[Satellite News 08-15-11] SES Astra considers its most recent contract agreement with satellite hardware manufacturer Newtec an important step in developing both its Ka- and Ku-band strategy, according to Patrick Biewer, Managing Director of Astra Broadband Services.

   Biewer said the partnership, which will see Newtec provide next-generation Ka-band Sat3Play terminals and related hub infrastructure to SES Astra, would allow the operator to enhance its existing Astra2Connect end-user terminals in Ku-band to enable download capabilities of 10 Mbps. “This deal is of high importance to the company,” Biewer told Satellite News. “The Newtec terminals will be compatible with the current Ku-band signals and aim to allow SES Astra an easy and low-cost migration path from Ku-band to Ka-band once the Ka-band capacity becomes available late next year.”

   The agreement with Newtec represents SES Astra second major Ka-band infrastructure investment of the month. Earlier in August, the operator signed a Ka-band equipment deal with Gilat Satellite Networks to use its Ka-band platform to allow SES to deliver faster Internet and Voice-over-IP services to private households and small businesses across Europe. SES Astra’s Astra2Connect service currently has about 80,000 subscribers.

   The core markets for the service will continue to be France and Germany according to Biewer, who expects the largest subscriber growth to come from these two markets. “If we bring additional Ka-band capacity on the market, we also need to ensure that there is sufficient demand. The use of Ka-band spot beams onboard of our Astra 2F, 2E and 2G spacecraft will allow us to further extend our service offer, while limiting the risks,” he said. “We will use the additional Ka-band capacity in markets where we see strong demand for satellite broadband services and we will continue to use Ku-band capacity in markets with less demand. This flexible approach will allow us to allocate our resources efficiently, while offering satellite Internet services at speeds comparable to standard terrestrial and terrestrial wireless networks such as DSL, cable, and LTE technologies.”

   While SES Astra is beginning to increase its Ka-band potential by integrating additional spot beams onto its fleet of satellites, the operator does not want to move exclusively in one direction. Biewer said the operator is developing its satellite broadband service offerings in markets that make sense from a commercial point of view. With SES’ competitor Eutelsat recently launching commercial services on its Ka-sat satellite and U.K. operator Avanti Communications targeting Europe with its Hylas-1 spacecraft, SES Astra is taking a more cautious approach to Ka-band.

   “At the end of the day and from an end-user perspective, it’s the delivered user-experience itself that counts,” said Biewer. “The particular technology that is used to enable the service is only of interest and relevance from the operator’s point of view. We are convinced that we have launched a very compelling product, offering attractive packages with download and volume tariffs that are transparent and available at favorable rates, and hardware that is affordable and extremely easy to install.”

   Newtec CEO Serge Van Herck believes that Ka-band has almost become a necessity for satellite players to remain competitive in the long-term. “Many professional satellite service providers in our industry have reached the point where it is challenging to stay profitable and competitive against fiber or other terrestrial technologies in their markets,” Van Herck told Satellite News. “Ka-band capacity is both cheaper and much more abundant; it is being seen as a new opportunity by many satellite services providers. Additional services and applications made possible by the extra capacity will also provide new revenue streams.”

   Services based on Ka-band have made a significant impact on several operators and their business models as a fair amount of Ka-band satellites were launched to rectify capacity shortfalls.

   “The increasing demand for more Ku- and C-band bandwidth in dense population areas for additional DTH channels, HD and 3-D TV, combined with the increasing bandwidth consumption for satellite-based broadband, requires the availability of Ka-band. However, in less densely populated areas in many parts of the world and also in some climatic conditions, Ku-band will continue to be used for satellite based broadband,” Van Herck said.

   Ka-band has already been deployed for broadband access and TV distribution in the United States, where the appropriate technologies exist to support other types of applications but have not yet been deployed. Van Herck said this is about to change, as multi-service platforms become a reality at IBC this year. “The additional applications will rapidly add value to Ka-band satellite networks and provide a way of dramatically increasing the return on investment for satellite and service operators, by speeding up the fill rate of Ka-band satellites,” he said, “Additional services will generate extra service revenues and provide new offerings to millions of households and businesses, which will help the satellite industry to compete with terrestrial high-speed broadband services.”