D2.3 Synthesis Feasibility Report

1 RURAL WINGS IPToulouse, 21-22 March, 2007

D2.3 Synthesis Feasibility Report

Updated document following RP1 EC Review

2 RURAL WINGS IPBrussels, 15 October, 2007

SUMMARY

1. Reviewers comments

2. Updated document structure

3. Key conclusions of reporti. Hybrid satellite-wireless broadband servicesii. Hellas-Sat satellite broadband servicesiii. Avanti satellite broadband servicesiv. Eutelsat satellite broadband services

Special focus on TTSA as added value distributor

4. Next steps


SUMMARY





4. Next steps


I. KEY REVIEWER COMMENTS

1. The document does not provide the information promised in the Work Package Description in the proposal. No information can be deduced on the financial viability of RW. It should in its final format appear as a Feasibility report

2. The document contains incomplete information, in part even obsolete. It also appears to have been inadequately harmonized from inputs received from several sources.

3. Sect. 6 should present possible business models for a RW service (as stated in the project proposal). Instead, section 6.1 addresses possible technologic advances to reduce cost of service provision. It is unclear how these are reflected in the financial calculations.

4. The elements which are required in order to assess the RW service provision cost are not analysed.

5. The report needs to be completely rethought and reworked. In its current format it does not reflect the findings from the other sub WPs.

6. Appropriate QA standards to be applied, e.g. appropriate references, sources, readable figures, etc.


SUMMARY





4. Next steps


UPDATED DOCUMENT STRUCTURE (1/2)

To answer the EC reviewers comments the document has been fully restructured

Part I:Technical review of user needs analysis Analysis and review of the user needs as expressed in the final

report of WP 3 (D3.1) in order to assess the current broadband development situation of candidate RW pilot sites and to translate the user requirements into technological requirements and user profiles

Part II: Technical feasibility assessment Identification and analysis of possible broadband solutions,

particularly based on hybrid satellite-wireless technologies and assessment of their suitability with respect to the user requirements of the selected sites


UPDATED DOCUMENT STRUCTURE (2/2)

Part III: Financial feasibility assessment Analysis of satellite broadband market and its sustainability

wrt to terrestrial infrastructure competition Investigation of financial feasibility of RW solution wrt the

strategic and business modelling approaches of Avanti, Eutelsat/TTSA and Hellas sat

Conclusions & recommendations Inputs from precommercial or trial projects that gained

expertise in deploying similar satellite solutions in rural areas Synthesis of conclusions and an assessment of the overall

viability of the use of advanced satellite networks and infrastructure as introduced by the RW project.


TECHNICAL REVIEW OF USER NEEDS ANALYSIS

Reviewers comments Improve the link with the other RW work packages

Major document improvements implemented: Examination of user requirements as expressed in WP3

Assessment of available services/infrastructure for RW countries

Assessment of whether RW sites are representative sample of the rural situation in each country

Analysis of user profiles, their applications & requested data rates Institutional, business, remote home-workers/teleworkers,

residential users, guest users.

Definition of four bandwidth profiles education, communication, involvement, business, research


TECHNICAL FEASIBILITY ASSESSMENT

Reviewers comments Document does not reflect findings of other sub WPs

Major document improvements implemented: Main findings of reports D2.1 & D2.2 have been integrated Updated and clarified feasibility analysis methodology in line

with RW proposal

Description & analysis of two-way satellite solutions Trade-off between DVB-RCS and DOCSIS

Description and analysis of local area networks Added-value of having a last-mile wireless network Trade-off between different last-mile technologies

End-to-end network architecture considerations Wireless network coverage area Quality of service Deployment/exploitation/scalability requirements


FINANCIAL FEASIBILITY ASSESSMENT

Reviewers comments Information outdated Business models missing or incomplete Missing information on CAPEX/OPEX cost elements

Major document improvements implemented: Structure has been reviewed and focuses on the assessment of

financial viability of RW wrt to the business models of the satellite services providers in Ruralwings (Hellas sat, Avanti, Eutelsat/TTSA)

Homogeneous and coherent structure of information for the three RW services providers

Key cost elements are provided (where not confidential) All material has been checked and updated according to the

latest available data All data has been referenced and sources indicated


SUMMARY



3. Key new elements and conclusions of reporti. Hybrid satellite-wireless broadband services ii. Hellas-Sat satellite broadband servicesiii. Avanti satellite broadband servicesiv. Eutelsat satellite broadband services


4. Next steps


SUMMARY





4. Next steps


Feasibility of satellite-wireless learning hub (1/4)

