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To: djane who wrote (5361)6/25/1999 1:30:00 AM
From: djane  Respond to of 29987
 
*Cheaper MSS calls seen likely as new players enter fray


Friday, June 25, 1999

TELECOMS


YVONNE CHAN

Calls using mobile satellite systems (MSS) will become
cheaper as new networks are launched in the next 18
months, according to British Telecom (BT) Aeronautical
and Maritime managing director Rohan Chanmugam.

He said satellite call rates from the United States that
now cost US$3 per minute would drop to $2 within 12
months.

Intra-regional tariffs could fall below $1 per minute
within two years.

While the cheapest phone calls are for local connections
made on a fixed line, satellite phone calls are on the
other side of the spectrum, costing up to $7 per minute.

Financially troubled MSS operator Iridium this week
announced it would drop prices for handsets and phone
services in an effort to boost its lagging subscriber base.

Iridium Southeast Asia has 1,000 customers in Thailand,
Singapore, Malaysia and Burma - only one-third of its
targeted 3,000 subscriber base.

Cable & Wireless HKT and SmarTone
Communications have said they would resell Iridium
services, but have yet to set launch dates.

Despite Iridium's failure to reach targeted subscriber
numbers - it only had 10,000 users at the end of March
- many hardware and service providers remain
optimistic about the future of MSS operators.

Globalstar's MSS services will launch in the fourth
quarter, followed by ICO Global next year.

Ericsson and Mitsubishi have made prototypes of
dual-mode handsets that can be used on both satellite
and cellular phone networks.

Satellite phone users are niche market, typically
comprised of workers who are stationed in remote
areas where there are no wire and cellular phone
networks. MSS services are also known to suffer from
line drop and have trouble penetrating inside buildings.

Patrick Spink, manager of BT's marine and land mobile
satellite services, said he did not believe that the addition
of Globalstar and ICO would lead to an oversupply of
services.

"If you want to operate in any region . . . satellite is the
only option," Mr Spink said.

BT, which holds stakes in satellite projects such as
Inmarsat and Intelsat, plans to spend $50 billion over
the next five years to help develop what Mr Spink calls
a "network in the sky".

BT earlier this year bought a 20 per cent stake in
SmarTone, which has said it will apply for an
international gateway licence in the SAR.

Using satellite as a means to facilitate SmarTone's
proposed gateway services was possible and under
discussion, Mr Chanmugam said.

"The capability is there [but] we haven't decided how
we're going to use it," he said.

Copyright (c)1999. South China Morning Post Publishers Ltd. All Rights Reserved.





To: djane who wrote (5361)6/25/1999 1:31:00 AM
From: djane  Read Replies (3) | Respond to of 29987
 
Net boom to lift satellite use

Friday, June 25, 1999

INTERNET


ASSOCIATED PRESS in Singapore

Satellite usage in the Asia-Pacific region will experience
steady growth along with a rise in Internet use,
electronic commerce and mobile communications,
according to industry executives.

"I firmly believe that Asian economic and industrial
growth will be stimulated by satellite-based Internet
access, VSATs, e-commerce and direct-to-home TV
networks," said Michael Houterman, president of
Hughes Space and Communications International of the
US.

VSATs, or very small aperture satellite terminals, are
small earth stations used to handle digital transmission of
data. These are considered useful especially in
non-wired and congested areas in Asia, he said.

Demand for these services "in turn will stimulate new
orders for new national and regional satellite capacity",
Mr Houterman told delegates to the Asia Pacific
Satellite Communications Summit.

He cited industry figures showing Asia-Pacific
economies would invest US$9.5 billion in 73 new
communication satellites between this year and 2008.

Thirteen launches valued at $1.7 billion were scheduled
for this year in the region, with most of the new capacity
used for direct-to-home TV networks and Internet
Protocol (IP) applications, Mr Houterman said.

"Importantly, massive deregulation in the region is
facilitating both IP and VSAT communications. Ninety
per cent of the countries in Asia Pacific have opened up
their Internet access to competing carriers," he said.

Among the trends pointing to increased satellite usage
were the "much larger role" played by regional satellites
over purely domestic satellites.

Mr Houterman cited as an example an Intelsat satellite
that enabled China Telecom to link the mainland to the
Internet backbone in the US.

Asian telecom firms were co-operating to expand their
capacities. This included firms such as Singapore
Telecommunications and Taiwan's Chunghwa Telecom,
which launched a satellite last August.

Western companies were also moving into the
Asia-Pacific commercial communication satellite market
to help the region improve its telecom services, Mr
Houterman said.

The Loral Global Alliance, a network of some of the
world's leading satellite operators in the US, Europe and
South America, is engaged in talks with telecom and
information technology firms in Asia to boost its
presence.

The mainland is acknowledged as the biggest market for
satellite-based communication services, but its own
players are also gearing for the boom.

With the mainland waiting to take its place in the World
Trade Organisation, "in the telecommunications circle,
especially as a satellite operator, we are preparing for
big challenges," said Hao Weimin, president of China
Orient Telecom Satellite.

Copyright (c)1999. South China Morning Post Publishers Ltd. All Rights Reserved.