{"id":12484,"date":"2016-10-17T01:02:38","date_gmt":"2016-10-17T00:02:38","guid":{"rendered":"http:\/\/www.ispreview.co.uk\/?p=12484"},"modified":"2016-10-17T06:50:02","modified_gmt":"2016-10-17T05:50:02","slug":"europasat-interview-broadband-uso-unfeasible-without-satellite","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2016\/10\/europasat-interview-broadband-uso-unfeasible-without-satellite.html","title":{"rendered":"Europasat Interview – Broadband USO is “unfeasible” Without Satellite"},"content":{"rendered":"

The CEO of UK ISP Europasat<\/a> (Satellite Solutions Worldwide<\/a>), Andrew Walwyn, has told ISPreview.co.uk in our latest interview that the Government’s plan to introduce a 10Mbps Universal Service Obligation (USO) for broadband “cannot be satisfied<\/em>” without subsidised Satellite<\/a> technology.<\/p>\n

<\/p>\n

As an ISP Europasat, which has its HQ in the United Kingdom and is listed on the London AIM market, was first founded in 2008 and has since become the largest pan-European Satellite<\/a> broadband distributor with customers in 30 countries (mostly European markets); they’ve also just become the biggest one in Britain.<\/p>\n

Unlike most such providers, Europasat offers a selection of packages using three physically separate Satellite<\/a> platforms (spacecraft in orbit around the Earth) from Avanti, SES and Tooway (Eutelsat<\/a>). However much of their recent growth has been built through the acquisition of rivals, such as the move to gobble Avonline for \u00a310m (here<\/a>).<\/p>\n

Today the provider is home to 17,000 subscribers in the UK, with an overall total of 75,500 across all of their markets and they hope to reach 100,000 homes by the end of 2017. Suffice to say that Europasat has a unique insight into how Satellite technology could help to achieve the Government’s various broadband targets.<\/p>\n

The Challenge<\/span><\/strong><\/h3>\n

On the other hand many are wary about the pitfalls of such technology, which can suffer from extremely slow latency (bad for fast-paced multiplayer games and certain other online services), limited \/ expensive usage allowances and poor performance due to capacity constraints; the latter isn’t easy to fix (it can take years and lots of money to launch a new Satellite).<\/p>\n

The inherent problems with the service may partly help to explain why the Government’s \u00a360m<\/strong> rural subsidy scheme (here<\/a>), which has been aimed at around 300,000 UK premises that can’t get even a basic 2Mbps connection, is struggling to take-off. The latest official data from June 2016 suggests that around 4,555 applications have been approved, with only 783 vouchers being redeemed for a total spend of \u00a3274,050.<\/p>\n

Naturally we wanted to know more about this and what the future held for Satellite. Happily the CEO of Europasat, Andrew Walwyn<\/strong>, has been able to engage with us and the good news is that ultrafast (100Mbps) capable services and possibly even “unlimited<\/em>” usage allowances should be coming, albeit in the next few years.<\/p>\n

This is important because it’s possible that Satellite might just end up being one of the only economically viable ways for the Government to reach those in the most remote locations, unless the investment is found to deliver something better.<\/p>\n

NOTE:\u00a0Andrew Walwyn started his career on the shop floor in Carphone Warehouse<\/a>, before rising up the ranks to head up the sales channel. Later he moved onto DX Communications as their Sales Director and shareholder, where he helped grow the retail channel from a few outlets to over 200. DX was bought out by BT<\/a> Cellnet (now called O2<\/a>) and formed the basis of their current store footprint. After that co-founded Satellite Solutions Worldwide (SSW) in November 2008 and has led the company through significant global expansion, including its AIM listing last May.<\/p>\n

The Europasat Interview<\/strong><\/span><\/h3>\n

1. As an ISP Europasat appears to be quite well positioned in the UK market, not least because you give consumers the ability to choose a service from several physically different Satellite platforms. Can you tell us about the Satellite platforms that you use (SES, Avanti etc.) and what are the key differences?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

Europasat is the only pan European, independent satellite broadband ISP. It offers branded satellite broadband tariffs for all the leading European networks providers including; Avanti, SES and Tooway. As the providers have different but often overlapping, coverage areas, we provide an expert one-stop shop to get what\u2019s right for customers depending on their location.<\/p>\n

In addition, each network has a range of tariffs with different speeds, data allowances and price points, so being able to offer all three enables us to tailor most precisely the best solution for that customer\u2019s specific usage. In this way we can deliver both better service and value for money to our customers.<\/p><\/blockquote>\n

