This chart compares the capital investment cost for satellite services with other broadband terrestrial services. Telastra chose to use Oxygen as an example of a fiber system, despite the fact that is no longer viable, because good price points were available for this system. Telastra's president, Roger Rusch, notes that the capacity of the transoceanic cables are 100 times as large as for each of the broadband satellite systems, but the undersea fiber cable capital cost is the same or less than the satellite systems. Also, DSL and cable modem access services will provide vastly greater throughput than the satellites, but the investment is enormous as well. The cost of providing broadband services soars as the penetration extends into rural areas, so these services will not reach everywhere.
Satellites are a relatively more expensive solution, in part because it is a wireless service.
He cautions, however, that satellites will need to work hard to keep all other costs low and to provide a high grade of service to ensure a viable market. And Comsys claims that over 90 percent of the 2000 bookings as of May are for Internet-related services. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of PBI Media, LLC is prohibited.