$/MHz vs. $/Mbps…Why is this important?
$/MHz & $/Mbps - Technology jargon or
business parameters? The answer is: $/MHz
could be only some of the cost and $/Mbps is the
total cost but might compromise quality, but let us
explain in more detail.
For clarity and reference we will have to provide a
broader meaning to these terms before we will be
able to analyze the difference between the two
definitions.
MHz. Refer to figure 1. In this context Mega Hertz
(MHz) is a measurement parameter that defines
the amount of satellite capacity that is used or
supplied to the customer, also referred to as the
satellite frequency bandwidth or satellite space
segment. It defines the window of frequency
spectrum on the satellite that is supplied to the
user in terms of the contract.
For example: Each transponder in the satellite has
a total frequency bandwidth – or span – of 36MHz.
The example depicts 2 transponders, the first
starting at frequency 3720MHz and the second
starting at 3760MHz – that is 36MHz plus 4MHz
guard band away from the start of the first
transponder.
The 36MHz available frequency window on each
transponder can be used very differently. In the
case of transponder 1 the total band – 36MHz – is
used for a wide band signal, typically a DVB
broadcast outbound signal. In the case of
transponder 2, the 36MHz has been divided to
provide 4 channels each being 9MHz wide which
could be applications such as Internet Access
Transponder 1 Transponder 2
3720 MHz 3760 MHz
36 MHz 4 MHz 36 MHz
36MHz channel
Satellite transponder frequency & channel plan in terms of MHz
Ref: q:\..\Marketing\Media\ $/kbps…Who changed the rules?
December 03
services.
Mbps. Mega bits per second (Mbps) refer to a
totally different concept, namely the maximum
speed of data throughput available over the
satellite link. This definition applies to the total
number of data bits that can be transmitted per
second over the complete communication links
which includes the satellite segment, the Internet
access port, hub equipment, remote terminal
equipment and customer premises equipment.
Clearly this definition includes all the system
parameters and provides a more complete
definition of total available service.
Modulation is the missing part in the analyses
and forms the critical relationship between Mbps
and MHz and is also the reason why these terms
are used in such a confusing manner.
Modulation is the process whereby a data signal,
or voice signal, is mixed with a radio frequency so
that the data signal can be sent over long
distances using the radio frequency as a carrier.
General applications are like a cell phone that
modulates voice signals so that it can be
transmitted through the network to a remote
receiver, which performs the reverse function.
Without going into too much detail, the modulation
process is responsible for changing data signals
which are measured in Mbps, into satellite signals
which are measured in MHz and which can be
transmitted over the satellite to provide the
communication link.
4x 9MHz channels
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In satellite networks the most important design
objective is to use the minimum space on the
satellite while at the same time transmitting the
maximum data speed through the satellite. Very
specific engineering effort is spent on this matter,
which is mostly dealt with by performing link
budget calculations.
The Mbps : MHz ratio is the key parameter that
determines the overall efficiency of the network but
also seriously determines the reliability of the
networks. For standard SCPC networks this ratio is
typically 1:1, i.e. 1Mbps data signal occupies 1MHz
of satellite capacity. However, it is also possible to
design and implement networks that uses ½ the
amount of satellite bandwidth – these will be much
more efficient in terms of bandwidth and can be
offered at much lower cost but these designs
seriously compromise reliability and signal quality.
The design optimum for most systems is a 1:1
ratio, i.e. 128kbps data signal occupies 128kHz
and in this case the term $/Mbps and $/MHz can
be interchanged and the commercial meaning will
remain the same.
However, as the market develops and competition
increases, network operators are pressed to
investigate all possibilities to decrease costs.
Under these conditions there is a risk that the
engineers will compromise quality in favour of
increased satellite efficiencies.
$/MHz is thus a definition of the cost of the
satellite bandwidth. This definition is absolute and
specifies the cost of the satellite capacity on a per
MHz basis.
However, a $/MHz contract value is only for the
satellite portion and excludes any Internet access,
Ref: q:\..\Marketing\Media\ $/Mbps vs. $/MHz, Why is this important?
January 04
teleport equipment and services, etc. These
contracts are mostly applicable to Network
Operators who then add the other network
components in order to obtain the total cost of the
service.
$/Mbps defines the costs of a communication link,
and this definition includes all the network
components and specifies the cost in terms of data
transmission ratio.
This price parameter is most suited when offering
a service to the market and is also generally used
by Network Operators servicing the market.
However, this price parameter does not define or
specify the amount of satellite capacity that is used
to offer the service and hence the end-user has no
indication of the link reliability and performance
parameters.
In conclusion it is recommended that the principle
differences between these priced parameters be
understood and that offers be evaluated with a
clear perspective of all issues.
This is however a matter that relates to many
aspects and forms an intricate part of the satellite
network operations, which cannot be easily
simplified. Most importantly is to appreciate these
different aspects and to develop a trustworthy
relationship with a network provider and not to
simply select the lowest provider based on a single
price parameter.
(Next month: The total cost of ownership of a
VSAT service)
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