assume hub costs and internet connection amount to $100 per 100kbit/ per month.

Summary:    200k downlink + 40k uplink = $700 per month

There is a further improvement possible.  Your outlink should be a tiny share of a giant outlink carrier that occupies a whole transponder, operating at saturation (output back off approx 0.5 dB).  Such a carrier is approx twice the power of a multitude of small carriers when the transponder has to be  operated backed off to keep intermodulation noise down.  

So please use high cost bigger dishes, high cost low phase noise LNBs, high cost PLL locked BUCs and high cost modern modems, and everyone will benefit from the lower monthly costs.

If you agree or disagree with this logic please don't keep quiet about it - contribute your views to my forum at http://www.satsig.net/cgi-bin/yabb/YaBB.pl?board=any1
 

2. Remote terminal vsat equipment costs - price list - for sale

Indoor Electronics (indoor RCST box, cables) = $900

Outdoor dish and RF equipment: Dish, plus feed, omt, transmit reject filter, LNB and BUC = $900 (typical)
Prices will vary with dish size and transmit power (0.5, 1, 1.5, 2, 4, 5W) required. 

Delivery, install, taxes etc: $1500 (rough estimate) - makes total = $3300 !

Notes:

Mount: You need a mount pole or non-penetrating (non-pen) mount. A non-pen mount typically has a rectangular frame on which you need to lay many concrete blocks. Is is suitable for a strong flat roof in area without excessive wind speeds.

Polarisation: Some C band systems use circular polarisation in which case you need a C band polariser between the feed horn and the OMT.

Frequency band: Ka, Ku and C band feed parts and LNBs and BUCs are all quite different.

LNB s need to be selected according to frequency sub-band and according to the frequency stability of the local down-converter oscillator e.g. +/- 150 kHz to +/- 500kHz for DRO types or +/- 5 kHz to +/- 25kHz for PLL types.

DRO means Dielectric Resonator Oscillator, which is a free running oscillator depending on the resonant properties of a short cylinder dielectric material. PLL means Phase Locked Loop, this is where transistor circuitry oscillates at the high microwave frequency and by dividing down and comparing with a very stable lower frequency reference oscillator (e.g quartz crystal) a high stability on the microwave frequency is achieved. You need the low stability DRO type to receive high bit rate wide band DVB-S type carriers. You need the PLL type if you are receiving low bit rate low bandwidth SCPC type carriers - otherwise you may never find the carrier ! +/- 500 kHz stability is pretty useless if you are searching for a 10 kHz wide SCPC voice carrier !

Installation: If you are really patient and skilful at setting the elevation angle accurately by calculation and inclinometer (or weight on string) measurement you can find the satellite with the receiver alone. A simple satellite finder signal detector ($75) is the next best thing but does not tell you if you have the right satellite.- If you can afford it a spectrum analysers, e.g. AVcom at $2800, you can easily find the satellite and peak up perfectly and rotate the feed polarisation perfectly which is essential if the uplink cross polar interference performance is to be acceptable.

3. Teleport Hub charges

The cost of the large teleport hub dish, hub rack equipment, site land, buildings, staff, power, internet backbone connection, government licence etc all need to be added and divided over the lifetime of the project. Licensing of the remote terminals (if required) may be either paid centrally by the service provider or by each individual remote user according to the local country tax arrangements.  In the above assumption the cost of the hub, network licence etc is approx the same as the space segment charge, but the ratio will vary a great deal according to use.

Typical hub prices are: 8.1m dia antenna  $200K
Hub equipment racks and control computers:  TDM/TDMA Hub $450K
Remote terminals (wholesale price) 200 VSATs $200K ($1000 each)

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Page 28 Feb 2005.  Updated: 30 April 2007