Benjamin Franklin once said, in this world nothing is certain but death and taxes. If he were alive today, he may have added that nothing is certain but death, taxes and the astounding growth of Internet data traffic. For proof, consider trans-Atlantic traffic totals between Europe and North America. According to Telegeography Research, trans-Atlantic Internet traffic consumed 388 Gbs of bandwidth in 2003, up 67 percent compared to 2002. Based on this growth, Telegeography expects trans-Atlantic Internet traffic to hit 648 Gbs in 2004, 1,082 Gbs in 2005 and 1,806 Gbs in 2006. Meanwhile, this Washington, DC-based consultant firm also predicts that Trans-Pacific Internet traffic will grow from its 2003 total of 92 Gbs to 153 Gbs in 2004, 256 Gbs in 2005 and 427 Gbs in 2006.
For the satellite industry, IP traffic growth offers a tremendous range of new sales opportunities.
The obvious ones are Internet backbone service, satellite broadband, "e-mail anywhere" for business and consumers, and specialized IP hardware. Providing cost-effective IP transmissions via satellite, however, also creates niches for products that optimize network performance, minimize bandwidth demand and manage content delivery.
Internet Backbone
Today, the vast majority of popular Web sites are located in the United States and Europe. As a result, Internet Service Providers (ISPs) who want to provide solid solutions to clients must link to these sites, even if the clients need worldwide connectivity. The best way to do this is through high bandwidth Internet backbone channels. These backbones connect ISPs directly to Europe and North America, ensuring fast and reliable access to the World Wide Web.
Not surprisingly, satellite service providers are eagerly pursuing the Internet backbone access business model. Intelsat Ltd., for example, through its GlobalConnex Internet Trunking Service, (ITS) offers end-to-end solutions throughout its satellite fleet. "ITS is developed to provide direct, high-speed U.S. and European Internet backbone connectivity to small- and mid-sized Internet Service Providers (ISPs), operating in remote locations throughout the world where telecommunications infrastructure is minimal or even nonexistent," says Intelsat Ltd. COO Ramu Potarazu.
GlobalConnex ITS comes in three service levels. Shared User Group offers downloads at speeds from 128 kbs to 2 Mbs, and uploads from 64 to 512 kbs. It aims at multiple locations that belong to a single organization. Internet trunking Basic provides downloads at speeds ranging from 128 kbs to 8 Mbs, and uplinks from 64 kbs to 2 Mbs. It is a service aimed at Tier 2/3 ISPs. Dedicated Internet Trunking helps Tier 1 ISPs connect to the U.S./European backbone in force, with its 4-45 Mbs download and 1-8 Mbs upload speeds.
As one of the global suppliers of multimedia transmissions, BT Broadcast Services (BTBS) also offers a fully managed, integrated, global digital network that includes a terrestrial network that seamlessly connect clients worldwide to the Internet. BT's global fiber network gives customers digital connectivity between Paris, New York, Los Angeles, Washington, DC, and London, enabling uplink and downlink of content to and from almost any location worldwide.
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