Expand Your Mobile Coverage Even Further – Solutions For

WHITE PAPER

Expand Your Mobile Coverage Even Further Cost-effective Space-based Solutions for Cellular Backhaul

Published by Introduction Internet connectivity delivers significant socioeconomic benefits to people and communities worldwide. The internet improves quality of life by connecting people to education resources, healthcare services, distant family members, employment opportunities, banking services as well as news and information that fosters engaged citizens. Indeed, it has become so important to society that the United Nations now considers internet access a basic human right.

Connectivity also drives economic growth. According to economic modelling by the International Telecommunication Union (ITU), a 10 percent increase in fixed broadband penetration globally generates 0.8 percent higher GDP while a 10 percent increase in mobile broadband penetration yields a 1.5 percent increase in GDP. There is an even greater impact in developing countries. In Africa, a 10 percent increase in mobile broadband penetration yields 2.5 percent more GDP per capita, according to the ITU.

Introducing connectivity directly and indirectly creates skilled jobs and enables businesses to trade and communicate more efficiently. The internet stimulates economic activity by providing a networked environment in which businesses can thrive and entrepreneurs can start new enterprises.

Today, only half of the world’s population is connected to the internet and enriched by these socioeconomic benefits. There are still 4 billion people who are not connected, of which 1 billion live in areas where there is no mobile broadband coverage and 3 billion have access to 3G or 4G networks but do not subscribe to mobile internet services, according to the GSMA.

The largest proportion of unconnected people that are not covered by infrastructure are in Sub-Saharan Africa (40%), according to the GSMA. But lack of Space-based connectivity affects every region, making it a global problem for the communications industry, national Communications: governments and society.

The use of non- For mobile network operators (MNOs) and internet terrestrial platforms service providers (ISPs), closing this connectivity gap represents an opportunity to achieve their (i.e., geostationary business goals while also helping to deliver profound satellites) integrated social and economic benefits to the people and with a fiber-based communities they serve. terrestrial backbone This white paper explores how space-based communications has become an essential tool for to relay information economically and efficiently overcoming connectivity challenges and offers recommendations for how mobile operators can bring more people online to grow their businesses today and in the future.

2 WHITE PAPER Creating New Opportunities for Mobile Operators

Whether operating in Asia, North America or Sub-Saharan Africa, MNOs generally have common business objectives and face similar challenges with connecting people in rural and hard-to-reach areas. Just how operators pursue business goals will vary depending on local market conditions. In developing markets, revenue growth is driven by new subscriptions and data services. In saturated markets, where subscriber growth has slowed, operators compete to retain existing subscribers while also looking to new areas, such as Internet of Things (IoT) and content services, to grow revenues.

In the next seven years, 710 voice and data sales is critical to Protect Existing Markets million people are expected to being competitive and improving • Improve customer satisfaction: subscribe to mobile services for stock performance. When current subscribers are the first time, according to GSMA unable to access voice or data Intelligence. Of that number, half • Grow subscriber base: Making services everywhere, customer will come from the Asia/Pacific voice and data service available satisfaction scores go down. region and a quarter will come in more areas results in new from Sub-Saharan Africa. subscriptions, including IoT • Reduce customer churn: connections. Poor coverage, reliability and Expanding coverage to the world’s availability are major drivers of unconnected communities and • Generate new revenue potential: customer churn. geographic areas, as well as With more subscriptions, there ensuring reliable coverage for is greater potential for new Preserve Future Markets revenue and profitability over existing subscribers wherever • Gain first-mover advantage: time. they live, work and play, creates Being first to provide voice and a tremendous opportunity for data services in unserved areas • Promote corporate brand: MNOs to accomplish their business with future growth potential The ability to quickly connect goals, in the following ways: helps to gain a competitive ultra-remote communities can advantage. Reach New Markets be included in a company’s corporate social responsibility • Increase market share: Gaining a • Preserve unused spectrum: (CSR) initiatives. greater portion of the industry’s Areas with unused spectrum is costly and licenses can expire.

Expand Your Mobile Coverage Even Further: Cost-effective Space-based Solutions for Cellular Backhaul 3 Four Challenges to Connecting More People

The business opportunity is clear, but there are many challenges to overcome. The GSMA identifies four main reasons why the connectivity gap persists, and 4 billion people remain offline, with 1 billion of them living in areas without access to 3G or 4G. Only some of the factors are within an operator’s control, but they all must be addressed if there is to be a truly connected world.

