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NASA Technical Reports Server (NTRS) 19940018355: A practical system for regional mobile satellite services PDF

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N94-22828 A Practical System for Regional Mobile Satellite Services Randall Glein, Denis Leverson, and Dean Olmstead Hughes Aircraft Company Bldg. $64, MS B433 P.O. Box 80002 Los Angeles, CA 90009, USA Telephone: (310) 364-6808 Fax: (310) 364-5545 ABSTRACT This network architecture consists of two MSAT satellites (Figure 1, Table 1), satellite The Regional Mobile Satellite (MSAT) control facilities, various earth stations, and the concept proposes a worldwide, interconnected end users' mobile and fixed terminals. These mobile satellite service (MSS) network in which components are common to any Regional MSAT-type satellites provide the space segment MSAT system. services to separate regions (i.e., one or a few The North American system's coverage countries). Using this concept, mobile commu- spans the entire United States, Canada, Mexico, nications users across entire continents can now Puerto Rico, the Virgin Islands, and the be served by a handful of regionally controlled Caribbean (Figure 2). A user anywhere within satellites in geostationary earth orbit (GEO). this range can place a call from his or her All requirements, including handheld telephone capabilities, can be cost-effectively provided 111 using proven technologies. While other con- cepts of regional or global mobile communica- L-BAND RECEIVE tions continue to be explored, the Hughes REFLECTOR Regional MSAT system demonstrates the near- term viability of the GEO approach. L-BAND TRANSMIT REFLECTOR\ REGIONAL MSAT--A NORTH AMERICAN EXAMPLE Since the advent of mobile communica- tions, users have enjoyed steadily increasing freedom from the constraints imposed by hard wire. Unfortunately, mobile communication has ND been limited by the height and range of radio ANTENNA towers. But now, high-power regional mobile satellites eliminate these restrictions. HS 601 BUS North America, with its highly developed / \ cellular infrastructure, has become a natural first candidate for a regional mobile satellite system. When its MSAT system is launched in 1994, the / SOLAR ARRAY team of American Mobile Satellite Corp. (AMSC) and Telesat Mobile, Inc. (TMI) will J show how entire continents can be served by the high-power spot beams of GEO satellite systems. Figure 1. Regional MSAT Satellite PItKC;ED_r_G PAGE" BLANK NOT FR.MED 543 Table 1. Regional MSAT Space Segment compression technology, allowing reduced chan- Summary nel spacing, can be incorporated as they occur with minimal impact. Spacecraftbus HS 601 Dryweight 2500 Ib This is how the technology is being put to EOLpower 288O W use in the North American mobile communica- L-bandantennas Two 6 x 5 m deployable tions market. But the advantages of this system mesh reflectors can be applied in regional markets anywhere in Ku-bandantenna 1 m shaped reflector the world. L-bandfrequencies 1530 to 1559 MHz, t631.5 to 1660.5 MHz L-bandAEIRP 56.6 dBW at 18 dB NPR ADVANTAGES OF A GEOSTATIONARY L-bandG/T 2.7 dB/K (CONUS) MSAT ARCHITECTURE Eclipsecapability 85% Servicelife 12 yrs Mobile satellite communications is not just a novel technology application; it is a busi- ness opportunity with significant potential for profit. The financial practicality of a Regional MSAT system is one of its most attractive attributes. Though a GEO satellite may cost more per satellite than a medium earth orbit (MEO) or low earth orbit (LEO) satellite, only a single GEO satellite is required to provide com- plete regional coverage. This translates into system costs dramatically lower than other , architectural alternatives [3]. The Regional MSAT offers inherent flexi- Figure 2. Approximate North American bility and modularity. Using high-power spot Coverage Pattern beams, it can be tailored to meet the needs of any specific region. This allows the GEO system to mobile terminal. A dual-mode handset allows be planned and implemented independently of users who are within range of a cellular system global developments. A Regional MSAT applied to have their calls routed through the land-based in Asia, for example, will have entirely different cellular network while calls from users outside requirements than a system developed for South of their home cell