Satellite broadband goes live in the UK

Cedar Telecommunications today launched a broadband satellite internet service, claiming to be the first commercial DSL-equivalent satellite service in the UK.

The service offers a 256Kpbs uplink and a 512Kbps downlink, the same speeds as entry-level DSL.

At £180 per month with a £600 installation fee, the service is more than four times as expensive as DSL, so it will only appeal to customers in areas where there is no DSL access -currently about 50 per cent of the UK.

At this price, the appeal is limited to SMEs, though wealthy consumers may also consider it.

The service will be supplied by HOT Telecom, the UK subsidiary of Hughes Network Systems. Hughes dominates the world Very Small Aperture satellite terminals, or VSATs.

BTopenworld recently signed a deal with Hughes's main rival, Gilat Network Systems, to provide satellite broadband for less than £100. The service recently started trials and is set for commercial launch in March 2002.

Hughes has been offering DirecWay, a one-way broadband service that uses a telephone line for the uplink, for some years. It has also been providing broadband satellite connectivity on a bespoke basis to a number of clients, including the National Lottery operator, Camelot.

Cedar Telecommunications is a subsidiary of the FTSE-listed Cedar Group PLC.