RURAL WINGS proposes the creation of a “learning hub” which is mainly a rural local node providing access different categories of users:

students and teachers in rural schools or multigrade schools or other rural educational settings

farmers SME entrepreneurs doctors and health personnel working at rural health centres local administrators/ public authorities’ personnel, and rural citizens using different services at home

Hybrid communications network philosophy two-way broadband satellite internet access + wireless last mile solution



Key lessons learned from recent projects implementing and promoting satellite+wireless for rural broadband hubs (TWISTER, BARRD, INSPIRE)

Services cost and user requirements Users in rural areas of the same expectancy levels as those in urban

areas regarding technical performance, user support and price Combined TV + internet access offer?

Reliable, integrated, user-friendly and scalable operations Easy identification and quick resolution of problems End-to-end monitoring scalable to thousands of terminals Automated management capabilities (i.e. configuration mgt) Easy to use interface with network reporting at different levels

Improvement in installation procedures Robust installation procedures with preconfigured equipment Line-of-sight issues for wireless local loop deployment!



Increased mutualisation factor of hybrid solutions Typical local community satellite offer: 2 Mbps/512kbps Typical wireless coverage area: 800m (in LOS!) Recommended number of users per site: 20 Higher mutualisation will have statistically better performance Increased satellite service offer & improved wireless coverage

Reduced maintenance costs Improved reliability & stability of equipment (hard disk, power

supplies, etc.) Partnership with local technicians for on-site intervention

Local authorities as a driving force Need to be involved from the start Offer them a long-term investment path



Not all RW sites benefit from mutualisation through wireless local loop

Discussions with local authorities to implement local loop in parallel with RW project

Satellite services offer specifically tailored to educational institutions

103225128•TOTAL

11•SWITZERLAND (DBC)

0002•SOUTH AFRICA

0004•GEORGIA

0007•ARMENIA

11•ISRAEL (FOURIER)

0207•ISRAEL

34816•UK

12210•POLAND

1227•ESTONIA

1218•CYPRUS

02114•ROMANIA

1328•FRANCE

1326•SWEDEN

12210•SPAIN

18527•GREECE

No of WiFiNo of pilot sitesNo of WiFi

No of pilot sites

for the first project phaseFor the full duration•Countries

103225128•TOTAL

11•SWITZERLAND (DBC)

0002•SOUTH AFRICA

0004•GEORGIA

0007•ARMENIA

11•ISRAEL (FOURIER)

0207•ISRAEL

34816•UK

12210•POLAND

1227•ESTONIA

1218•CYPRUS

02114•ROMANIA

1328•FRANCE

1326•SWEDEN

12210•SPAIN

18527•GREECE

No of WiFiNo of pilot sitesNo of WiFi

No of pilot sites

for the first project phaseFor the full duration•Countries


Use of satellite for education and training Broadcasting one way service i.e TV/radio/data Two-way service with terrestrial return link i.e interactive TV Two-way satellite service i.e broadband internet access

Key lessons learned from projects implementing two-way satellite broadband services

Trapeze (1999 – 2001) Schoolsat (2001 – 2003) Schoolcast (2004 – 2005) JISC satellite pilot trial (2002-2004) Telesat Satellite Multimedia Trials for Schools (2001 – 2002)

Satellite services offer for education & training (1/2)


Satellite services offer for education & training (2/2)

Demonstrated overall technical feasibility

Perceived speed of communications can be improved Services package, latency, BoD, contention Caching, TCP acceleration

Critical aspects: user support & troubleshooting Remote locations with limited ICT expertise, integration with

local LAN value chain based on small and independent retailers and

limited technical support from SSP Support to individual users can be effort consuming


SUMMARY





4. Next steps

20 RURAL WINGS IPBrussels, 15 October, 2007 20 RURAL WINGS IP

NEW & UPDATED ELEMENTS FROM HELLAS-SAT

Cost elements Satellite and terrestrial bandwidth costs Subscriber equipment and installation costs Billing and CRM cost per customer Marketing and customer acquisition costs

Market assessment General assessment of satellite broadband services market in

HELLASS SAT target countries Focus on education market for satellite broadband

Hellas Sat positioning in value chain and services offering

SWOT analysis of Hellas Sat solution wrt RW requirements


Hellas Sat key conclusions on RW feasibility

Broadband Internet is a great tool for education

Users are enthusiastic with the service available to them

The example of the pilot site Fourna Evritanias is a great example

A teacher is the pilot site of Parakentro in Cyprus started a postgraduate degree by distance learning in order to enhance his knowledge