site are automatically routed America. Yet the two systems can use compati- through the satellite system. ble ground hardware and be interconnected using Once the call enters the satellite system, existing facilities. one of two Network Control Centers (NCCs) The payload design of the Regional MSAT determines where and how to route the call. satellite also provides a high degree of flexibili- The NCC monitors the entire ground network ty. The design of the hybrid matrix amp!!fica- [1], choosing the appropriate private or public tion system enables power to be dynamically gateway, assigning communications channels, shared among the various beams. This allows and routing the call to achieve the most cost- any variation in traffic patterns to be accommo- effective communications link. The NCC can dated through real-time allocation of total power optimize resources and maintain service quality among the beams. This approach provides the at the same time [2]. most efficient use of capacity based on user The system uses proven technology to geography and population density over the life accommodate a wide variety of mobile termi- of the system. Additionally, the Regional nals. Its architecture, however, allows new tech- MSAT provides the ability to tailor coverage by nologies to be easily incorporated as they shaping the spot beams to serve only the areas become available. New services can be imple- that have the greatest demand. No power is mented with no impact to the quality of the exist- wasted directing coverage beams over unpopu- lated or unwanted areas. ing service. For example, advances in speech 544 The system also efficiently uses the frequen- tions in two distinct ways: the dual-mode hand- cy spectrum. It employs frequency reuse between set and the pocket phone. nonadjacent beams with sufficient isolation. In The handset used in the MS.AT system is addition, with power-limited capacity expected to capable of automatically operating in two modes: be roughly 2,000 simultaneous 4.8 kbps voice As a regular cellular phone linked to the region's channels, the total bandwidth requirements allow cellular infrastructure or as a direct link to the multiple GEO systems to coexist within the allo- satellite. This dual-mode handset increases ver- cated L-band MSS spectrum. satility and ease of user operations. When users are within a cell site, the mobile earth terminal APPLICATIONS IN A REGIONAL MSAT (MET) directs the call to the cellular system. SYSTEM When outside of a cell, the call is routed through the L-band transceiver in the MET. This func- A Regional MSAT system can meet a tion is autonomous and transparent to the user. myriad of service demands, from personal com- One model of the dual-mode phone will munications to industry-specific applications to also have the capability of being a handheld infrastructure development (Figure 3). It aug- portable cellular phone (Figure 4). When inside ments existing cellular networks by providing a cell site, the handset for this model can be service when users roam outside of their cover- detached and used as a normal portable cellular age areas and expands them by serving uncov- telephone. ered areas. Thus, the Regional MSAT is Now imagine that a handset can be discon- inherently appealing to both the cellular roamer nected from the MET and operated when the and the unserved rural mobile user, two of the user is beyond the reach of a terrestrial cell site. largest segments of the satellite mobile commu- This is the Regional MSAT pocket phone con- nications market. The system meets these cept. With the pocket phone, satellite transmis- users' need for personal, handheld communica- sion and reception is conducted via a cordless •-"AN IEARS TAOT., _N _ FEEAERDTEHR-SLITNAKTION ]J IPUB(GLIACTESWWAIYTSC)HED I ITELEPHONE COMMUNICATIONS ICELLULARBACKBONE NETWORK [ CONTROLLER INETWOROKR OPERATIONS CENTER Figure 3. Regional MSAT System 545 EXTERNAL HANDHELD PORTABLE CELLULAR PHONE HANDHELD PORTABLE '_1_" REMOVABLE LEAD TO EXTERNAL CRADLE ANTENNA Figure 4. Multimode Phone connection between the handset and the MET. truly private network can operate their own Users need only stay within range of their MET gateway and ground station infrastructure "base station" to complete their links to the satel- including a dedicated link to the satellite. Both lite, a position they are most likely to be in if types of