Awaiting The Next Application
As new video projects come online and as niche content delivery takes hold in Asia, they require flexibility and the right mix of satellites. "In addition to IP service, we have a large Europe-to-Asia turnaround business via our partner teleport in Israel, along with IP service from the U.S. West Coast to Asia via NSS 5," says Maurice Liu, vice president of Asia-Pacific sales for Netherlands-based New Skies Satellite NV, which established occasional use service in early 2003. "We are working with Tandberg Television and Skystream Networks on MPEG-2 and MPEG-4 content delivery, and we also offered a video turnaround service using the Swe-Dish small terminals for broadcasters to cover news from Middle East to North Asia."
According to Liu, everybody is awaiting the next killer application. Many arrows are pointing to Wireless Local Area Networks (WLANs) via satellite as the prime candidate in this regard.
"Our projects match the expectation that Wi-Fi in Asia is poised to really take off in the near future, especially in Asia. Overall, I am upbeat but not bullish as regional demand is coming back up, although there is still a glut of capacity aimed primarily at India and China," says Liu. "As the domestic players in places like [South] Korea and Malaysia fill up, there is a realization that no new satellites are readily available."
He describes China as working very hard on market access, and he urges patience as the current government gains a new sense of confidence. "It is going to change. I have seen it becoming more open," says Liu. "There is a sense that the very confined market in Japan may soon open up too for foreign players next year. We should see a much [more] relaxed application process underway in Japan."
No Extremely Large Subscriber Bases In Sight--Yet
With such an enormous population, the extremely large potential subscriber bases in Asia must be factored into any aggressive game plan with respect to video, multimedia or IP data. The old set-top box (STB) model only goes so far today as 21st century Asia is poised for vast changes in terms of everything from wireless telecom to digital TV services.
"SK Telecom already has 18 million subscribers out of the total 35 million cell phone users in South Korea today. SK Telecom's plan is to broadcast to mobile devices via S-band feeds direct to subscribers off the MBSAT satellite along with Ku-band feeds to S-band ground stations and repeaters in order to reach subscribers in shadow areas and 'urban canyons,'" says Kill. "It is the consistency and ubiquity of the signal, together with the bandwidth efficiency, that will differentiate SK Telecom's planned multimedia service. After purchasing new models of mobile phones, PDAs or in-vehicle systems, subscribers to the new service will be able to enjoy a range of entertainment and informational services."
Competition Is Keen
No matter where you look, the issues of relatively low disposable incomes and insufficient infrastructure, including distribution grids, seem to be on a collision course. With billions of eager consumers, however, Asia only has to experience a mild economic turnaround to trigger a demand for a wide range of new services and products.
"IP is still the key satellite play in Asia. IPTV, for example, enjoys some of its broadest penetration in Asia, and although today it is a small component of the vast video market, IPTV enjoys lots of support from incumbent telcos all across Asia," Baugh says. "WLAN and Wi-Fi in Asia in particular is a mixed bag. Satellite could be a key enabler, but there are regulatory issues, coverage limitations, and on the risk side, the need for a mass deployment of Wi-Fi enabled devices synchronized to a massive VSAT deployment."
Asia may seem wide open to new strategies and new partnerships, but the level of sophistication present in the region as a whole when it comes to all things telecom often goes underreported. Terrestrial service competitors are making substantial progress too as they scoop up new customers at a brisk pace. Satellite continues to hold the high ground in Asia, and one can only see demand for satellite services growing there throughout the coming years.
Peter J. Brown is Via Satellite's Senior Multimedia & Homeland Security Editor. He lives on Mount Desert Island, ME.