• Infrastructure: People live • Affordability: Service costs areas, especially in developing in areas where internet (including device prices, countries, potential subscribers infrastructure is not available, subscription fees and service do not have the knowledge or including infrastructure taxes) are higher than what skills needed to use the internet. providing access to mobile many people can afford, which broadband, which is often the keeps people from connecting, • Relevant content and services: only way people in these areas including those who live in Applications and content are can access the internet. Other areas with mobile broadband not always available in local infrastructure challenges include coverage. languages or not seen as useful lack of power grid and restricted to their daily lives, so people find access in some places due to • Consumer readiness: Due no value in subscribing to mobile poor roads and bridges. to poor access to education broadband services. in many rural and remote

4 WHITE PAPER Infrastructure challenges

For the 1 billion people who are high CAPEX and OPEX costs High Costs: Most of the cost not covered by mobile networks, of installing and maintaining of rural deployments is in the the biggest barriers for MNOs are infrastructure to support remote network construction and physical related to infrastructure challenges cell sites. A quarter of responses infrastructure expenses, including – namely, the cost, complexity and reveal another major hurdle to be the backhaul connections between return on investment (ROI) of low and/or slow ROI, followed by the cell sites and the core rolling out mobile networks. It’s lack of supporting infrastructure network. Traditional fiber backhaul important to understand that and difficult geography. (including conduit materials) can connectivity gaps exist mostly in cost on average $115,000 for non-urban areas where it can be When asked about using satellite- just 10 kilometers, based on U.S. difficult and cost-prohibitive to based backhaul to expand data collected by BroadbandUSA. deploy infrastructure. According to coverage into unserved and Digging the trenches for fiber the ITU, 60% of the unconnected underserved areas, nearly half of costs roughly $13,000 for 10 population live in rural areas. the responses from stakeholders kilometers. These costs increase indicate cost of satellite as a dramatically with more cell sites, In a recent Intelsat poll of mobile prohibiting factor, with the longer distances and difficult industry stakeholders, a third remaining half of responses shared terrain. And these estimates don’t of responses reveal the biggest across lack of familiarity and/or even include other necessary challenge to building mobile expertise in satellite solutions and costs, such as construction coverage in rural areas is the perceptions of satellite being slow. equipment, labor and permits.

of unconnected people 60% live in rural areas.

Expand Your Mobile Coverage Even Further: Cost-effective Space-based Solutions for Cellular Backhaul 5 For microwave backhaul, just one areas, many mobile operators rivers and valleys. Traditional fiber site can cost on average $121,000 still view the use of satellite for and microwave backhaul can take (which includes the cost of power cellular backhaul as too costly. As anywhere from many months to generator and tower), according a result, mass geographic areas over a year to deploy in these to BroadbandUSA. And because where people live, work and play areas, which delays ROI and time most rural and remote areas do remain without access to mobile to market. not have existing infrastructure broadband coverage. for placement of microwave Complexity is also considered a relays, entire sites will need to be Slow ROI: Compared to densely challenge for satellite backhaul constructed where needed. Also, populated urban areas in in rural and remote areas. This microwave links require line-of- developed countries, ROI is is largely due to many mobile site and signals fade between 48 slower and lower in rural and operators today lacking familiarity kilometers and 64 kilometers, remote areas due to the large and/or in-house expertise to which means many sites will be investment to build out mobile support satellite solutions, as needed to cover longer distances coverage in these areas and a indicated by 26% of the responses or mountainous, uneven terrain. combination of factors including in Intelsat’s poll. smaller populations, lower average In extremely rural areas, there may revenue per user (ARPU) and Performance: In addition to the be additional costs for building sometimes high poverty rates economic challenges associated electricity infrastructure. After that prevent people from buying with building out infrastructure the initial deployment of new services. to support mobile coverage in sites and buried fiber cabling, on- rural and remote areas, it is also going maintenance and technical Complexity: Remote network important that the coverage meets support is also costly in remote deployments are inherently quality of service (QoS) and quality locations. complex. Difficult projects are of experience (QoE) requirements. complicated by shortages of According to Intelsat’s poll, mobile Beyond the costs associated workforce skills as well as the operators perceive satellite as not with fiber or microwave backhaul challenges of extreme, natural supporting high-speed broadband, deployments in rural and remote topographies such as mountains, specifically 4G LTE.

6 WHITE PAPER The Case for Space-based Solutions

Today’s spaced-based technologies help mobile operators address the challenges they face in cost-effectively connecting people and places anywhere. By including technological advances and other benefits of satellite-based backhaul solutions in their network planning, operators can overcome the cost, complexity and ROI barriers that have historically hindered reliable, quality coverage everywhere, even in hard-to-reach rural and remote areas.