2. Satellite providers appear to have benefited from the Government\u2019s new Universal Service Commitment (USC) subsidy, which offers vouchers worth around \u00a3350 to help cover the cost of having a new satellite or fixed wireless broadband service installed.<\/strong><\/p>\n

The scheme itself is aimed at around 300,000 UK premises that are currently unable to receive a basic broadband speed of 2Mbps, which are also areas that probably won\u2019t benefit from a “fibre broadband<\/em>” upgrade via the Government\u2019s Broadband Delivery UK<\/a> programme.<\/strong><\/p>\n

How much of an impact has this scheme had on your ISP and has it proven to be a significant catalyst for growth?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

There are currently four subsidised schemes running across the UK – the Welsh Broadband Cymru Voucher Scheme, the Better Broadband national scheme, the Better Rural Broadband (BDUK) Funding Pilot and standalone county pilot schemes. The Welsh scheme is going well \u2013 it has been well publicised and the process is simple.<\/p>\n

The take-up on the BDUK National Scheme has been much lower \u2013 but its recent restructure has increased uptake with over 1,500 orders since that date – we\u2019re happier with that and look forward to significant growth through the Autumn.<\/p><\/blockquote>\n

3. Speaking of the subsidy, you’ve previously complained that the scheme suffered from a “very complicated<\/em>” customer ordering process and “isn’t generous<\/em>” enough. Can you offer a bit more detail on those complaints and tell us if, to your knowledge, anything has been done to improve the scheme in respect to those criticisms and what other enhancements you’d ideally like to see?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

We felt that the BDUK scheme had three fundamental issues:<\/p>\n

\u00b7 The process and customer journey was too complex because of BT<\/a>\u2019s involvement in the supply chain.<\/p>\n

\u00b7 For Local Authorities there was a potential conflict of interest in terms of funding as the \u00a3350 Broadband for All subsidy was drawn from the Local Authority\u2019s existing broadband budget. Arguably this wasn\u2019t a great incentive to drive Local Authority engagement in the scheme, as it would reduce funds available for fibre deployment.<\/p>\n

\u00b7 There was a lack of general awareness of the scheme amongst the target population.<\/p>\n

From 1st June changes were made to the BDUK scheme to rectify these problems and stimulate uptake of the offer to deliver better broadband to target communities.<\/p>\n

Firstly, BT<\/a> are no longer involved and so the market can operate as normal for a satellite broadband sale. Also, BDUK now have their own budget allocated by the Treasury, which means that the \u00a3350 per customer is subsidised wholly by them.<\/p>\n

Lastly, BDUK have advised that they will soon have better data available on addresses that are eligible \u2013 this still requires joined-up approach between Local Authorities and service providers such as Europasat to ensure that potential customers who can benefit are fully aware, but is a very positive step in the right direction and we are pleased that the team at BDUK have been so receptive to our feedback.<\/p><\/blockquote>\n

4. The Government has also proposed a new 10Mbps Universal Service Obligation, which is likely to focus most of its effort upon the final 3% of UK premises that won\u2019t be covered by a superfast broadband network via the Broadband Delivery UK<\/a> programme.<\/strong><\/p>\n

At present it\u2019s not known what sort of technology and performance criteria (e.g. latency, upload speeds, affordability, usage allowances etc.) will be set for the USO. But if you could design the USO, what criteria would you set to ensure that a good quality connection is constantly maintained for all of those covered by it?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

We have always actively encouraged the development of a clear USO, as we know it is unfeasible and cannot be satisfied without satellite technology. Our frustration has always been a lack of clarity over the USO \u2013 across Europe we have seen incumbent large telecoms providers and, to an extent, governments significantly over-promising the speed and scale of fibre deployment, rather than giving people who live in rural communities the information they need, with the options that are readily available to them.<\/p>\n

The USO should be clear \u2013 subsidised satellite broadband or wireless broadband for any business and consumer that does not have access to FTTP<\/a> or FTTH<\/a> broadband, that way everyone will have access to at least 30Mbps broadband speeds.<\/p><\/blockquote>\n

5. Last year we recall that Europasat were promising to launch a new 50Mbps service by the end of 2016. Can you tell us anything more about this, as well as how much faster we can expect Satellite broadband to become over the next couple of years and exactly how all this will be achieved?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

