VSAT Amsterdam - HTS - Is there any Future for VSAT Service Providers?

Tuesday 3 September 2013
VSAT Amsterdam - HTS - Is there any Future for VSAT Service Providers?


by Serge Van Herck, CEO Newtec.
With the introduction of the first Ka-band High Throughput Satellites (HTS) in the US and Europe now a few years ago, it becomes clear that VSAT service providers who were traditionally providing services in those regions are now heavily struggling in order to survive this major industry transformation and threat.

HTS - today a threat for many VSAT service providers

So why is it that such a promising technology is now threatening the existence of those VSAT service providers?

HTS inherently provide the promise of much lower transmission costs and much higher transmission capacity. The answer lies in the fact that the value chain has changed profoundly in the US and Europe. Were previously VSAT service providers were able to create and differentiate their own services, they are now facing major HTS network service providers that became heavy competition. VSAT service providers were used to  buy their satellite capacity and VSAT equipment from satellite operators and VSAT technology vendors, but with the introduction of the first HTS networks the world changed.

Due to the inherent network design of those initial HTS networks using geographically spread gateways, VSAT service providers can’t use their teleport infrastructure any longer, can’t lease space segment on those HTS networks and are therefore facing a competitor they can’t win from.

HTS – VSAT technology vendors have transformed into fierce competitors

The irony of this all is that those VSAT technology vendors as HNS and Viasat, who initially were the key vendors to those VSAT service providers, have now evolved into VSAT service providers and more recently into satellite operators themselves!

They have dramatically changed the whole value chain and are now threatening on one side the existence of the VSAT service providers, their previous customers, and on the other side they are putting satellite operators under pressure, their previous suppliers, as they are launching their own satellites.

VSAT2013 Conference in Amsterdam

On September 18th, I shared my view of the future. Check out my presentation on the fundamental question "Is there any future for VSAT service providers?".

Best regards,

Serge Van Herck


David wrote

I like to educate myself more about High Throughput Satellites (HTS) technology. Please advise sources.

Tom De Baere (@tomdebaere) wrote

Hi David,

I would you suggest you start with Wikipedia. Next step would be to study the different types of HTS satellites that exist and their differences. Some satellite operators publish a lot of details and have blogs running about what they are doing with HTS.

Let us know if you need more info. Glad to help.


Kerstin Roost wrote

Hi David,

As we've received similar questions, we will run in the very near future a post on HTS plus presenting one outstanding solution together with a video interview with one of our partners giving more insides.

So stay tuned; Kerstin