The future of cable and satellite operators – why there’s no need to fear the rise of 5G

Niall Hunt, Broadband World Forum

In the second of a series of articles in advance of this year’s Broadband World Forum, Niall Hunt, the digital content lead for the event, explores how preparations for 5G are progressing. This time he focuses on cable and satellite operators.

If there’s one message that should resonate for all types of operators – fixed, mobile and converged alike – it’s that the full potential of 5G cannot be realised by one technology alone. Instead, a suite of technologies will be needed.

What this means is that, even the so-called legacy infrastructure of satellite and cable operators will have a role to play in the future. Indeed, these operators bring certain advantages that will prove useful as 5G continues to develop.

After all, there is no single best answer to affordably connecting people. For example, in a mountain village satellite or wireless infrastructure may be the most suitable option, whereas dense urban areas provide a strong business case for fibre. It all depends on the environment.

Combinations of technologies, including cable and satellite, will therefore be around for some time. Implementing a suite of technologies that includes what some might call ‘legacy’ networks can already deliver services up to a gig per second and this will only improve as the various technologies evolve over the coming months and years.

So, what does all this mean for the role of cable and satellite operators in the future of 5G and what steps do they need to take to make sure they are prepared?

Far-flung connectivity
The majority of the focus for 5G has so far been centred around urban areas and major cities, with densely packed communities seemingly having the most to gain from the speed and capacity benefits that 5G offers.

However, the impact of 5G is by no means limited to urban markets. Rural communities and businesses operating in remote regions that depend on wireless connectivity will also be greatly impacted by the 5G rollout, with satellite operators in particular set to play a vital complementary role in connecting these outlying individuals and devices.

Satellite networks can help to bridge the digital divide between urban and rural communities by reaching the areas that other operators simply can’t, although there are some questions that will first need to be answered. For example, what exactly does the 5G era look like for these far-flung end-users? Are there actual 5G deployments planned? Or, will 5G free up more 4G and 3G resources to dedicate to remote customers?

To answer these questions, operators will have to take a close look at the current capabilities of their networks and the requirements of rural areas – both current and in the future. Initially, work will be needed to improve latency but, with new technologies opening up new possibilities all the time, satellite and cable operators are in a good position to significantly improve the customer experience.

Current cost-density curve analysis shows that satellite connectivity becomes the most economical way of serving rural areas below a certain population density threshold and this will not change with 5G.

Far from being left behind, cable and satellite operators offer innovative and cost-effective solutions to some of 5G’s major challenges.

Satellite strengths
Recent developments have highlighted the benefits and merits of satellite networks. Technological advances such as low-Earth orbit constellations, decreasing launch costs and increasing capacity can all collectively move the threshold higher in terms of density.

What’s more, although there are long-term goals to replace the digital-terrestrial transmission infrastructure with 5G in many countries, public service broadcasters will hold out for universal broadcast coverage in rural communities.

This puts cable and satellite operators in a strong position, as they will continue to be efficient providers of broadcast services. Video content provides a prime example. Far from declining in the face of competition from over-the-top distributors, operators have predicted that satellite will remain a dominant platform for video distribution well into the next decade due to three key advantages – cost efficiency, universal reach and service quality.

According to recent research from European satellite provider Eutelsat, satellite is stable to growing in developed markets, while growth is accelerating in most emerging markets. It also expects the satellite market share of TV homes will rise 2 percentage points to 26% by 2030.

Nor does it view 5G as a business threat. “Satellite is now, and will be in future, a good solution for backhauling in some areas where the cost to transport data through terrestrial means (fibre or microwave) is high,” says Eutelsat director of strategy Jean Hubert Lenotte.

There are of course inherent blind spots with satellite technology, notably the lack of a return path which will likely require providers to offer hybrid satellite and internet distribution networks.

Ultimately, cable and satellite operators need not fear the approach of 5G. They are actually in an extremely strong position and will likely evolve to become important players in the 5G ecosystem.

Many operators have already realised this. The challenge for the rest is to embrace the changes coming their way and put themselves in a position to capitalise on the future of connectivity.

Discover more about what 5G means for converged operators at Broadband World Forum on the 23-25 October at the Messe, Berlin. It is the only event that brings together all the key players and building blocks of network technology.

Explore the exhibition with a Free Visitor Ticket and get access to more than 150 top level vendors, including Huawei, Nokia and many more. Find out more here.

Or purchase a Delegate Pass for full access to the conference and exhibition, giving you access to all keynotes and all four focused tracks. Discover more here.

 

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