(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
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| More Businesses in Japan Use Satellites to Tap Internet
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October 26, 1998 (TOKYO) -- The basic infrastructure now exists in Japan
to enable business users to distribute data over the Internet via communications
satellites.
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Conventional networks have difficulty coping with applications which
involve transmitting large volumes of information at high speeds, such
as when handling image and voice data.
Satellites make it possible for the bottlenecks in these existing networks
to be bypassed.
Back in August, Mycal Corp., a major retail company, started using satellite
connections for part of its in-company intranet. Another companies also
launched a new membership-based service targeted at specific individual
users, selling raw data and computer software.
Satellite Internet Services Become More Common
Satellite Internet services use satellite links to allow both ordinary
Internet users and people using company intranets to benefit from greater
data transmission speeds. Conventional lines are still used when users
access their Web server (upstream use), but satellites are employed
when they want to download data from the server (downstream use).
Satellite Internet services have actually been
available in Japan since January 1997, when Space Communications Corp.
first launched its service, and 1998 has seen large-scale operators
entering the market in rapid succession (See table).
Recently, more specialized services catering to business users have been
appearing. For example, both Space Communications and Direct Internet
Corp. (DIC) have recently improved their services, the former in August
and the latter in September, in an effort to attract more business.
The two companies have upgraded service access software, and it is now
possible for users who have their PCs hooked up to the Internet via
leased lines to make use of the services. Previously, it was only possible
for stand-alone PCs to be used, connected via modems.
NTT Satellite Communications Inc. (NTTSC) has also developed a special
adapter to enable its services to be used for intranet connections.
Competition among operators providing dial-up access for private users
is also becoming more fierce. NTTSC has plans to launch a new service
aimed at these individual users in December. It will offer a maximum
speed of 1 Mbps during data downloading. One of its main sales points
will be that it shares some common features, including the same antenna,
with satellite broadcaster SKY PerfecTV!, a company that has already
garnered over 800,000 subscribers.
DIC currently offers a service with a maximum data transmission speed
of 400 kbps. In response to the threat it faces from NTTSC, in June
the company lowered the price of its hardware kit, which includes its
parabola antenna, and then followed that in August by also cutting the
fees it charges users to use the service.
Also, to coincide with the launch of NTTSC's service, the company plans
to offer data providers the use of servers equipped with equipment for
sending signals to satellites, free of charge up to a maximum of 2GB,
which will allow data to be delivered to individual users at greater
speeds.
Many Advantages, But Limited Users
There are many advantages to satellite Internet services. Access speeds
are considerably faster, especially when transmitting heavy loads, such
as data which contains video or still images.
Another good point is that they also reduce the complexity of all the
lines that are necessary to make up conventional intranets and other
networks. Also, and in contrast to CATV Internet services, with satellite
Internet services users can be located anywhere, as long as they are
within the satellite's coverage area.
But just because satellites are used, it doesn't necessarily follow that
the number of service users will grow quickly.
They will only switch over from their current services when the existing
infrastructure fails to keep up with their needs. For that reason, service
providers targeting individual users are not expecting to see any great
growth in the number of people signing on for their services.
Even combining future forecasts from both NTTSC and DIC, the anticipated
number of private users in the spring of the year 2000 is only likely
to be a little over 100,000. That is a very small figure when contrasted
with the 10 million Internet users in Japan.
Yutaka Nagai, executive vice president of NTTSC, says that current satellites
have enough capacity to cope with around 400,000 users. If, for any
reason, user needs suddenly exploded and demand shot up, then, for the
time being, 400,000 would be the limit.
This upper limit for the number of users is a big restriction as far
as services targeted at private users are concerned. Particularly with
regard to services with an unspecified large number of potential users,
there is a need to look closely at ways to come up with business models
and to carefully select the range of applications.
Combining with Company Intranets
Satellite Internet services do have their limitations, but business users
are aiming to employ them to improve intranets.
Mycal has 247 retail outlets spread across the country. The company has
introduced a satellite Internet service in order to facilitate the delivery
of data, including video and still images, to each store. Until now,
the company has had to arrange for the distribution of its sales promotion
material, recorded on video CDs, to each individual store.
