The VSAT Internet Business is Doomed?

Chief Cornelius Adebayo, Minister of Communications:
"With the introduction of this product [NITEL IP Wholesale] using optical fibre, gone are those days of VSAT as a means of providing Internet services in Nigeria with limitation in speed and reliability."
Source: Satellite Doom - Sun News Online

I think it's time for companies that provide Internet Gateways based on VSAT technology to jump on the NITEL IP Wholesale bandwagon before it's too late.  Nigerians are simply not going to buy your less reliable, high latency, Internet service at a higher price!

For more Information: What would you need to create broadband Internet access in Nigeria?

The Satellite Doom article tells us that Globacom was able to offer a consortium of banks a price that is 20% of what they are paying to VSAT providers currently charge them to link their branches.  Globacom is using its fiber optic backbone to provide this service.

I hope to be able to tell you how much NITEL is charging ISPs to use its IP Wholesale service.

This is a welcome development. All those VSAT sellers should better start thinking of something else to sell.

It's the best thing that has happened to broadband access.  Even though we were aware of the limitations of VSAT, there wasn't any alternative till now.  I just hope NITEL will be able to manage it the way BT has done in the UK.
cheers.

I can tell you for free that 1MB full duplex on SAT-3 is $7,500 per month while 2MB per month is $11,500. As time goes on, the price will be slashed. The higher the bandwidth the lower the price. NITEL has quite a number of copper wires in place which i think will help in the deployment.

The bandwidth will be delivered at your doorstep. Its up to you to utilise it.

Wow, what an observation!

@otokx , your post is not clear. Can you elaborate more on it pls. 

i'm thinking PSAT.

internet business and technology or something along that line 

Ah, whoever said the VSAT business is doomed really is just on his own.

VSAT companies like Netcom, Accelon, DOPC and MWEB are still making it big. They still support the major banks like Oceanic, BankPHB, Ecobank and even almighty UBA with so many branches.

Until the issue of NEPA is addressed, we'll continue to pay more for bandwidth.

The same 1mbps that people are offering for $7,000 is being offered in Exeter, Uk for 50 pounds a month, does it make sense? (forget about the fibre optics shizzle)

Are you saying that VSAT is cheaper than the fibre optics shizzle for the same bandwidth or just mis-yarning?

CDMA connections have taken over Nigerian market now leaving VSAT users to be thinking.Anyway Vsat connection depends on the area one is located,if you have a good site you can be thinking of recovering your monthly subscription easily but where you dont have enough client then you are doomed to the core.There is this ISP that also offer cheap VSAT  internet connection,they are located in United Arab Emirates.Its called DIGITALSKYS with Idirect modem router.

Seun, why not for the last time try spacenet technology limited. Then i will accept.if you want to know more, mail me at mexxywinter@yahoo.co.uk or 08080436008.
It's your choice,you are not being forced to.Good news awaits you and your internet connection

In Africa the answer is yes

VSAT satellite technology is the only method that is available everywhere around the entire region irrespective of infrastructure, geography, and location. Other popular technologies like broadband and fiber optics are limited in coverage, reaching homes and business only in more affluent areas.

you may find more information on: www.gilat.net

@ NaijaEcash,

You are probably using a Ku-band VSAT. Not all VSATs change faces! Get a C-band if you can.

Bandwidth is costed by ISPs or SPs regardless of the connectivity medium. If the ISP can not "throw" a cable to your village then you must get a V-SAT equipment (if they can provide for it).

@ All,

Don't blame the communications minister, He can easily sell DoPC's VSAT to Netcom should a better deal come up tomorrow. VSATs are mobile, you can even ship one to your village for christmas. Mobile VSATs can sit atop buses and are used at Trade fairs, Exhibitions. Don't bad mouth VSATs if you have little knowledge of them.

@ Samir,

I don't know why all this fuss about VSAT or no VSAT.

It's like keeping a PitBull in your couch and locking the poodle outside!

VSAT is basically for remote locations and places where you don't have fibre/ADSL. It is also for mobile connectivity. VSATs should NOT be used in cities where there is access to broadband connectivity (people here only think INTERNET, common wake up, connectivity does not necessarily imply internet!)

Glo/Nitel won't trunk an optical cable to downtown Mutum Biu or Takum! For rural connectivity, especially mobile telephony, your best bet is VSAT, as rightly said, Gilat are leaders in that regard. I concur.

The high latency you experience with VSAT is obviously due to the distance of the satellite from the earth and the fact that signals have to go up and then down (double latency). As a result you can run a ping test and never get below 500ms in a whole year . Nevertheless, demand for VSAT connectivity increases year in year out. Don't sit here and complain, google is your friend. Trade your VSAT in to these VSAT companies (i'm sure they'll jump at it because it's always a scarce commodity) then go buy your DSL. Shikena.

ps: Christino is a Certified "Network" Specialist (embryo expert)


In addition,

Wimax/wi-fi do not work independently, they are just means of extending network connectivity, i mean they cannot provide start up connectivity. You cannot compare them with V-SAT. In remote areas, VSAT gets the signals and pass it on to Wimax to enlarge the coverage area and not the other way round, Wimax cannot sit in a remote area and get signals from a distant location. You get the maths and the "catch"?