Ubiquitous Coverage: Non- reduce the cost per bit delivered, Dynamic Bandwidth Allocation: terrestrial geo-stationary regardless of spectrum choice. Bandwidth is dynamically allocated platforms provide ubiquitous via statistical multiplexing across coverage to 99% of the globe’s Advanced Modem Technology: an entire network of cell sites populated areas. There are no Today’s satellite modems are – whether 10, 100, or 1000s distance, topography or line-of- high-performing, reliable and -- based on traffic demand per site constraints, which are typical bandwidth-efficient. With site and quality of service (QoS) of fiber and microwave backhaul. advanced packet processing requirements. This minimizes Also, satellites can rapidly capabilities for maximizing OPEX by making the most efficient provide backhaul for an entire throughput and optimizing latency, use of a single pool of capacity. network of cell sites, providing MNOs can ensure optimal quality network resiliency in existing of experience for their users. Managed Services: MNOs coverage areas while also enabling Today’s modems also support often lack expertise in satellite expansion into areas where fiber VoLTE deployments. technology, but the availability or microwave options are cost- of managed services for satellite prohibitive or not feasible. Smaller Antennas: Advances in backhaul removes this limitation satellite technology means smaller and provides an easier way High-Throughput Satellites antennas known as Very Small to incorporate space-based (HTS): Next-generation HTS Aperture Terminals (VSATs) can backhaul solutions. Services systems deliver up to 10 times be used today for space-based include network planning, more throughput using the same cellular backhaul instead of the design, management and 24- amount of frequency on orbit large dishes that have been used hour technical support. Software compared to traditional fixed- in the past. VSAT dishes are less and hardware engineering and satellite service (FSS). These than 3.8 meters in diameter, installation services are also satellites take advantage of which means lower cost, quicker available to minimize complexity. frequency reuse and multiple spot installation and less space required beams to increase throughput and at the site.

Expand Your Mobile Coverage Even Further: Cost-effective Space-based Solutions for Cellular Backhaul 7 How Space-based Solutions Enable MNOs to Reach Further and Achieve More By incorporating today’s space-based cellular backhaul solutions into their network planning strategy, mobile operators can quickly and cost-effectively connect more people – and things – in more places, helping them achieve their business goals and objectives.

Business Goal With Space-based Solutions

Increase market Become an industry leader and gain a competitive edge in the market share by offering voice and data services across more geographic areas

Grow subscriber Add new subscribers to your existing base, including IoT connections, Reach New Markets base by providing more mobile broadband coverage everywhere Cost-effectively expand coverage beyond the limits Generate new Create new opportunities for revenue growth by offering voice and of traditional backhaul revenue potential data services wherever people live, work and play approaches Leverage low-cost space-based turnkey solutions to bring Promote corporate connectivity to ultra-remote, often impoverished communities as brand part of corporate social responsibility initiatives

Improve customer Build resiliency into existing networks to ensure subscribers always Protect Existing Markets satisfaction have a reliable, quality connected experience Leverage space-based cellular backhaul solutions Reduce customer Keep customers from churning by providing reliable, high-performing for network resiliency churn connectivity in existing coverage areas when outages occur

Be first to enter unserved markets with voice and data services, Gain first-mover Preserve Future Markets especially hard-to-reach areas where fiber or microwave backhaul advantage Quickly deploy temporary can take months or longer to deploy or permanent cell sites backhauled over satellite Preserve unused Meet regulatory requirements and take advantage of unused spectrum spectrum in uncovered areas by quickly deploying remote cell sites

Reach New Markets

Cost-eectively expanding coverage beyond the limits of traditional Protect Existing Markets backhaul approaches enables mobile operators to: Leveraging space-based cellular backhaul solutions for network Preserve Future Markets Increase market share and resiliency enables mobile operators to: remain competitive Quickly deploying temporary or Improve customer satisfaction by Grow new subscriptions including permanent cell sites backhauled over ensuring reliable connectivity to satellite enables mobile operators to: IoT connections subscribers everywhere they go. Gain ﬁrst-mover advantage by being Generate new revenue potential from Reduce customer churn by making future growth ﬁrst to provide voice and data services reliable, quality coverage available to in rural and remote areas. Promote the corporate brand through subscribers everywhere they live, work CSR initiatives and play, especially when outages Preserve unused spectrum in areas occur. planned for future coverage using small-cell turnkey solutions.

8 WHITE PAPER Recommendations for Closing the Connectivity Gap

Of the 4 billion people not connected to the internet worldwide, only 1 billion are not covered by mobile networks and can’t connect. The previous section demonstrates how space-based backhaul managed services help mobile operators overcome infrastructure challenges, particularly in remote regions. But most of the world’s unconnected (the remaining 3 billion people) don’t connect because services are unaffordable, content is not relevant, or they lack the knowledge or skills to access the internet. That means mobile operators are only part of the solution.

