What is the cost of the VSAT link?

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Each figure of any VSAT link package reflects a lot of carefully calculated math of the cost. And these calculations is involved since the very first day the satellite operator company decided to build that satellite.
It’s enough to know that each GEO satellite cost around 300 Million USD, and expected number of transponders that satellite can have depends on its size, technology of building, and the cost of its lunching rocket compartment. Average satellite can hold up-to 15 transponders. The running cost of teach transponder over 10 years is around 2 Million USD/Year/transponder.
The cost of the large Teleport HUB dish antenna, HUB rack equipment, HUB and antenna land, buildings, running certified staff, power, internet backbone connection, government license etc. all need to be added and divided over the lifetime of the project. Licensing of the remote terminals (if required) may be either paid centrally by the service provider or by each individual remote user per local country tax arrangements. In the above assumption, the cost of the hub, network license etc. is approx. the same as the space segment charge, but the ratio will vary a great deal per usage
Satellite communication providers is leasing the transponders from the Satellite Operators. And typical KU or C Band transponder can provide 34MHz which cost around 2 Million USD/Year/Transponder for the forward link, if using the highest power the satellite can provide. While this cost can go down to 500K USD/Year/Transponder for the return link, using low power high-sensitivity. These numbers are changing when we talk about KA Band, as typical transponder is more powerful, smaller in size, but concentrated geographical than the KU or C Band, however the cost per 1MHz is very low comparing to these two bands. Of course, the figures of leasing cost are changing from Satellite operator to Satellite operator and is different in the same Satellite Operator between different satellites. It can be vary depending on Power, Frequency Band, Length of leasing contract, pre-booking and emptiness, priority, and in some rare occasions failure of the transponder.
For example, if we have a VSAT remote link which subscribed on 1Mbps Download/256Kbps Upload Dedicated 100% CIR link (Assuming total Space segment = 1MHz), and this remote link have 50 PC’s connected to its VSAT modem’s LAN port, then the cost can be calculated based on the assumed above mentioned figures will be: 1MHz = 73,528 USD/Year.
Where these above figures can significantly be lowered if the remote link is subscribed on Broadband bandwidth. This means that that above figures dedicated remote link will be shared among other links at the same time to reduce and share the cost between them. Shared ratios vary between 1:2, 1:4, 1:10, 1:20, up-to sometimes 1:100
Based on our example above, the same remote link but with broadband bandwidth can cost only down-to: 3,500 USD/Year with 1:20 sharing, or 950 USD/Year if sharing ratio reached 1:50, etc..
There are other ways to save on bandwidth charges (Monthly fees) of the remote VSAT link. If you decide to use bigger antennas (i.e. 2.4M or more) you give room for yourself to use better frequency modulation (i.e. 8PSK or 16QAM, maybe with better FEC ratio like 7/8) which will definitely gives you the ability to use less MHz space segment. You can also choose none-popular transponders, or use C-Band (but C-Band hardware is much expensive than the KU or KA) or you can even look for a KA-Band coverage satellite that will be already cheaper than both KU or C-Band. Inclined orbit Satellites also can be a considered option especially when you are looking into leasing big chunk of bandwidth (or may be a whole transponder) knowing the fact that most Satellite communication providers can lease you the proper VSAT hardware for this kind of satellites just for the sake of selling its bandwidth up-to the last minute of availability. Finally, always try to lease bandwidth for as maximum period as possible (1.e. 36 Months or more), this gives the sales person at the Satellite communication provider company the ability to grant you the best lower price you can find, although you might pay a security deposit to secure that long-term contract, but it’s always refundable as the month/few-months of the service depending on the contract terms and conditions.
It’s useful to mention that the MHz cost had fallen the past few years due to the competition of KA-Band HTS Satellites (High-Throughput Satellites). Although the KA-Band beam coverage are tiny comparing to the KU or C-Band, but these beams are very powerful and it is now also steerable beams which gives a great maneuverability for Satellite Operators to cover different regions during the KA-Band satellite useful life to cope with the ongoing changing in market demands, economical, and feasibility of the coverage. Now also new generation of KU-Band satellites are called HTS satellites. Their Satellite Operation companies are trying to change the game played from day-one by the KA-Band to provide tiny, powerful steerable beams but still the KA-Band is much cheaper in terms of the capacity comparing to those.
Remote VSAT full kit can cost around 350 USD (for KA-Band home user), but it also can go up-to several thousands of USD even with KA-Band when the link is operating to provider internet for big networks with much higher speeds especially for the forward link (Upload), but the benefits are amazing, the running cost (VSAT link Monthly fees) can go down dramatically because of using better modulation as mentioned above. Always consider investing in bigger antenna, higher power PLL LNB’s and BUC’s, Plus using new modulation modems and your monthly VSAT link bill will definitely go down.
