Latin American telecoms carriers will increasingly deploy satellite solutions for cellular backhaul as prices come down and satellites become more efficient, Rob Kilroy, Americas VP for satellite-based IP communications technology provider iDirect, told BNamericas.

Today, satellite is deployed mainly in isolated areas where microwave is not an option, according to the executive.

“There are situations where satellite is the right technology for cellular backhaul, and others where microwave is the correct choice. We’re seeing satellite being used in areas where microwave is not an option, and where iDirect’s TDMA technology offers a more cost-effective solution than SCPC [single channel per carrier],” Kilroy said.

Mobile carriers in countries such as Brazil that have many isolated areas are increasingly seeking coverage. However, where space segment is scarce, prices for satellite services have risen considerably based on the demand and lack of capacity, Kilroy said. But that could change.

“As more and more satellites are planned to launch in the upcoming years, I expect we’ll see the prices for capacity decrease,” Kilroy said.

“We’re hearing that the new satellites being launched are much more efficient than those currently in use,” he added, clarifying that one must keep in mind that any satellite in use today and ready to be decommissioned is about 15 years old, so the technology enhancements of new satellites on their own will make for a better service.

iDirect has been seeing almost 100% of its deployments using its DVB S2 technology because of the efficiency it offers.

“Adding scarce bandwidth is difficult. iDirect provides technology that enables networks to run more efficiently and increase speeds without adding more bandwidth,” Kilroy said.

IP solutions provider Global Crossing (Nasdaq: GLBC) recently announced it had launched a next-generation satellite network using a platform of VT iDirect.

The satellite solution allows Global Crossing to extend its IP converged services mainly in remote areas where there is no other communications infrastructure.

“We expect to see corporate networks in Brazil to start requiring more bandwidth as they connect more and more to remote offices using centralized applications,” Kilroy said.

Though iDirect works mainly with telcos, integrators have also been important clients, he said.

Satellite is also being used as an emergency service, and the company donated equipment to operators in Haiti and Chile to help get services back up and running.

iDirect is a subsidiary of VT Systems.

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