The price is a drawback at the moment

The HELLAS SAT services at the moment are targeting SMEs Tailoring the service for educational purposes will drop the price New technological advances will drop the price of equipment


Sustainable validation sites with added-value

HELLAS SAT has installed and provide service to 10 pilot sites in the frame of the first period of RW

Pilot sites in Cyprus: Parakentro Cultural Center Environmental Studies Center

Pilot sites in Greece: Eraklio Kritis Fourna Evritanias Mesta Chios Pyles Karpathos Salakos Rodos Aigiali Amorgos Agios Nikolas Bias Lakonias Valtesiniko Arkadias



The users are happy with the usage of the service and indications show that they will continue with the service beyond the RW

The price of the equipment will drop to half

Based on the usage of the service (mostly in schools) a better taylored service will be provided – lower cost

At the moment the internet speed available to the sites is high enough to cover all the applications that are available and even more demanding applications. If lower capacity is needed then lower cost to the user.


SUMMARY





4. Next steps


NEW & UPDATED ELEMENTS FOR AVANTI

Cost elements Satellite and terrestrial bandwidth costs Subscriber equipment and installation costs Marketing and customer acquisition costs

Trade-off between hybrid satellite-wireless solutions versus direct-to-home satellite solutions

Risk analysis of Avanti business case SWOT analysis Risk factors identification and mitigation actions

Assessment of sustainability of satellite internet services Assessment for Avanti business strategy Assessment of RW educational applications


Avanti key conclusions on RW feasibility

Market results confirm sustainability of Satellite/WiFi internet services

Company has been able to attract investors interest to sustain its growth and finance a dedicated satellite to bridge the digital divide in rural areas

Cost of operation and cost of user terminals are critical factors for a satellite service.

Ka and ACM reduce opex Decreasing DVB/RCS UT prices and new standards reduce

capex for end users

Still to demonstrate commercial viability of educational application (some work has to be done in WP8)



Validation Sites: Cilcennin, Wales, Rural SME & Community, 3 users Bishop Burton, NE England, Farming, 5 users Camborne, E England, Community, 5 users Biggar, Scotland, Farming, 3 users

Adaptations: Cilcennin uses a mesh Wifi system due to topology

Sustainability Measures Chosen sites with little prospect of terrestrial connection Ensured that terms of Avanti’s commercial service are

understood Provided enhanced contact and support during the early phase


Recent evolutions in Avanti target market & technical solution

Avanti will focus more on Eastern European Countries as Hylas operational date is getting closer

Recent evolutions of technical solution i.e. sat + wifi versus sat directly to the end-user

Sat only solutions are today possible thanks to the decrease of DVB/RCS UT pricing

New STM HUB installed and operational (DVB-S2) Growing focus on applications (Business Continuity, IPTV, etc)


SUMMARY





4. Next steps


NEW & UPDATED ELEMENTS FROM EUTELSAT

Clarification of Eutelsat, Skylogic and TTSA respective role in the satellite broadband provisioning value chain

Generic business model for D-Star services with justifications and detailed explanations for

Revenue estimation CAPEX investment OPEX investment

TTSA business model elements Assessment of costs versus revenues Risks threatening sustainability of business

Assessment of feasibility of providing a successful business case for the RW users


Eutelsat key conclusions on RW feasibility

Please complete with your key conclusions regarding your technical/financial feasibility analysis carried out for the RW project

Eutelsat please complete slide


TTSA key conclusions on RW feasibility

Annual net income in range 320kE – 420kE. SP margin/BW ~ 20%, this means a total TO = 2,1ME ~ 400 terminals

Risks : Ramp up : reduce constraints on BW procurement, better contractual

conditions for SP Available VC S/W not 100% compliant Commercial effort larger than expected Geographical coverage Required user support larger than expected Change of policy of key providers (satellite operator, VC software

vendors etc …) Tariffs / cost of bandwidth too high for market acceptance

Recommendations : Sustainability & lower / per use tariff : concentrate different types of

traffic & services in a common bandwidth pool Critical mass of users, assess usage profiles Further adaptation of QoS policies



Validation sites currently in operation1.ESTONIA PIIRISSAARE MUNICIPALITY CENTER2.ESTONIA RUHNE VALLAVALITSUS3.SWEDEN TARFALA RESEARCH STATION4.ISRAEL ISRAELE-FOURIER5.ISRAEL ISRAELE-BGU 2 Hura Municipality6.ISRAEL ISRAELE-BGU 1 Hura Technological High School7.ROMANIA PIETRA ARSA - Complexul National Sportiv Piatra 8.ROMANIA DEZNA - Scoala Generala Dezna9.POLAND Primary School in Polana10.POLAND RURAL WINGS - Babiogorski Park Narodowy 11.SPAIN TEO12.SPAIN PRATS13.SWITZERLAND ENGELBERG - DBC GmbH14.FRANCE FONTAINEBLEAU – INSEAD

Standard services specifications and tariffs have been published.

