align="right" border="5" hspace="3" vspace="3">
Leading satellite equipment
provider Scientific-Atlanta announced the combining of two of its three divisions, the
Satellite Networks division and the Communications & Tracking Systems division in
June. These divisions have been merged to strengthen the satellite business and expand
product lines. Barely three days after the company announced the re-organization along
with a few other major changes in the company’s operations, Raymond D Lucas,
the president of its satellite communications sector, spoke exclusively to Voice &
Data about what necessitated the change and the future strategies of the company.
Ray is the company’s chief
strategic officer responsible for business planning and new business development
activities. In 1991-92, he was president of network systems while continuing his strategic
planning responsibilities. Excerpts:
Bandwidth availability on satellites
is rising. Satellites are getting smarter with more and more onboard processing. The
merger of our two business units is a response to these global trends and also an attempt
to provide our customers with better integrated services and solutions.
Scientific-Atlanta has been in
the satellite business for 30 years. I believe there has been restructuring. Why is that
so?
Till recently, we had structured
our business as three separate divisions—Communications and Tracking Systems;
Satellite Networks; and Satellite Television Networks. Now, we are merging the
Communications and Tracking Systems and Satellite Networks.
Today, we do not think that it is
good enough to be either only a voice or a data communication company. What customers are
looking for is not just voice or data networks, but end-to-end communication systems. If
we look at our E-mail system, increasingly the size of the E-mail file/attachments is
becoming larger. It is very common to have a power point presentation or a video-clip
attached to these mails. So, it is not the computing power, but the communication
requirements which are driving the growth of the high-speed high-bandwidth LANs and WANs.
Hence, it is both the technology and market forces which are driving this merger.
What are the implications of this
merger world-wide?
The market is changing,
world-wide. Data rates are going up and costs are coming down in the satellite world.
Satellite has traditionally been seen as a high-cost WAN alternative. But this is
changing. Bandwidth availability on satellites is rising. We have low-cost satellite
dishes. Satellites are getting smarter with more and more onboard processing. We believe
that the merger of our two business units is a response to these global trends and also an
attempt to provide our customers with better integrated services and solutions. With the
merger of these two divisions, we have a much larger and diverse engineering team in-house
under one roof. We shall be able to provide our customers with the next generation of
architectures much faster.
alt="https://img-cdn.thepublive.com/filters:format(webp)/vnd/media/post_attachments/144f5ffb87fa7589a17dddd6ffe7a504f1544d00d5b58d754c5cbc1b8a9c0e66.jpg (9954 bytes)" align="left">What is
the implication of this on your India strategy?
India is a unique market. It has
a fairly advanced high-technology industry, but the basic telecommunication infrastructure
is lacking. With new communication technologies like fibre and wave division multiplexing,
we should see rapid technology growth in this country and we believe satellites will help
in leapfrogging.
Do you see the nuclear blasts as
a constraint to your India strategy?
Yes, the blasts will be a bit of
a constraint, though to what extent we do not really know at this point of time. The
Indian government is a big buyer and we do not know what effect sanctions will have on
them. We would like to wait and see. The nuclear blasts apart, the policy domain in India
is a bit constraining. For e.g., VSAT networks are not allowed to be connected to PSTN.
India is a big potential market for Internet services. Internet is also facing similar
access issues. We think that the policy should allow inter-connectivity.
What are the trends in the
satellite business from technology and geographic perspectives?
As far as geography is concerned,
the growth has been a world-wide phenomenon. The Latin American, European, and
Asia-Pacific markets have grown. The applications which drive individual markets may be
different. One of the major drivers in some markets has been digital television networks.
One clear observation is that transponder space world-wide has grown.
As I have said earlier, data
capacity is going up, bandwidth availability is increasing, and costs are coming down.
Larger constellations of satellite systems like Iridium are coming. I believe India is
participating in these. Organizations which are providing equipment and service will have
to be a part of the consortium. The media access protocols supporting these constellations
are proprietary. We have seen MEOs, LEOs, and now we are seeing Little LEOs.
What are Little LEOs and where
are they used?
Little LEOs support low data
rates and allow for the usage of low-cost terminal-end equipment. The satellite dishes
here cost a few hundred dollars versus the traditional VSAT dishes that cost a few
thousand dollars. Little LEOs could be used for telemetry, for tracking assets, rail cars,
trucks, and so on. It could find applications in the oil, power, and the transportation
sectors to name a few. We believe that this could be a whole new market opportunity for
India.