Each figure of any VSAT link package reflects a lot of carefully calculated math of the cost. And these calculations is involved since the very first day the satellite operator company decided to build that satellite.
It’s enough to know that each GEO satellite cost around 300 Million USD, and expected number of transponders that satellite can have depends on its size, technology of building, and the cost of its lunching rocket compartment. Average satellite can hold up-to 15 transponders. The running cost of teach transponder over 10 years is around 2 Million USD/Year/transponder.
The cost of the large Teleport HUB dish antenna, HUB rack equipment, HUB and antenna land, buildings, running certified staff, power, internet backbone connection, government license etc. all need to be added and divided over the lifetime of the project. Licensing of the remote terminals (if required) may be either paid centrally by the service provider or by each individual remote user per local country tax arrangements. In the above assumption, the cost of the hub, network license etc. is approx. the same as the space segment charge, but the ratio will vary a great deal per usage
Satellite communication providers is leasing the transponders from the Satellite Operators. And typical KU or C Band transponder can provide 34MHz which cost around 2 Million USD/Year/Transponder for the forward link, if using the highest power the satellite can provide. While this cost can go down to 500K USD/Year/Transponder for the return link, using low power high-sensitivity. These numbers are changing when we talk about KA Band, as typical transponder is more powerful, smaller in size, but concentrated geographical than the KU or C Band, however the cost per 1MHz is very low comparing to these two bands. Of course, the figures of leasing cost are changing from Satellite operator to Satellite operator and is different in the same Satellite Operator between different satellites. It can be vary depending on Power, Frequency Band, Length of leasing contract, pre-booking and emptiness, priority, and in some rare occasions failure of the transponder.
For example, if we have a VSAT remote link which subscribed on 1Mbps Download/256Kbps Upload Dedicated 100% CIR link (Assuming total Space segment = 1MHz), and this remote link have 50 PC’s connected to its VSAT modem’s LAN port, then the cost can be calculated based on the assumed above mentioned figures will be: 1MHz = 73,528 USD/Year.
Where these above figures can significantly be lowered if the remote link is subscribed on Broadband bandwidth. This means that that above figures dedicated remote link will be shared among other links at the same time to reduce and share the cost between them. Shared ratios vary between 1:2, 1:4, 1:10, 1:20, up-to sometimes 1:100
Based on our example above, the same remote link but with broadband bandwidth can cost only down-to: 3,500 USD/Year with 1:20 sharing, or 950 USD/Year if sharing ratio reached 1:50, etc..
There are other ways to save on bandwidth charges (Monthly fees) of the remote VSAT link. If you decide to use bigger antennas (i.e. 2.4M or more) you give room for yourself to use better frequency modulation (i.e. 8PSK or 16QAM, maybe with better FEC ratio like 7/8) which will definitely gives you the ability to use less MHz space segment. You can also choose none-popular transponders, or use C-Band (but C-Band hardware is much expensive than the KU or KA) or you can even look for a KA-Band coverage satellite that will be already cheaper than both KU or C-Band. Inclined orbit Satellites also can be a considered option especially when you are looking into leasing big chunk of bandwidth (or may be a whole transponder) knowing the fact that most Satellite communication providers can lease you the proper VSAT hardware for this kind of satellites just for the sake of selling its bandwidth up-to the last minute of availability. Finally, always try to lease bandwidth for as maximum period as possible (1.e. 36 Months or more), this gives the sales person at the Satellite communication provider company the ability to grant you the best lower price you can find, although you might pay a security deposit to secure that long-term contract, but it’s always refundable as the month/few-months of the service depending on the contract terms and conditions.
It’s useful to mention that the MHz cost had fallen the past few years due to the competition of KA-Band HTS Satellites (High-Throughput Satellites). Although the KA-Band beam coverage are tiny comparing to the KU or C-Band, but these beams are very powerful and it is now also steerable beams which gives a great maneuverability for Satellite Operators to cover different regions during the KA-Band satellite useful life to cope with the ongoing changing in market demands, economical, and feasibility of the coverage. Now also new generation of KU-Band satellites are called HTS satellites. Their Satellite Operation companies are trying to change the game played from day-one by the KA-Band to provide tiny, powerful steerable beams but still the KA-Band is much cheaper in terms of the capacity comparing to those.
Remote VSAT full kit can cost around 350 USD (for KA-Band home user), but it also can go up-to several thousands of USD even with KA-Band when the link is operating to provider internet for big networks with much higher speeds especially for the forward link (Upload), but the benefits are amazing, the running cost (VSAT link Monthly fees) can go down dramatically because of using better modulation as mentioned above. Always consider investing in bigger antenna, higher power PLL LNB’s and BUC’s, Plus using new modulation modems and your monthly VSAT link bill will definitely go down.