services are very attractive to private they are beyond the reach of cellular communi- sector organizations that have large numbers of cations. These capabilities give a Regional users, as well as government and public sector MSAT system the ability to meet the variety of organizations such as the police, public utilities, personal communications needs seen in the mar- and agencies responsible for developing a coun- ket today, and in the foreseeable future. try's natural resources. In areas where the traditional land-based Regional MSAT applications reach well communications infrastructure is still in devel- beyond personal voice communications. One of the largest applications in the North American opment, a Regional MSAT system provides excellent access into rural area_s that even fixed system is for the trucking industry. The MSAT system allows each vehicle to be in constant con- satellite services (FSS) cannot economically tact with a home base, customer, or destination. serve. When the cost of building an infrastruc- This is especially useful for just-in-time deliver- ture is prohibitive, FSS-provided thin route ser- ies, in-route itinerary changes, and roadside emer- vices can be cost-effective, except when service gencies. Mobile terminals can be equipped with demands are extremely low. In this case, MSS Global Positioning Service (GPS) or RS-232 provides a cost advantage over even FSS-deliv- ports to allow voice, digital data, and positioning ered telephone service. services to be provided. Similar applications exist for the airline and rail industries, where reli- REGIONAL MOBILE SATELLITE SYS' TEM ECONOMICS able logistical communications are essential while in route and many passenger telecommuni- cations services are being increasingly demanded. To assess the business viability for a The system's architecture also accommo- regional MSS system, we must understand the dates private networks. Users can implement a economics from the perspective of both pur- virtual private network if they need that level of chasing and providing service. In its initial autonomy in their service. Users demanding a form, the MSAT system in North America will 546 providemobileterminalsforunder$2,000each wheretheaveragesubscribeirsassumedtospend andoffervoiceserviceratesthatarecompeti- $100permonthonmobileservicesw, hichcould tivewith existingcellularroamingcharges. includevoice,data,oracombination.This Overtime,asthesubscriberbaseexpands,these amountisassumedtoincludeusageandmonthly costsarelikely todecreaseandbecomeafford- accessteesthatmaybecharged. abletomorecustomerst,husincreasingdemand Thenumberofsubscribersisassumedto formobilesatellitecapacity.Theintroduction increaselinearlytoamaximumlevelof400,000 of RegionalMSATsystemsaroundtheworld users,basedontheassumptionsof 10,000min- will expandthemarketforspacesegmentt,er- utesperchannelpermonth,apower-limitedsys- restrialnetwork,andsubscriberhardware, temcapacityof2,000simultaneouschannels, whichwill translateintofurthercostreductions andaverageusageof50minutespersubscriber totheultimateconsumersoftheservices. permonth.Thismaximumlevelofsubscribers Fortheserviceprovider,theeconomics isachievedinthefifth yearofoperationsafter revolvearoundthestart-upcapitalexpensest,he launch.Theanalysisalsoincludesa2%sub- revenuesderivedfromsubscribersa,ndtoa scriberchurnratepermonth,whichisthe lesserextent,theannualoperatingexpenses monthlyturnoverofsubscriberswhodropthe requiredtorunthebusiness.Fromanorganiza- service.Thisimpactsbothrevenuesandmar- tionalstandpoint,theMSATarchitectureallows ketingexpenses. variousdegreesofverticalintegration.For Finally,it isalsoassumedthatthesystem example,independensterviceproviderscan providercapturesonly80%of thetotalrev- providetheinterfacebetweenthespaceseg- enues.Theremainingrevenue,inadditionto mentproviderandthemobileusers.Thespace thenewsubscribermarketingexpenses segmentprovidermaybeawholesalerofsatel- describedabove,isdistributedamongother litecapacity,ormaydirectlyserveendusers, independensterviceprovidersfortheirrolein largeorsmall. signingupnewsubscribersandadministering Thefollowingeconomicanalysistakesthe billing services. perspectiveofaspacesegmentproviderwho Theresult,onapre-taxbasis,isaninter- providesretailservicesdirectlytomobilecom- nalrateofreturntothesystemproviderof municators. approximately20%. Assumingacapitalcostof Capitalexpensesof$400Mareassumed, 15%,thisscenarioresultsinanetpresentvalue whichincludesonehigh-powersatellite,a (NPV)of roughly$135M. Financingisnot launchvehicle,launchinsurancea, ndsupport- included,thusthereturnsmaybeunderstated inggroundinfrastructuresuchasatelemetry becausepotentialleverageeffectsresulting andcommandfacility andmobilecommunica- fromdebtfinancingarenotaccountedfor. tionsnetworkcontrolfunctions.Theseexpens- Additionally,thisscenarioresultsinapayback esareall incurredduringathree-year periodonthecapitalinvestmentinjustover constructionperiodbeforesatellitelaunch. 