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Regulation of Global Broadband Satellite Communications April 2012 REGULATORY & MARKET ENVIRONMENT International Telecommunication Union Telecommunication Development Bureau Place des Nations CH-1211 Geneva 20 REGULATION OF Switzerland www.itu.int GLOBAL BROADBAND SATELLITE COMMUNICATIONS Broadband Series APRIL 2012 Printed in Switzerland Telecommunication Development Sector Geneva, 2012 04/2012 Regulation of Global Broadband Satellite Communications April 2012 . This report has been prepared for ITU by Rajesh Mehrotra, Founder and Principal Consultant, Red Books. The report benefited from extensive review and guidance from the team of the Regulatory and Market Environment Division (RME) of the Telecommunication Development Bureau (BDT). ITU wishes to express thanks to John Alden for editing the paper and to the International Telecommunications Satellite Organization (ITSO) for their comments and advice. This report is part of a new series of ITU reports on broadband that are available online and free of charge at the ITU Universe of Broadband portal: www.itu.int/broadband. Please consider the environment before printing this report. ITU 2012 All rights reserved. No part of this publication may be reproduced, by any means whatsoever, without the prior written permission of ITU. Regulation of global broadband satellite communications Table of Contents Page Preface .......................................................................................................................................... iii Foreword ...................................................................................................................................... v 1 Introduction: Satellites for Smart Broadband Solutions ....................................................... 1 1.1 What is broadband and what does satellite broadband mean? ...................................... 1 1.2 Why satellites for broadband delivery? ............................................................................ 2 1.3 Satellite used for broadband communications – advantages and limitations ................. 4 2 Satellite Services and Systems ............................................................................................. 5 2.1 Definition of satellite services and systems for broadband delivery ................................ 5 2.2 Description of satellite orbits ........................................................................................... 6 2.3 Technical characteristics of air interfaces for global broadband satellite systems .......... 7 2.4 Global broadband Internet access by fixed-satellite service systems .............................. 7 2.5 Additional spectrum for mobile satellite service .............................................................. 8 2.6 Satellite system approaches to broadband ...................................................................... 9 3 Overview of Satellite Broadband Services ............................................................................ 11 3.1 Regional approaches to satellite broadband services ...................................................... 12 3.2 Global broadband satellite delivery .................................................................................. 20 4 Understanding Challenges and Opportunities ...................................................................... 21 4.1 Satellite as a complement to terrestrial backbone network – satellite component of the IMT-Advanced ........................................................................................................ 22 4.2 Integrated MSS systems – Use of satellite spectrum to combine terrestrial networks with satellite systems ....................................................................................................... 23 4.3 Interoperability between WiMAX and broadband mobile space networks ..................... 25 4.4 Use of FSS and MSS for warning and relief operations during natural disaster and emergency situations – the Tampere Convention..................................................... 25 5 International Regulation Issues – Use of Spectrum and Orbital Resources ........................... 28 5.1 Regulatory challenges: – virtual satellites and other international coordination issues – possible solutions ............................................................................................................. 30 5.2 Cleaning up of the ITU Master International Frequency Register poses challenges ........ 31 6 Economics of Satellite Systems ............................................................................................ 32 6.1 When does it make economic sense to use satellite systems? ........................................ 32 6.2 Present economic status and outlook for the satellite industry ...................................... 34 i Regulation global broadband satellite communications Page 7 Market Entry: Existing Practices and Overcoming Drawbacks .............................................. 35 7.1 Licensing and access practices in place for satellite systems and earth stations (VSAT) . 35 7.2 Open access: open skies and international gateway liberalization .................................. 37 7.3 Regional harmonization of regulatory network ............................................................... 40 8 Bringing it all Together: Regulatory Best Practices for Industry ............................................ 40 ANNEX 1 ........................................................................................................................................ 42 A.1 Generic description of the network architecture for broadband satellite networks ....... 42 A.2 Brief overview of air interface standards approved by various standardization bodies .. 43 ii Regulation of global broadband satellite communications Preface The past twenty years has been an extraordinary time for the development of information and communication technologies (ICTs) – and with the ‘mobile miracle’ we have brought the benefits of ICTs within reach of virtually all the world’s people. ITU has been in the forefront of this transformational ascent and is today committed to continue to driving positive change in the sector and beyond. It is now time to make the next step, and to ensure that everyone – wherever they live, and whatever their circumstances – has access to the benefits of broadband. This is not just about delivering connectivity for connectivity’s sake – or even about giving people access to the undoubted benefits of social communications. It is about leveraging the power of broadband technologies – and especially mobile technologies – to make the world a better place. In 2010, ITU, in conjunction with UNESCO, launched the Broadband Commission for Digital Development – to encourage governments to implement national broadband plans and to increase access to broadband applications and services. The Commission is co-chaired by President Paul Kagame of Rwanda and Carlos Slim, President of the Carlos Slim Foundation. We have around 60 Broadband Commissioners – all top- level leaders in their field – representing governments, industry, academia and international agencies. At the Broadband Leadership Summit held in October 2011 in Geneva, the Broadband Commission recognized broadband as a critical modern infrastructure contributing to economic growth and set four clear, new targets for making broadband policy universal and for boosting affordability and broadband uptake. Out-of-the-box models that promote competition, innovation and market growth are now needed to make the broadband opportunity reachable for all world citizens. At ITU, the United Nations specialized agency for ICTs and telecommunications, we are committed to playing a leading role in the development of the digital economy through extending the benefits of advances in broadband and embracing the opportunities it unleashes. The three ITU sectors – Radiocommunications, Standardization and Development – are working together to meet these challenges and our collective success will be a key factor in ensuring the provision of equitable broadband access throughout the world. The ITU Broadband Reports are one contribution towards this commitment. Dr. Hamadoun I. Touré Secretary-General, ITU iii Regulation of global broadband satellite communications Foreword Broadband has become a key priority of the 21st Century, and I believe its transformative power as an enabler for economic and social growth makes it an essential tool for empowering people, creating an environment that nurtures the technological and service innovation, and triggering positive change in business processes as well as in society as a whole. Increased adoption and use of broadband in the next decade and beyond will be driven by the extent to which broadband-supported services and applications are not only made available to, but are also relevant and affordable for consumers. And while the benefits of broadband-enabled future are manifest, the broadband revolution has raised up new issues and challenges. In light of these developments, ITU launches a new series of ITU Broadband Reports. The first reports in the series launched in 2012 focus on cutting edge policy, regulatory and economic aspects of broadband. Other related areas and themes will be covered by subsequent reports including market analysis, broadband infrastructure and implementation, and broadband-enabled applications. In addition, a series of case studies will complement the resources already made available by ITU to all its many different types of
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