Station 12, the satellite arm of Netherlands telco Royal KPN NV, brushing off post-Iridium claims that the market for satellite communications in developing nations is not profitable has launched SatOnline, a service to give internet service providers (ISPs) in emerging internet markets broadband access to the internet via satellite.
Station 12 calls SatOnline an integrated service in that it uses both satellite and the land-based backbone from KPN’s joint venture firm KPNQwest Inc. The firm will market the service mainly in Eastern Europe, Africa and the Middle East, where land-based infrastructure is underdeveloped.
Using a satellite link to Station 12’s earth station in Burum, Netherlands, a remote site could gain access to the internet far faster than via local lines. Station 12 uses around 15 satellites from Intelsat, Eutelsat, Inmarsat and Iridium among others to cover about 90% of the Earth’s surface. Prices were not available, depending on bandwidth required, but the company says an ISP would not pay significantly more for a satellite connection than a land-based equivalent. Cost savings by satellite are greatest when transmitting point to multipoint.
Station 12 MD Victor Elsendoorn noted that, while ill-fated satellite telco Iridium LLC (NBD 08/16/99) has similarities to SatOnline, his company’s targets are not nearly as unrealistically ambitious as Iridium. Elsendoorn said his new service is more akin to a precursor to Teledesic, the ‘internet in the sky’ satellite constellation Bill Gates threw his weight behind. Until large projects such as this are operational- not until 2005, says Elsendoorn, he sees a rapidly growing market for what Station 12 provides. He estimates 20% of internet traffic will go via satellite at some point by 2005.