With the new satellite service, it is now possible for the stores to
get hold of this type of data by downloading it on demand. Other materials
which contain image data, including advertising leaflets and product
catalogs, can also be distributed easily.
A new feature has been built into to the company's existing 64 kbps intranet
to enable data to be sent via a satellite. It is now possible to download
data at 400 kbps, which is around six times faster than a intranet.
The costs involved in running the new system are said to be less than
half those incurred when using 512 kbps lines to connect 140 stores.
All this has been realized with an initial investment of about one million
yen (US$8,400) per store.
Progress is also being made in developing applications for educating
employees online. NTTSC is currently in the process of developing research
software that can display several teaching materials on a PC screen
at the same time. In addition to a video image of a lecturer giving
a lesson, other related materials can also be seen by the viewer. These
could include other images or written materials to supplement the class.
In this way, employee education will be achieved more effectively.
Services Targeted at Individual Users Also Being Launched
For businesses that deal with a large number of individual customers,
it is possible to operate a satellite Internet service, provided that
people within the customer group who are interested can be identified.
For example, a company called Nagase which operates a cram- school business
is currently studying the feasibility of offering an education service
for students preparing for university entrance examinations. The service
would include moving images and, unlike if just the Internet were to
be used, the system would be capable of clearly displaying writing on
blackboards so that students would have no trouble reading it. If an
on-demand service was to be used, then students could be charged according
to the number of lectures they view.
In September, Digital Archive Japan Inc. (DAJ), a company dealing in
digital data sources, launched a new service based on a membership system,
selling digital data to people such as SOHO designers.
Users who subscribe to the DAJ service get the company's receiver kit
free of charge. Then, they are able to download raw data, a maximum
of over 30MB, at high speed. One month after the service was formally
launched, the number of subscribers stood at around 50, and most were
also subscribing to the DIC service.
In the same way, Adobe Systems Co., Ltd. in Japan will be launching a
trial version of similar software (maximum 40MB) and other free software,
all of which will be distributed from NTTSC's servers. The aim is to
try to create a service where registered users can purchase software
upgrades online and have them delivered directly, via satellite links.
Table: Charges for Satellite Internet Services
Services can be broadly divided into two types: those aimed at business
users and those for private users.
Initial costs for business services differ according to the number of
nodes in the network.
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Business use
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Service provider
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Basic monthly fee
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Fee system
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Satellite
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Base station
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Service start
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Space Communications
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120,000 yen + 1,300 yen for each terminal
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Data surcharge (200,000 yen per month for up to 4 GB, and
50 yen per MB thereafter)
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Superbird A, Superbird C
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Ibaraki, Japan
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Jan-97
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Direct Internet
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--
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Data surcharge (165,000 yen per month for up to 4 GB, and
60 yen per MB thereafter)
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PAS-2
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CA, US
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Jan-98
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Bekkoame Space Net
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48,000 yen for each terminal (1.5Mbps)
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Bandwidth surcharge (480,000 yen per month for 1.5 Mbps)
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PAS-2
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CA, US
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Apr-98
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Japan Satellite Systems
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120,000 yen + 1,000 yen for each terminal
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Bandwidth surcharge (5,480,000 yen per month for 1.5
Mbps)
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JCSAT 1, JCSAT 4
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Tokyo
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Apr-98
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NTT Satellite Communications
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120,000 yen + 800 yen for each terminal
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Bandwidth surcharge (5,300,000 yen per month for 1.5
Mbps), data surcharge (200,000 yen per month for up to 4 GB,
and 50 yen per MB thereafter)
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N-STARa, JCSAT4
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Tokyo
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Oct-98
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Private use
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Service provider
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Initial costs
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Fee system
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Satellite
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Base station
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Service start
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Direct Internet
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49,800 yen + fee for antenna installation
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Data surcharge (5,500 yen per month for up to 5 GB, and
60 yen per MB thereafter)
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PAS-2
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CA, US
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Jan-98
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NTT Satellite Communications
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30,000 - 60,000 yen + fee for antenna installation
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Data surcharge (4,000 yen per month )
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JCSAT4, N-STARa
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Tokyo
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Dec-98
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(return to news)
(Toshiaki Matsumoto, Staff Editor, Nikkei Multimedia)
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