There is virtually unlimited satellite capacity in the sky, but obviously we have to take commercial decisions on how we productise that. We can certainly support 50 Mb\/s services now and do for Enterprise customers, but to commercialise consumer services at these speeds would currently make them look expensive and would mean larger, more expensive consumer kit. We feel our 30 Mb\/s products offer a good balance for consumers in terms of cost against performance, and they qualify for \u2018super-fast\u2019 status.<\/p>\n

The next generation of high throughput satellites currently in build and launching over the next three to four years will be so much more technically efficient. They\u2019ll be able to deliver something like three to five times the efficiency in terms of capex cost per bit of data passed over the network, and therefore we can clearly see a product roadmap where it will be normal for our off-the-shelf consumer tariffs to deliver 100 Mb\/s speeds, with virtually unlimited data plans even on ordinary consumer tariffs.<\/p><\/blockquote>\n

<\/p>\n

6. According to Ofcom<\/a>, the average fixed line home broadband user gobbles 82GB (GigaBytes) of data per month, which rises to 112GB for those with a “superfast<\/em>” 30Mbps+ capable connection.<\/strong><\/p>\n

One of the problems with satellite stems from the limited and expensive data allowances that customers often receive, which is in stark contrast to the “unlimited” options of fixed line platforms and that can be a problem in today\u2019s video streaming hungry market.<\/strong><\/p>\n

Can you tell us, why are the data allowances on Satellite so low and what sort of “affordable” allowances can we expect to see in a few years\u2019 time when new Satellites are launched?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

We scale our data plans to make the services affordable for the consumer and we have to keep in mind that each satellite has a finite resource in term of capacity and data throughput.<\/p>\n

We fully understand the customer\u2019s desire for unlimited or \u2018flat\u2019 data plans, and we\u2019re working towards that. But to deliver unlimited tariffs and ensure really good network performance with the current fleet of satellites would make the tariffs only affordable for businesses.<\/p>\n

Data allowances in terms of GB per \u00a3 have gradually increased over the last 5 years and will continue to do so. (See point above on next generation satellites and unlimited data becoming a reality).<\/p>\n

We also offer guidance on how best customer\u2019s can use their data allowance: https:\/\/www.europasat.com\/what-is-satellite-broadband-internet\/tools\/making-the-most-of-your-data\/<\/p><\/blockquote>\n

7. Speaking of usage allowances, satellite platforms often have to balance their usage just like fixed line services, which is sometimes done by imposing Traffic Management \/ Throttling measures (especially at peak times or when exceeding an allowance).<\/strong><\/p>\n

However one of the complaints we see about Satellite ISPs is that they don’t always make their Fair Usage Policies (FUP) or any excess charges clear or easy to find. Can you clarify, what is Europasat’s traffic \/ network management policy and is it the same for all of the Satellite platforms you sell?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

The fine detail of the Fair Usage Policies (FUPs) does vary between satellite owner\u2019s networks, and some are more open than others in the detail they allow us to publish or even share with us. Currently all the FUPs are all controlled by the satellite owners themselves.<\/p>\n

In reality, because the Internet is a fast changing, ever evolving, almost organic environment, these policies along with the traffic management and engineering strategies are continually changing literally weekly, sometimes even daily.<\/p>\n

We work very hard to keep network performance at the top of the agenda in our regular discussions with the satellite owners, and it\u2019s in everyone\u2019s interest for all our users to receive as equitable a service as possible. Working with the satellite owners we also do our best us to try to manage users who continually consume a disproportionate amount of network resources to ensure that they don\u2019t impact on the ordinary user.<\/p>\n

Our charging structure is clearly outlined on our website, and there are no hidden \u2018excess charges\u2019. All our customers choose their tariff at outset and these are differentiated by speed and monthly data allowance (or by data top-ups in the case of pay-as-you-go plans). Customers also know that from outset if they consume all their data allowance before their next month\u2019s allowance is credited, they can either upgrade to the next tariff, or buy more data 24\/7 via a simple \u2018Volume Booster\u2019.<\/p><\/blockquote>\n

8. Many popular online services (e.g. cloud computing, multiplayer video games, time sensitive VPN connections and web servers) simply cannot function properly or even at all without a very low (fast) latency connection.<\/strong><\/p>\n

Obviously latency is a problem for Satellite because data has to be relayed up into space and then back down again, which creates a significant lag (delay in milliseconds) that often makes services, such as those mentioned above, unusable.<\/strong><\/p>\n

