Broadband Satellite ISPs Criticised
Posted: 05th Mar, 2003 By: MarkJ
It's fair to say that broadband satellite ISPs can not replace the likes of broadband ADSL, Fixed Wireless or Cable Modem services.
The hardware costs are often excessive, monthly rates can be very high and service versatility is simply not comparable to land-based alternatives.
They do still provide a useful stop-gap for those that absolutely have to have broadband and can't get the others. However one analyst has made it clear that business users should be cautious, especially following the recent failure of Isonetric:
IT managers should be cautious about signing over-long contracts for satellite internet services, an analyst has warned. Andrew Harris, senior consultant at Analysys Consulting, predicted that satellite providers would find it hard to compete in populated areas.
"Satellite broadband is inherently limited by the underlying cost structure of the service; competing successfully with DSL and cable in populated areas is extremely difficult," he said.
IT managers should consider their choice of service provider carefully, Harris advised. He warned of "a level of risk in taking service with a new entrant operator who is reselling a service."
The VNUNet item goes on to highlight the danger of lengthy contracts. Its also worth remembering that the coverage of broadband services, such as ADSL, will not always be so poor.
The hardware costs are often excessive, monthly rates can be very high and service versatility is simply not comparable to land-based alternatives.
They do still provide a useful stop-gap for those that absolutely have to have broadband and can't get the others. However one analyst has made it clear that business users should be cautious, especially following the recent failure of Isonetric:
IT managers should be cautious about signing over-long contracts for satellite internet services, an analyst has warned. Andrew Harris, senior consultant at Analysys Consulting, predicted that satellite providers would find it hard to compete in populated areas.
"Satellite broadband is inherently limited by the underlying cost structure of the service; competing successfully with DSL and cable in populated areas is extremely difficult," he said.
IT managers should consider their choice of service provider carefully, Harris advised. He warned of "a level of risk in taking service with a new entrant operator who is reselling a service."
The VNUNet item goes on to highlight the danger of lengthy contracts. Its also worth remembering that the coverage of broadband services, such as ADSL, will not always be so poor.
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