Bank praises Eutelsat’s broadband plan

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Bank praises Eutelsat’s broadband plan

Bankers Morgan Stanley said it is raising its forecast revenues because of Eutelsat’s giant new satellite order. Eutelsat has ordered a massive Ka-Band satellite (KA-Sat) to tap into what it sees as growing demand for broadband-by-satellite over Europe. The bank rhetorically asks whether this new satellite now makes broadband by satellite a reality, and says: “While there have been previous abortive attempts to commercialise broadband via satellite in the consumer market, the difference now is that CPE costs are far lower, and service prices comparable to alternative broadband offers. Both Eutelsat and SES are now attacking this market with new vigour. Eutelsat's commitment to a dedicated Ka band satellite (rather than a Ku/Ka hybrid) marks the company out as the more aggressive player in this space, we think.”

Ka-Sat is to be Eutelsat’s (and in fact greater Europe’s) first all Ku-band satellite, with 80 spot beams ready to tap into what Eutelsat clearly believe is a growing demand for two-way satellite-based broad(ish) band transmission. EADS Astrium will build the bird in readiness for a 2010 launch.

The €350m craft is a major step forward in satellite-delivered Ka-band services. Key to the deal – and a valuable addition to the craft’s assets – is Eutelsat’s link with Viasat (as well as Loral and Telesat) to “work together” to expand broadband internet services via satellite. Viasat has itself ordered a very similar satellite from Space Systems/Loral for the building of Viasat-1, which is said to be the world’s highest capacity broadband satellite. Viasat-1, however, matches Ka-Sat in weight (at 5.8 tonnes at launch), and has very similar multi-feed antennas for a 15-year design life on both satellites.

Viasat is already working with Eutelsat in its existing TooWay venture using Ka-band capacity on Hot Bird 6. This new satellite will be co-located with the other primary Eutelsat assets at its ‘Hot Bird’ spot at 13 deg East. Also key is the – at last – increased availability of Docsis-standard terminals which Eutelsat’s CEO Giuliano Berretta says will be matched by newly-developed LNBs suitable for extended frequencies into the Ka-band range, but also good for reception from Eutelsat’s ‘Hot Bird’ prime real estate. With home terminal units and LNBs coming onto the market, and at large-production volumes, prices in real terms can only come down.

Eutelsat is targeting an estimated 15m European homes that have little or no prospect of tapping into fibre or DSL-based broadband services. Eutelsat is sticking with its current commercial model, and will only be wholesaling capacity to specialists able to link up with a planned 8-gateway system.

Eutelsat’s move also represents the first significant investment in Ka-band over Europe since the catastrophic loss of SES Astra’s massive 1K craft in November 2002. KA-Sat is planned to be on station in 2010, and ahead of the Viasat launch which follows in early 2011.

Regards Satdude.
 
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