Closing the connectivity gap non-governmental organizations the country’s Communications worldwide will require a coordinated (NGOs) and regulators. By doing Commission. effort among many different types so, operators can help resolve of organizations. There is strong issues that are beyond their • Be Creative with Business Models. momentum among international control, such as creating relevant It’s clear that traditional groups to find new solutions for applications in local languages deployment models will not fully bringing more people online in or setting up education centers eradicate the connectivity gap. recognition of the huge impact the where people can learn how to use MNOs should look for innovative internet has on improving living mobile devices. Mobile operators business models, wholesale and standards globally. can also inform regulators on how revenue-sharing. excessive taxation of internet For example, the United Nations’ services discourages take-up. For example, Africa Mobile Broadband Commission for Networks is a mobile infrastructure Sustainable Development’s latest A recent rural deployment in provider that builds coverage to report calls for new collaborative Uganda shows the effectiveness unserved areas and operates on strategies to deliver “meaningful of multiple parties working a revenue-sharing model with universal connectivity,” which is together (see sidebar). The mobile operators. It has so far defined as broadband access that project introduced 3G to two deployed 500 remote sites to is not only “available, accessible, communities and involved mobile bring mobile coverage to 1.7 relevant and affordable, but also that operator MTN, Intelsat, ITSO and million people for the first time. is safe, trusted, user-empowering and leads to positive impact.” Closing the Connectivity Gap in Uganda Another example is the World Bank In Uganda, the rural communities of Bufundi in Rubanda and Group’s support for the African Kibuku in Ntoroko did not have access to mobile broadband. Union’s digital “moonshot” to digitally Intelsat partnered with the International Telecommunications connect every African individual, Satellite Organization (ITSO), mobile operator MTN and Uganda’s business and government by 2030. Communications Commission to deploy a satellite-enabled, solar- powered 3G small cell network, which brought connectivity to the The following recommendations communities for the first time. aim to help mobile operators capitalize on the opportunity to The government of Uganda has a national broadband goal to cover close the connectivity gap: 100% of the country’s rural areas by 2020 and deliver minimum speeds of 3 Mbps. • Work Together with Everyone. The pilot project demonstrated the ease of deploying satellite MNOs should seek partnerships solutions as well as the importance of private/public partnerships and liaise with multi-national in achieving broadband access goals. corporations, governments,

Expand Your Mobile Coverage Even Further: Cost-effective Space-based Solutions for Cellular Backhaul 9 Conclusion Roughly half the world’s population is not connected to the internet and deprived of the socioeconomic benefits generated by digital economies. This connectivity gap represents an opportunity for mobile network operators to not only improve the lives of people in the communities they serve but also meet their business objectives. Closing the connectivity gap enables MNOs to achieve commonly held goals of expanding into new markets, protecting existing markets and preserving future markets. Until recently, expanding mobile broadband coverage to rural and remote, unserved areas was always hindered by the complexity and high cost of building out infrastructure as well as slow or low ROI. But space-based solutions have emerged that overcome these infrastructure challenges. By incorporating space-based communications into network planning, MNOs can quickly and cost-effectively connect more people in more places.

10 WHITE PAPER Expand Your Mobile Coverage Even Further: Cost-effective Space-based Solutions for Cellular Backhaul 11 As the foundational architects of satellite technology, Produced by the mobile industry for the mobile industry, Intelsat operates the largest, most advanced satellite fleet Mobile World Live is the leading multimedia resource that and connectivity infrastructure in the world. We apply keeps mobile professionals on top of the news and issues our unparalleled expertise and global scale to reliably and shaping the market. It offers daily breaking news from seamlessly connect people, devices and networks in even around the globe. Exclusive video interviews with business the most challenging and remote locations. Transformation leaders and event reports provide comprehensive insight happens when businesses, governments and communities into the latest developments and key issues. All enhanced build a ubiquitous connected future through Intelsat’s next- by incisive analysis from our team of expert commentators. generation global network and simplified managed services. Our responsive website design ensures the best reading experience on any device so readers can keep up-to-date At Intelsat, we turn possibilities into reality. Imagine Here, wherever they are. with us, at Intelsat.com. We also publish five regular eNewsletters to keep the To learn more about how mobile operators can mobile industry up-to-speed: The Mobile World Live Daily, expand their network planning strategy to reach plus weekly newsletters on Mobile Apps, Asia, Mobile Devices and Mobile Money. new markets, protect existing markets, and preserve future markets, visit What’s more, Mobile World Live produces webinars, the www.Intelsat.com/Connect-More. Show Daily publications for all GSMA events and Mobile World Live TV – the award-winning broadcast service of Mobile World Congress and exclusive home to all GSMA event keynote presentations.

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