Page 109 - SAMENA Trends - March-April 2022

ARTICLE SAMENA TRENDS

Traditionally, satellite connectivity wasn’t actual case study of an anonymous This translates to over 200 percent top-line
even considered for cellular backhaul given cellular backhaul service provider we’ll call revenue growth and a 360 percent increase
its high costs — but times have changed. CBH. In this example we are using order- in monthly profit, resulting in an extended
Now, thanks to several proprietary of-magnitude data based on real customer footprint reaching an additional 60,000
technical innovations, small and low-cost conversations. Before selecting Astranis new wireless users while maintaining a
MicroGEO communications satellites MicroGEO, CBH served 150 cell sites lower cost per site.
from Astranis can dramatically reduce and their operating cost structure was
the cost of bandwidth. This is possible dominated by the high price of bandwidth. MicroGEO oers a compelling price point
because MicroGEO satellites are purpose- CBH amortized capex for new site bringup and business model that has caused
built to target bandwidth into a specific over an eight-year period, and bandwidth telcos and internet service providers to
geographic region, like the state of Alaska, leasing fees represented over 70 percent reconsider their stance towards satellite
or a medium-sized country like Peru. of total monthly costs. This limited CBH’s backhaul.
growth — it didn’t justify a risky, high-
With a MicroGEO satellite, operators get opex strategy, so CBH couldn’t expand the Legacy satellite bandwidth is expensive,
the bandwidth they need, right where they number of sites that they cover. undermining the business case for
need it. This compact form factor is perfect expanding coverage into rural and remote
for piloting new markets and market By switching to MicroGEO, CBH was able locations. With Astranis, a new era is here:
segments, and additional MicroGEO to secure middle-mile bandwidth at a more not only can service providers enable
satellites can increase capacity to meet than 75 percent discount compared to cellular backhaul at an aordable price, they
demand once the business case has been their legacy coverage. Making the switch can do so with custom-built MicroGEO
proven out. to lease a dedicated MicroGEO satellite satellites dedicated to their business
from Astranis allowed CBH to expand to success.
For illustrative purposes, consider an over 600 sites without increasing opex.

109 MARCH-APRIL 2022