Should I dump my VSAT?
Monday, October 25th, 2010VSAT and the future of IP connectivity in Nigeria
Are you still using VSAT? Do you still sell VSAT and services? Do you intend to train in VSAT installation and support? Do you still use the typewriter? Do you still use the electronic organizer? Do you still use an alarm clock? Do you have a VCR? Do you still use a 4-port hub? Do you still use a Pentium I computer? Do you still use a CRT? Is your TV strictly black and white? Do you still send love letters through the Post Office? If you do any of these then you might as well return to the dinosaurs.
VSAT (very small aperture terminal), like typewriters are already out of fashion and should only be used as a last resort. Typewriters are still very useful in villages where there is no access to ICT accessories such as printers, printer inks, operators, technicians and adequate power supply. They can however be used as backup, and occasionally. They should never be used as a primary option wherever possible. There are several advantages of using VSAT, one of which includes its ability to function in very remote areas and crazy topologies. VSATs can be used in the desert, on the ocean, on islands, etc where no other means of communication can reach. Mobile auto-locking VSATs can even be used in moving vehicles, boats, reporting vans etc.
VSAT is however very expensive, has high “double-hop” latency (usually above 600ms and not excellent for Voice), problematic and often difficult to maintain. Ku-Band has also been known to have constant downtime in very humid conditions and total downtime when it rains signal strength and transmit usually go down. C-band though more reliable is several times costlier, more expensive to maintain, bulky and also has its weather issues. Apparently VSAT has low second hand value and the CPEs are usually locked to a provider, hence zero resale value. Installation and transportation of the equipment is also very expensive, sometimes gulping over 150,000 naira!
What should you do?
There are several alternatives to VSAT connectivity.
Fiber. There is already a huge fiber network across the country and sales of Fractional E1 has blossomed. You can easily get a 2mb link between Lagos and Abuja. Glo for example has a fiber ring that covers the entire country. MTN, Multilinks, Phase3 etc also have links in many parts of the country. Fiber is known for low latency and high reliability and is a must for mission-critical applications including voice, video, synchronous replication, disaster recovery and HQ-Branch backhauling. Fiber bandwidth is available for both internet and MPN. Many people still dream of FTH (DTH) features in the future bringing IPTV, gaming and VoIP to video subscribers at home. 21st Century is known to be an ambassador of this.
Wimax. The Wimax/LTE (4G) debate has eaten up so much that many people are already confused. I would say leave LTE to the Mobile Providers and leave Wimax Access to the takers. Wimax is already working well in Nigeria and most parts of Lagos have wimax coverage from IPNX, Swift Broadband, etc. There is really no point in using VSAT for internet connectivity withing Lagos or any urban area in Nigeria that has WiMax (or wifi or 3G/HSDPA). Wimax has low latency as well and the CPE costs a few peanuts compared with the VSAT modems. Wimax is expected to drive the IPTV market as well with in-house decoders providing more than just tripple play but adding a wi-fi device for internet connectivity to complement the suite. Note that most of the Wireless Interoperability for MAX are licensed.
Microwave Radio. Point-to-point, point-to-multipoint, whatever it is, MWRs are great when they are up and running. Providing very low latency and high bandwidth, many firms already have radios as their primary medium of inter-connectivity. Many ISPs also use these for personal networks. Radios can be very expensive and costly but if properly managed can be the best alternative and needless to say, they are several thousand times better (sometimes cheaper) than VSAT and you do not need to pay recurrent bandwidth costs to anyone. Think about SAF, SAIE, NEC, NERA, Proxim, Radwin, Alvarion, etc.
EVDO/3G/HSDPA. This section of users have virtually forgotten the days of VSAT. Mobile data cards with always-on connectivity, no maintenance, and flexible packages, I would say 50% of internet users (in lagos) today use data cards and I forsee more people abandoning other media for these. These cards cannot provide the mega bandwidths that others can but they can at least provide as much as most VSATs are capable of, sometimes up to 7.2Mbps. 3G has recently been used in MPNs (Managed Private Networks) as backup to fiber instead of VSAT.
Wi-fi (Hotspots). 802.11 b/g/n is one access technology that won’t go away for a long time. Capable of delivering access speeds of over 100Mbps and readily available on laptops and smartphones, most users do not need to buy a costly CPE to gain access, just switch your wi-fi on! Any provider seeking to gain large market share would spreak a wi-fi blanket across town/school and provide a reasonable billing platform to complement it. Usually, wi-fi depends on other robust media in the backend which might include a combination of fiber, radio, wimax or even VSAT. Wi-fi though operates like a hub and cannot provide dedicated access hence expect about 18 connections on a typical Access Point. Cisco (Linksys), Wavion, Xirrus, Belkin, Netgear, Brocade and Proxim are top manufacturers in this space.
LTE (Long Term Evolution). I intend to take this discussion elsewhere. LTE is practically unavailable in Nigeria today but that is not to say that experiments are not going on underground. LTE will blow many of the above options away as it provides plenty of 100mbps/60mbps access via mobile connectivity. The implication is that Glo, MTN, Etisalat, Zain, etc will give many ISPs a run for their money and whoever gets there first takes a large chunk of the market share. With Glo having completed its Glo1 project, there is a huge probability that they might be the first to sell LTE. Expect LTE compatible devices to ship by December.
Blackberry. This is a complete Joke please, BB is not a connectivity medium. BB can work with the access technologies including 3G, LTE, wi-fi, you addict!
If you are still using VSAT (depending on what you are still using it for), see if you can trade it in and buy a newer solution. You will be told 1001 reasons why you should not dump your dish but it is entirely your call to accept the carrot and the stick. I am not asking you to dump your dish immediately (especially if you have connected your typewriter to it), I am only trying to say that I will be laughing at you when the day comes and of course, the last laugh is the sweetest.
I wrote this in 20 minutes and I am sure I probably missed a couple of details. Please forgive my errors as I have been known to be highly error-prone. Be kind enough to drop a comment and we will laugh over it. Thank you comments are not allowed please
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Christopher Odutola is a presales specialist with 10 years + of vast ICT experience and specializes in packaging business plans, proposals, business cases, industry analysis/research, market surveys; conducting ICT surveys, evaluating tenders/bids and new solutions.
