Constant debate migrates in telecom circles as to the best communications solution to serve the needs of large rural markets, such as those that exist in Africa. While there are plenty of solutions that would work technically, many argue they’re not cost-effective for low-density situations.
Wireless local loop can be cost-effective and works for many applications, but infrastructure costs can be prohibitive unless there are enough revenue-contributors to spread the expenses across. And while satellite systems tout their ability to allow people to be reached while traveling in the remotest areas of the planet, expensive handsets will make the service cost-prohibitive for most people who actually live in those remote areas.
“The existing solutions are not very cost-effective for very low-density applications,” said Emil Youssefzadeh, chief executive officer of STM Wireless Inc., a wireless-systems manufacturer in the United States targeting developing markets worldwide. “That type of market and the type of application requires a product that can be offered at a price point of US$1,000 or less … per (subscriber) line … (at) one subscriber line per square kilometer or less.
“It’s pretty difficult to see that target achieved with existing solutions” because the infrastructure costs are too high, he said.
STM Wireless announced in September a solution that offers a combination of systems. Its SpaceLoop product joins the functions of a DECT (Digital Enhanced Cordless Telephone) wireless local loop system and a geostationary satellite system, with the switching done over satellite to reduce infrastructure costs.
Youssefzadeh said SpaceLoop is cost-effective-i.e., meeting the US$1,000 per subscriber buildout target-down to 50 subscribers in a 5-kilometer radius.
The system comprises four major elements:
a wireless subscriber terminal (wall unit);
an integrated satellite/WLL base station;
a gateway, which provides connectivity between the remote base station and the public switched network (via satellite). The gateway typically sits at a location close to a telephone company’s switch; and
a network control and management system, which contains the database for channel and frequency assignment and also manages the base stations.
Calls are switched over existing geostationary satellites, in many cases using Intelsat capacity, said Youssefzadeh.
And it is the satellite portion of the system where STM really lends its expertise, for it has its roots in the satellite field. Founded in 1982 by Emil Youssefzadeh, STM began offering VSAT (very small aperture terminal) satellite systems, entering the rural communications market with systems in Mexico and the Philippines. The company since has installed more than 50 satellite networks in Europe, North and South America, the Asia-Pacific and Africa.
Prior to founding STM, Youssefzadeh was a satellite research engineer with Hughes Aircraft in California, where he worked on satellite communications payloads. Prior to Hughes, he planned and designed a national satellite network in the Middle East.
STM’s development of the SpaceLoop system got off the ground through work it completed for Intelsat, which Youssefzadeh said also was confronted with demand for a solution for low-density areas, but could not identify one with existing products. Intelsat contracted STM to study the market and awarded STM a second-phase contract to develop prototype hardware for field trials being established in the African nations of Guana, Senegal and Togo.
Currently, all the products for the existing version of SpaceLoop are STM-proprietary. The next version, due out in the first or second quarter of 1999, is expected to be compatible with standardized DECT terminals from other manufacturers.
The company does not yet have any commercial customers lined up.