Can you foresee any point in the future where Satellite operators might find a way to reduce the level of latency so that this is less of an issue and how might it be achieved? For example, would medium or low earth orbit Satellites play a part or is latency still a big problem for those too?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

Latency is a matter of sheer physics and isn\u2019t something that we can remove or change. However, we\u2019ve done a lot of work in the last 8 years to try to reduce the impact of the latency on everyday protocols like browsing, and VoIP, and to make both VPN\u2019s and cloud computing work well over our services.<\/p>\n

If a potential customer has a particular app or program they want to use and they think its performance may be impacted by satellite latency, we always invite them to come into the office, or to meet with one of our Resellers, to test it in a live satellite environment. Our technical and project teams have been deploying satellite broadband for many years, and we have some of the best known companies on earth as customers including the BBC<\/a>, many Police forces and the MOD. We are experienced in extracting good performance over satellite for many common business tools and will be delighted to assist customers in pushing the boundaries of what\u2019s technically achievable.<\/p>\n

We\u2019re developing new add-ons and software at the moment which will really enhance the user experience via caching, and also enable customers to make better use of their data allowances and these will be into the market later this year.<\/p>\n

First person shooter games are a challenge over satellite, but many ordinary games that aren\u2019t real-time critical work fine. We have always been up front about this and always try and get as much information from potential customers about what they want to use their connection for before recommending they go for satellite broadband.<\/p>\n

In reality, the latest generation satellite broadband solutions offer a user experience close to their wired counterparts, and it\u2019s important to remember satellite is designed to help homes and businesses that don\u2019t have many other options. We fully accept that if fibre broadband is available for a customer, they will probably want to opt that over a satellite based connection.<\/p>\n

Low earth orbiting satellites have a part to play in communications but tend to be very small, and can\u2019t deliver the kind of speeds, performance or coverage our geostationary fleet does, although in theory their latency is slightly less.<\/p><\/blockquote>\n

9. Satellite Solutions Worldwide, which owns Europasat, recently gobbled rival ISP Avonline Broadband in the UK. Aside from gaining a bigger customer base, can you tell us what other benefits will be extracted from this acquisition and will you be retaining the Avonline brand as a separate business or merging it into Europasat?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

Bringing Avonline into the fold enables a number of operational and sales efficiencies. The acquisition has made us Britain\u2019s biggest satellite broadband provider; doubling our customer base to 17,000 subscribers in the UK. It brings us closer to our aim of adding 100,000 homes to our overall network by the end of 2017 and we anticipate the acquisition will contribute \u00a35m to our sales in the next financial year. It our largest acquisition to date, and testament to the confidence we have in the UK market. We plan to retain the brand in the short-term and will consider merging it into the Europasat brand next year.<\/p><\/blockquote>\n

10. Finally, a lot has been said about the EU\u2019s new Net Neutrality rules and related guidelines being proposed by the Body of European Regulators of Electronic Communications (BEREC). What are your thoughts, from the perspective of a Satellite broadband provider, on these new rules?<\/strong><\/p>\n

ANSWER:<\/span><\/p>\n

Europasat broadly supports the concept of Net Neutrality, but although they listen to our and our customer\u2019s feedback, the satellite owners themselves make key policy decisions on their traffic management or traffic shaping policies.<\/p><\/blockquote>\n

We’d just like to thank Andrew Walwyn for agreeing to take some time out of his busy schedule in order to take part in our interview, which touched on some difficult topics.<\/p>\n","protected":false},"excerpt":{"rendered":"

The CEO of UK ISP Europasat (Satellite Solutions Worldwide), Andrew Walwyn, has told ISPreview.co.uk in our latest interview that the Government’s plan to introduce a 10Mbps Universal Service Obligation (USO) for broadband “cannot be satisfied” without subsidised Satellite technology.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[6],"tags":[471,77],"class_list":["post-12484","post","type-post","status-publish","format-standard","hentry","category-editorial_article","tag-bduk","tag-satellite"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nEuropasat Interview - Broadband USO is "unfeasible" Without Satellite - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The CEO of UK ISP Europasat (Satellite Solutions Worldwide), Andrew Walwyn, has told ISPreview.co.uk in our latest interview that the Government's plan to\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2016\/10\/europasat-interview-broadband-uso-unfeasible-without-satellite.html\" \/>\n<link rel=\"next\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2016\/10\/europasat-interview-broadband-uso-unfeasible-without-satellite.html\/2\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Europasat Interview - 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