5yearsafterlaunch.Notealsothatthisanalysis Theannualoperationael xpenseasrebro- assumeslaunchofonlyonespacecraftw, hich kendownintotwocategories.Firstisavariable eliminatesopportunityforgrowthafterachiev- expenseformarketingthatisbasedon$300for ingsystemcapacity,thuslimiting financial eachsubscribearddedtothesystemplusafixed returnswhichcouldbeexperiencedbyaccom- percentag(e10%)ofrevenuesthatisdesignated modatingmoreusers. forgeneralpromotionandmarketingofthevari- Thebusinessriskof thissystemislow, ousmobileservices.Thesecondcategoryisa basedonthepopulationthatcanbecovered fixedexpenseequalto20%oftheoriginalcapi- fromasingleGEOsatellite.Withacapacityof talexpensesperyeartoaccountforotheroperat- 400,000users,thistypeofsystemneedbe ing,general,andadministrativeexpenses.These adoptedonlybyasmallpercentageofthepopu- assumptionasrebasedon,butnotidenticalto, lation.Forinstancei,naregionofonebillion thecellularbusinessmodelofreference[5]. people,apenetrationrateofonly0.04%will fill Revenueasregeneratedonanindividual thesystem,whereasaregionwith250million subscribebrasisoverthetwelve-yeasratellitelife, peoplewill needtobeadoptedby0.16%ofthe 547 population.Thesefiguresseemmorethanplau- REFERENCES sibleevenwhenthepredictedavailabilityofcel- lularcapacityisusedtolimit theaddressable [1] J. Lunsford, R. Throne, D. Gokhale, W. marketsize. Garner, and G. Davies, "The AMSC/TMI Thiseconomicanalysisisnotintendedto Mobile Satellite Services (MSS) System representtheonlywaytoimplementaregional Ground Segment Architecture," A Collection of mobilesatellitebusinessb,uttodemonstrate Technical Papers, Part 1; The 14th thataRegionalMSATsystemingeostationary International Communication Satellite Systems orbitoffersthepotentialfor lucrativereturnsto Conference and Exhibit, March 22-24, 1992, investors.Inaddition,therevenueof $100per Washington, DC, pp. 405-426. subscriberpermonthcanbeinterpretedas$50 [2] L. White, A. Agarwal, B. Skerry, B. Tisdale, inaccessfeesandanaverageofonly$1.00per "North American Mobile Satellite System minuteofusage,whichissignificantlybelow Signaling Architecture," A_Collection of thoseratesexpectedwith alternativesystem Technical Papers, Par/1; _The 14t h .:_ architectures. International Communication Satellite Systems Conference and Exhibit, March 22-24, 1992, CONCLUSIONS Washington, DC, pp_ 427-439, ..... [3] B. Elbert, E Louie, ";Fhe Ec0nomicsof The mobile communications market is one Mobile Service by Satellite," Proceedings of the of the fastest growing segments of the global Second International Mobile Satellite economy. Technology that exists today is fully Conference, IMSC "90, Ottawa, Ontario, capable of supporting mobile communications Canada, June 17-20, 1990, pp 1875-1885. for entire geographic areas. Through a GEO [4] D. Whalen, G. Churan, "The American satellite system, MSAT developers can tailor an Mobile Satellite Corporation Space Segment," open systems architecture to meet the unique A Collection ofTechnicaIPapers, Part 1; The 14th International Communication Satellite needs of a specific region's mobile communica- tions users. In time, as new technologies Systems Conference and Exhibit, March 22-24, become economically viable, a Regional MSAT 1992, Washington, DC, pp. 394-404. system can evolve, eventually providing direct- [5] E. Kwerel, J. Williams, "CHANGING to-handheld global communications coverage. CHANNELS: Voluntary Reallocation of UHF With virtually unlimited applications available Television Spectrum," OPP Working Paper No. today at a cost-effective rate, the Regional 27, Office of PIans and Policy, Federal MSAT provides a practical--and affordable-- Communications Commission, November 1992. choice for introducing mobile voice and data services to regional mobile satellite service markets around the world. 548

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