Informa study shows how satellite Backhaul and Small Cells can help mobile operators Affordably reach untapped markets

HERNDON, Va., May 2, 2012 /PRNewswire/ -- VT iDirect, Inc. (iDirect), a company of VT Systems, Inc. (VT Systems), and Informa Telecoms & Media, a leading analyst firm, today announced the release of a new survey and whitepaper that demonstrate the market value and potential of satellite backhaul when used in conjunction with small cells. The research revealed that a solution combining the two technologies offers an affordable way for mobile operators to improve their services and expand into underserved markets. iDirect is a world leader in satellite-based IP communications technology.

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As portable devices create a surge in mobile data traffic, operators are looking for ways to cost effectively expand their customer base. Small cells that are easy to deploy and cost less are increasingly replacing macrocells as a preferred technology among mobile operators. Informa's research shows that the total cost of ownership (TCO) of a combined solution using satellite and small cells proves to be competitive when compared to similar network deployments using other technologies and can deliver a Return on Investment (ROI) in as little as two years.

Key Findings

• Nearly 90% of survey respondents said that small cells would be important for reaching the next 1 billion subscribers, and almost half (47%) of respondents believe small cells are a preferable solution to traditional 2G or 3G macrocells for rural expansion.
• Nearly 83% of mobile operators would be interested in evaluating a cellular backhaul solution that combines satellite and small cells.
• Mobile operators in the survey listed on-going operational expenses and the cost of capacity as the primary factors when evaluating backhaul solutions for rural connectivity.

The survey featured insights from 330 senior telecom industry professionals along with detailed interviews with over 10 executives from major mobile operators. Representatives from mobile system integrators and hardware and software vendors also participated in the research. The report will be available for download at www.idirect.net/mobile. Informa will also host a Webinar to discuss the findings on May 10 at 9:00 a.m. EDT. To register for the Webinar, please visit http://www.informatandm.com/analyst-webinars/.

"There has been a lot of demand in the mobile industry to expand 3G and 4G into remote and rural areas, and our survey results clearly demonstrate that small cell technology is the preferred path. When combined with satellite, small cell deployments offer an efficient and economical backhaul solution that is highly appealing to mobile operators."

~ Julian BRIGHT
Senior Analyst, Informa Telecoms & Media

"At iDirect, we are always looking for ways to expand the use of satellite technology and create new market opportunities, which is why we commissioned this research. As more mobile operators begin to realize the benefits of small cell deployments, we are ready to help them grow their business with a platform that integrates seamlessly with the latest small cell technology to create a low-cost solution for remote and rural connectivity."

~ Richard DEASINGTON
Director, Market Development, iDirect

Informa Telecoms & Media (www.informatandm.com), is the leading provider of business intelligence and strategic services to the global telecoms and media markets.

iDirect, a subsidiary of VT Systems, is a global leader in IP-based satellite communications providing technology that enables our 350+partners to optimize their networks, differentiate and expand their businesses. The iDirect Intelligent Platform™ allows our partners to run their entire business operations more efficiently via a single, unified IP-based satellite architecture, whether it's providing core IP applications to the enterprise or specialized services to any number of diverse vertical markets. iDirect is the #1 name in global satellite communications in key industries including maritime, military/government,  and oil and gas, with a 62% hub market share and more than a quarter million remotes installed worldwide.  In 2007, iDirect Government Technologies (iGT) was formed to drive adoption of its IP-based solutions in the U.S. government market. In 2008, iDirect Asia Pte Ltd was established in Singapore to enhance its value-add and responsiveness to customers in the Asia Pacific region. For more information please visit www.idirect.net.

VT Systems is an engineering company providing integrated solutions to the commercial and government markets in the aerospace, electronics, land systems and marine sectors. VT Systems' innovative solutions, products and services include aircraft maintenance, repair and modification; software solutions in training and simulation; satellite-based IP communications technology; network solutions that integrate data, voice and video; rugged computers and computer peripheral equipment; specialized truck bodies and trailers; weapons and munitions systems; road construction equipment; and ship design and shipbuilding. Headquartered in Alexandria, Va., VT Systems operates globally and is a wholly owned subsidiary of ST Engineering. Please visit www.vt-systems.com.

SOURCE iDirect