Message-ID: <1.5.4.16.19961118225522.2777dfb8@ix.netcom.com> Date: Tue, 19 Nov 1996 22:58:47 -0800 From: Rob Gordon <mailto:robgordon@USA.NET> Subject: Internet by Satellite To: Multiple recipients of list DEVEL-L <mailto:DEVEL-L@AMERICAN.EDU>
Friends,I have developed an interest in the technology of establishing Internet connections by satellite and I would like to identify others with similar business interests.
About a year ago, I saw a post that a small computer company in West Africa had filed with the U.S. Embassy Trade Opportunity Program. This company wanted to establish itself as an Internet Service Provider (ISP) and resell connectivity services to its clients. They noted that their country's telecommunications industry was being deregulated and privatized and were looking for a consultant to help them with planning the service.
Although I had no particular experience with this technology, I had once lived in their country and this struck me as a particularly good business opportunity. I wrote this company and found that they were impressed by my background and seemed sincerely interested in doing business with me. The American Embassy said they had good references and they were apparently well funded. After several phone conversations with the company, they asked if I could meet them in Las Vegas (for last year's Comdex computer exposition) where we would finalize my consulting contract and look for other technical partners.
I began organizing some research on this by calling several firms who specialized in internet hardware and software. The problem was that this country had a very poor telecommunications infrastructure and these companies only knew how to connect to existing systems. I then called several of the major telecommunications firms and found that they also were not very helpful. These multinational firms were used to doing business with government telecommunications authorities (PTTs) and were not open to doing business with any small companies. The government's PTT, in turn, controlled all land lines and was not open to doing business with anyone other than large telecommunications firms.
I came to the conclusion that a satellite link would probably be the only way to establish a new independent ISP in this developing country. I identified several firms who supply these systems using a "turn key" approach and began to get a rough idea of the costs and technologies involved. My customer agreed with this approach and we decided to continue this line of research when we met at Comdex.
Just two days before I was to leave for Las Vegas, the military dictatorship in this country executed a famous and respected author. As a result, the American Embassy became very slow at issuing visas and my customer was forced to cancel the trip to the United States. They called and said that they considered this to only be a temporary setback and still wanted to do business with me. I decided to go to Comdex anyway to identify firms with this capability and to learn enough about the technology to initiate this project with customer investment funds.
I made the trip to Comdex and was shocked that, at this showcase of advanced American technology, I could find almost no one who even understood what I was trying to accomplish. Technology firms apparently are not oriented to doing business in countries where there is no technology infrastructure. After two days of talking to every large computer and networking firm, I was ready to give up. Finally, just a few hours before I had to leave, I met a manager from Hughes Network Systems who was able to provide a conceptually detailed sketch of how to link a VSAT station with customer sites using web servers, comm servers, routers, modems, and other networking equipment.
I took this information home and began working on a technical proposal for my customer. I then realized I was still missing an important piece of the puzzle. Although I now had a pretty good idea of how to set up an internet satellite downlink in Africa I didn't know what to hook it up TO. (I later learned that this is called "the last mile problem"). I did some more research and eventually came up with a point to point breakdown of all the components needed to establish a new ISP along with an estimate of costs (using this approach, you wouldn't be forced to do business with a turn key vendor but could put each individual component out to bid). I faxed this to my customer and eagarly awaited the start of my consulting contract.
To make a long story short, the deal never happened. It became more difficult to communicate with this customer and the political situation in the country seemed to be disintegrating. There was talk of difficulties with the national telecommunications company. I never found out exactly what happened but after several unreturned phone calls and faxes, I was forced to call it quits with this particular customer.
I am writing this because I believe in turning failures into opportunities. I learned alot from this experience and I would still be very interested in working with this technology. If you are reading this message, you obviously have access to the Internet, but as we all know, many remote areas of the world do not. I think that satellite technology will be the only way to deliver the information revolution to millions of people in the developing world where there is a poor telecommunications infrastructure.
I would be very interested in learning if there are other companies or individuals who are either working with this with this technology or considering working with this technology. If possible, I would like to share information on potential customers, technical approaches, regulatory issues, investment strategies and any other issues involving establishing new ISPs in the developing world.
Thank you.
Rob Gordon
Technology Transfer Services San Diego, California
phone: 619-654-3700 email: mailto:robgordon@usa.net