techdee
JF-Expert Member
- Oct 28, 2013
- 302
- 67
I guess it also has something to do with cost. If you lease a TP with very high symbol-rate (e.g. 27500) you may pay more compared to, say 2200. It is also cheaper to lease a TP on C-Band compared to Ku-Band.
Have you ever wondered what it costs to lease Transponder time?
The part of a communications satellite that is "for sale" is the transponder, which broadcasts signals. Transponders are transmitter/receiver devices. Early satellites had single transponders, but by year 2012 some satellites have two dozen or more Transponders (leased full-time or occasionally). For instance, the Eutelsat 7 West-A satellite hosts over 600 TV channels in 49 Ku-band Transponders.
The cost of leasing varies, depending on variables such as the time of day, frequency, power, duration of lease contract, orbital position, and type of satellite (i.e., whether C, Ku or Ka-band). In recent years, the rate for domestic C-band channels ranged from $200 to $600 per hour, or $55,000 to $230,000 per month. Leasing a higher frequency, Ku-band transponder ranged between $250 to $800 per hour, or $150,000 to $210,000 per month.
The more popular a satellite is, the higher the demand for its limited TPs and, most likely, the higher the leasing cost per hour. For instance, the lucrative 7West or 8West position! Or the fully-booked 36 East!
A satellite costs $300 million to build, launch. If it operates 15 transponders, over 10 years the cost is then $2 million per annum per transponder.
One transponder may be leased and used to provide a high power 34 Mbit/s outlink carrier (hub to remotes) at a cost of $2,000,000 per annum.
One quarter of another transponder may be leased to provide a low power high sensitivity return link capacity (remotes to hub) at a cost of $500,000 per annum
Satellite bandwidth / airtime leasing is big business! Company A may lease a Ku-band transponder for 10 years from a popular Ku-band satellite for $2,000,000 per annum, then sub-lease on hourly basis to as many TV channels (Direct-to-Home) as possible; say up to 30 channels on an MPEG4, DVB-S2 TP.
Assuming each TP is leased for $2,000,000 per annum, Viewsat needs to raise at least $8,000,000 per annum excluding any profits!
An year with 365 days has (365 X 24) = 8760 Hours.
If each of the four TPs hosted only one TV channel, the TV station would have to pay:
$2,000,000 per annum / 8760 Hours = $228 per Hour.
To retain / maintain the four TPs, Viewsat would have to earn $8,000,000 / 8760 = $913 per hour to remain in business!
The more the channels hosted the better, both in terms of competitive charge per hour per Channel, and profits made. In a zero-profit or break-even situation, each of the 60 TV channels would pay $913 / 60 = $15 per hour.
However, to make commercial sense, and safeguard a situation where 56 of the 60 TV stations gradually left and only one Station per TP remained; each station should pay anything between $228 and $250, depending on whatever is negotiated in the contract.
Here we are talking of profits before tax (and other expenses) of around ($228 minus $15 per hour) X 8760 Hours = $1,865,880 per annum! Suppose the four TPs operated at full capacity? . Wow .!
Now, suppose Family TV leases a TP on their own on Intelsat 20?
He needs to pay at least $2,000,000 per annum, or $166,167 per month (equivalent to KSh.170 million per annum; and KSh.14 million per month)!
Suppose he now invites 9 of his friends and they fundraise to form a Kenyan Mux?
Each of the ten stations will raise at least KSh.1.4 million / month. This is equivalent to a paltry KSh.1,400,000 / (30*24 Hours) = KSh.1945 per hour (or $23 / Hour).
Now, suppose 30 local stations were involved? With this kind of mathematics, it should build a business case why all the local stations should gang up to launch a Kenyan Ku-band Mux!
Just food for thought.
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Here is a copy and paste of part of a TP leasing process in contract language:
(1). The term of this lease will be 11 years. Access-TV will lease from
Triumph one C-band transponder (the "Transponder") from 12:01 a.m. Eastern Time
commencing on January 1, 1995 through 11:59 p.m. Eastern Time on December 31,
2006.
(2). Access-TV will lease from Triumph a transponder on the Hughes
Communications Galaxy VII satellite, which Triumph has leased from Hughes
Communications Galaxy, Inc. ("HCG"), expected to be Transponder 16. The lease
rate for this transponder shall be US$145,000.00 per month until December 31,
1998, when the rate will increase to US$155,000.00 per month until the end of
the contract.
Reference: www.satsig.net ; http://www.viewsat.eu ; Intelsat 20 at 68.5°E - LyngSat ; http://www.satelliteguys.us ; Northern Sky Research, http://www.nsr.com
Thanks FTA-Nash for this detailed information. I really appreciate it.