Satellite option being ignored

January 21st, 2012

Broadband customers in rural areas are missing out on faster download speeds because officials in the UK are not giving enough consideration to satellite options, a satellite hardware manufacturer has claimed. Satellite equipment company Hughes Network Systems says that despite clearly mandated government targets, service providers and local authorities are struggling to reach these goals because they are not giving satellite broadband connectivity a chance.

The government has set a goal that every home should have access to at least 2Mbits/second and have allowed a budget of £530million to make that happen. But the money isn’t going to stretch to fibre optic cabling to every home, and Hughes believe that satellite broadband is the key. Government officials believe that 4G will fill in some of the network, but continuing concern over the availability and data costs means that other technology is essential to ensure that the coverage is 100% effective, particularly in rural areas where the cost of cabling would decimate the limited budget.

Houston, we have a problem…

Satellite providers feel that they’re being ignored, despite offering what they believe can be a cost effective and efficient service to every home, no matter how remote.

Hughes Network System vice president Chris O’Dell admits to being totally frustrated at the lack of consideration the satellite provision is being given.

Chris said

“Ofcom said in August that 14% of UK homes couldn’t get access at 2Mbits/sec and I find that frustrating when, if you look, we can already offer 100% coverage using satellite.”

According to O’Dell, Ka band satellite services can deliver 10 Mbits/sec downloads and 4 Mbits/sec uploads with “no disturbance and no fibre rollout – all you need is line of sight of the sky”.

Some consumer groups have played down the satellite option because of a less than perfect experience with satellite based systems when they came in 10 years ago. The latest generation Ka band based systems however are in a different league and offer blistering performance with no geographical discrimination or waiting for BT.

Satellite price worries unfounded

However, at a time when consumers are particularly focused on how much services like broadband cost, one thing that could scupper the satellite argument is the price. Some consumers believe that satellite is more expensive than ADSL, but this simply isn’t the case anymore.

O’Dell explains

“The [monthly] packages depend on the service providers and virtual network operators, but they are around £25 for the lower ones”.

Europe wide satellite broadband providers like Toowaydirect are now offering FREE hardware and connection on some of their Tooway satellite services, with airtime subscriptions starting at £24.99 inc VAT.

There are also some areas of the UK that are benefiting from subsidies. All of Wales, and some areas of Devon and Somerset currently have grant schemes operating. The hope is that the UK will take a leaf out of Europe’s book and spread that subsidy net a little wider to cover larger areas of rural Britain.

“In Europe, people recognise that satellite is a complimentary technology for rural areas and notspots,” says Chris O’Dell. “Things are happening, but obviously we’d like to see that opened up more in the UK.”

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