Liberalized regulations and uniform technologies will be key to spreading deployment of satellite broadband services, particularly in developing countries, according to recommendations offered from the Global Broadband Satellite Infrastructure (GBSI) Initiative.

The GBSI is an initiative initially proposed by Ahmed Toumi, director general and CEO of the International Telecommunications Satellite Organization. In December 2003 at a meeting of the World Summit on the Information Society (WSIS), the group’s goal was to create a harmonized technical and regulatory environment that promotes the emergence of a mass market for satellite broadband services.

Companies that are members of GBSI include Asiasat, Alcatel Space, Arabsat, EADS Astrium, EMS Satellite Networks, European Satellite Operators Association ABSL, Eutelsat S.A., Hispamar Satellites S.A., Hispasat, Hughes Network Systems, Hungarian Satellite Corp., Intelsat Ltd., Nera Satcom AS, New Skies Satellites, Panamsat, Satellite Communications Network of Excellence, SES Americom, SES Global, Star One S/A, Telespazio S.p.A. and ViaSat.

“What we are trying to do is encourage regulators around the world to simplify and liberalize regulatory environments,” Tony Trujillo, executive vice president and chief administrative officer at Intelsat and chairman of the most recent GBSI meeting, told Satellite News. “We want to try to use existing satellite spectrum on in-orbit and planned satellite to serve the demand for satellite broadband services, especially in the developing world. We are trying to not reinvent the wheel. We are trying to encourage the use of what we have already to encourage the provision of these services around the world.”

The group’s recommendations were developed throughout the course of three meetings since the group’s inception, with the most recent meeting, which took place last month. According to a document generated from that meeting and made available to Satellite News last week, GBSI concluded that significant steps could be taken by regulators to further simplify and liberalize the regulatory environment and thus reduce the investment required to deploy satellite services.

The group also concluded there is sufficient satellite spectrum and in-orbit and planned spacecraft are available today to serve the demand for broadband satellite services in the developing world and suggested efforts to deploy satellite broadband in developing areas should target specific markets for services, including villages with ICTs (Information and Communication Technology) and established community access points; universities and other educational institutions with; scientific and research centers; public libraries and other local community gathering points; hospitals and other health facilities; and local government offices.

Regulatory Framework Key

According to the document, GBSI concluded, “a pro-competitive regulatory framework is the most effective means to promote investment in and the provision of satellite services.” The document added, “Domestic regulatory reform is a critical means by which individual nations can encourage the establishment and development of broadband satellite infrastructure, and reduce the most significant barriers to such deployment today.”

GBSI recommended that countries implement regulatory measures that allow for full access to national markets by all satellite operators by such means as minimizing or eliminating satellite landing rights requirements and treating national and non-national satellite companies alike; improving licensing procedures; and reducing or eliminating foreign ownership limitations and minimizing national presence requirements for satellite operators, service providers network operators and equipment manufacturers.

The group also recommended minimizing customs duties and other fees for satellite services and equipment such as assessing fees based solely on recuperating administrative costs, assessing VSAT network fees on the basis of a complete VSAT network and not individual antennas. The group also recommended reducing or removing requirements for competitors to interconnect through incumbents.

“For satellite broadband equipment, actual equipment costs are not usually the largest component of equipment costs to users in many countries, but instead a substantial portion of equipment costs can often be attributed to customs duties, homologation expenses, unique cost-of-doing-business, legal presence requirements and regulatory fees in each country,” the document noted.

Aside from the regulatory recommendations, the group also suggested the exploration of a future single open standard for satellite broadband communications.

“If there is a single open standard for satellite broadband communications, that would help manufacturers, research people, operators to make satellite services more affordable,” Trujillo said.

Trujillo did not offer the specific recommendations on how to best implement these ideas, but said that a specific proposal regarding best regulatory practices will be presented to global regulators and government officials at the WSIS meeting in Tunis, Tunisia in November.

–Gregory Twachtman

(Tony Trujillo, Intelsat, 202/944-7835)