The economics of integration of DVB‐S with terrestrial technologies and the role of dynamic bandwidth management

This paper presents the technoeconomic aspects of network solutions based on integration of satellite and terrestrial, based on ADSL, WLAN and DVB‐T technologies, architectures. Following a discussion of the general deployment context, the business case framework is described in terms of areas served, services offered, tariffs, demand assumptions, as well as network architecture and dimensioning rules. The key cost items are presented and economic estimations are provided in the case of telecom operators, which integrate satellite bandwidth with terrestrial technologies in different area types. The evaluated business cases have shown that the satellite rental cost (airtime cost) level is one of the most critical parameter for the economic indicator of present value. Therefore, agreements with satellite operators for spectrum usage will give operators space for business opportunities and acceptable profit margins. In addition, dynamic bandwidth allocation schemes can exploit the aggregated traffic within satellite transmission, which can benefit satellite, telecom and cable operators offering entertainment on broadband business as well as new entrants in broadband business, equipment vendors, broadcasters and TV companies. Copyright © 2007 John Wiley & Sons, Ltd.