Satellite is a cost-effective way to deliver certain types of traffic. For example, a European ISP can establish an asymmetric connection to the U.S. Internet backbone via satellite. With a small channel from Europe to the U.S. and a large channel back, the ISP can cost-effectively transport high volumes of content from U.S. web servers to European customers. Satellite also provides bandwidth flexibility. Service providers can differentiate IP transport services with offerings that provide incremental increases in bandwidth or bandwidth on demand.
Satellite also transports broadband and multicast data effectively.
Satellite's usefulness for broadcasting and IP Multicasting applications lies in its ability to send data to one location or multiple locations for the same cost. In contrast, land-based networks often must transport data over multiple router hops and replicate data packets along the way to reach all intended recipients. This requires additional bandwidth and network overhead, which increases costs. IP Multicast applications such as Webcasting, site mirroring and content caching are applications that can be carried efficiently by satellite. Another benefit of satellite IP transport is its ability to provide congestion relief.