Satellite broadband providers lobby European Commission over digital divide policy

BRUSSELS: Satellite broadband providers are lobbying the European Commission to get the technology prioritised as key way to help nations provide universal coverage to citizens.

The VATM Satellite Day, similar to one held in the US in 2009 which led to the government releasing funds of $100m to subsidise equipment costs, is aiming to shape EC policy to promote the use of satellite technology.

Jürgen Grützner, managing director of the Association of Telecommunication and Value-Added Service Providers, argued that the EC must be more realistic about what consumers actually want from broadband connections, rather than focusing on headline speeds.

"You need to make end users aware of all the options available to them and look to offer speeds based on users' needs, not political objectives. If satellite is not supported in a technology-neutral way, the last few per cent will never be served," he said.

"Member states are under pressure to find cost-effective solutions. Fibre will cost millions to get to the entire population, and there's no guarantee people will sign up. With satellite it only costs when people say they want to connect."

One company attending the event is Hughes Europe which received $58.5m from the US government to subsidise the cost of equipment. Consumers have to pay only a standard monthly fee, and the company uses capacity on the Hylas-1 satellite owned by Avanti.

Christopher Britton, managing director of Hughes Europe, told V3.co.uk that the EC and UK should look to the US as an example of how satellite technology can solve the digital divide. But he warned that getting local areas online is an intricate process.

"We received $58.5m from the US government and that triggered our best installation record with people taking the service because of the subsidy. I think similar things have to happen in Europe," he said.

"The UK spreads cash to the local councils and in regional areas, so you have places like Rutland that go out and get funding to lay a bit of a cable so BT can then light up their village. It's all fairly convoluted."