Abstract
The economics of virtual circuit services offered through very small aperture terminal (VSAT) networks are examined and compared with terrestrial alternatives. It is shown that VSAT networks are cost-competitive with terrestrial networks at around $300 per month per VSAT. For HUB costs in the range of $100000 the VSAT network can be cost-competitive for networks as small as 100 VSATs. Networks smaller than 100 VSATs are not cost-competitive, because the space segment cost becomes a dominant cost contributor. >
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