At this stage, distribution of services behind the terminal remains the responsibility of the customer



Please elaborate how the solution put in place is adapted to their user needs.

Please explain what measures you have taken to encourage as far as possible the sustainability of the sites during and after the RW project.

Please explain how you will ensure sustainability since only a limited number of sites are actually sharing the satellite terminal through a wifi (or other) local area network

Eutelsat: please complete slide


Eutelsat/TTSA position on DVB-RCS vs DOCSIS

Explication of services and market differentiation between the two technologies and associated services packates?

Why DOCSIS has not been implemented in Ruralwings so far? DOCSIS service only available recently? DOCSIS not adapted to the user needs expressed so far?

Would it be useful to use DOCSIS for the future, not yet deployed Ruralwings sites?

Would it allow to better meet the user requirements? If yes/no please elaborate on the reasons why?

Would it be feasible to use DOCSIS for the future, not yet deployed Ruralwings sites?

Is it possible to have a mix for solutions or would this pose problems (budget issues, duplication of statistics monitoring tools, etc.)

If yes/no please elaborate on the reasons why?

Eutelsat: please complete slide


SUMMARY



3. Key new elements and conclusions of reporti. Hybrid satellite-wireless broadband servicesii. Hellas-Sat satellite broadband servicesiii. Avanti satellite broadband servicesiv. Eutelsat satellite broadband services


4. Next steps


Next steps: WP 5 – Adaptation of platforms & tools

Updated end-to-end system design Final version of D3.1 List of selected RW sites Results of the Phase A test runs

Performance benchmarking of latest wireless equipment and technologies

Integration of tools and procedures for network monitoring and statistics reporting (in cooperation with WP 7)

Assessment of performance of RW applications on RW SSP platforms (Avanti, Hellassat, Eutelsat/TTSA)

Validation of additional POP equipment where required (caching, prefetching, VPN, NAT and routing, etc.)

End-to-end QoS management (Hub, LAN) Sharing rules for the IP CONNECT Eutelsat/TTSA bandwidth Videoconferencing/VoIP


Next steps: WP 6A – Pilots Implementation & Trials

Synthetic overview of selected pilots (1 or 2 slides per site) Name of the site (city/town) Location (region, country, rural, semi-urban, island, etc.) Number and type of users

student, teacher, farmer, SME, doctor, administration, etc. Type of applications (virtual classroom, etc.) Network architecture overview Contact point at National Coordinator Contact point at local site (key user, town hall, etc.) Deployment: actual or planned installation dates Plans for services continuity after Ruralwings

Common Excel sheet with status of selected sites Common Excel sheet with user’s classification of pilot sites


Next steps: WP 6B – Training of the users

Talks with local authorities to promote the use of the broadband internet in their villages

Support the local communities technically in order to install satellite and WiFi to cover the village

Organise presentations to the village informing the local people from the benefits of using the internet, listen to them and give them new ideas

Provide training to local communities on basic ICT skills

Sharing the experience of other areas and communities that they already use the internet for various activities such as education, business, entertainment etc


Next steps: WP 7: Evaluation

Network usage monitoring Upload & Download volume and bandwidth Applications & Protocols: web browsing (http, https), file transfers

(FTP,FTPS), mailing (POP3, SMTP), online streaming (RTSP, Msplayer, …), Peer to Peer, etc

TCP/UDP Connections (recommended but more difficult to measure)

Based on the real usage needs to tailor a service targeting educational market

Network reliability evaluation Incident notification: Hotline phone, mail,online form, monitoring, etc. Network component: Satellite modem, antenna, router,… Type of incident: hardware, software, manipulation, … Solution applied: Replacement, Reboot, Re-configuration … Intervention: remote or on-site Resolution time: time required for solving the incident.


Next steps: WP 8: Market investigation

To be completed by Avanti

42 RURAL WINGS IPToulouse, 21-22 March, 2007

Thank you for your attention.

Documents

D2.3 Synthesis Feasibility Report