Telecom/1996-04-telecom-walnutcreek.iso/reports/telsat-canada-report

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From: woody <[e-mail]>
Subject: Telsat Canada Report Winter 1990-1
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Date: Tue, 1 Jan 91 18:42:26 EST
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[moderator: this is of some length, but there is some info about satellite
ISDN, satellite telecom uses, etc in this latest Telsat Canada Report.
Please decide whether to archive, special-issue or vape it.]

The following is from Telsat Canada's most recent newsletter. This is
presumably public relations material, and the issue itself carries no
statement of copyright.

---- issue begins here ----


Telsat Report   Vol 5  No 3

Telesat Canada, Satellite Communications Newsletter  Winter 1990

Inside:

* Finning Switches to Anikom 510
* NOVA Uses Satellite for Remote Sites
* Telesat's Satellite ISDN Trial
* Satellite Communications and the GST
* Telesat Marks Fifth Year in Market
* A Fresh Look For Telesat Enterprises



Finning Switches to Telesat's Anikom 510

By: Darren Kelly
Telesat Vancouver Sales

Vancouver-based Finning Ltd has switched to Telesat Canada's Anikom 510
service to handle its voice and data requirements.

Early in 1990 Finning, the world's larges distributor of Caterpillar
equipment, including backhoes, tractors, and heavy mining equipment joined
the Telesat Canada customer list with the addition of an Anikom 510 network
to link some of its major centres. The decision was made for a number of
reasons.

"Our first requirement was to provide a reliable, high-quality broadband
network between our headquarters in Vancouver and our operations in
Whitehorse and Edmonton," says Andrena Mungham, Finning's Communications
Network Administrator.

"We also wanted to construct a network that would provide us with diversity
in our network routing. Our selection of Telesat's Anikom 510 service
allowed us to achieve this by making two of our company's broadband circuits
satellite links."

Finning currently operates a 448 kb/s Anikom 510 circuit between Vancouver
and Edmonton which has been multiplexed to produce 13 voice circuits at
32 kb/s, and one data circuit at 19.2 kb/s. In addition, Finning has also
installed a 128 kb/s link between Vancouver and Whitehorse, which provides
the company with four voice circuits at 24 kb/s, and one 19.2 kb/s data
channel.

"The cost of this network was significantly less than the rates offered
by the terrestrial carriers, even after the recent rate reductions by
Telecom Canada." says Andrena. "We now know what our costs will be
through the life of the contract, and the ability to upgrade our circuits
is offered at an affordable price."

Finning wanted to be able to offer its users route diversity. Through a
combination of circuits linking other Finning locations, Andrena has
developed two completely different paths should a portion of her
network fail, or a disaster occur.

The company has also joined the communications network operated by
Caterpillar in the United States through the addition of a VSAT
antenna. This network provides Finning with ordering capabilities,
updates, and other information from the Caterpillar head office.

In the future, Finning hopes to expand its use of satellite technology,
and is actively considering the purchase of a satellite transportable.
This would allow the company to set up a remote operation at any of its
customer locations in the arctic, or the Northwest. Also on the horizon
is the purchase of mobile services through Telesat Mobile Inc.

"Since the installation of the network on May 24, we have experienced
virtually no downtime," says Andrena. "Any problems that we have had
have been addressed by Telesat people very quickly through the
Vancouver and Edmonton Operations offices. And the Telesat sales and
service personnel have been very professional and attentive in dealing
with our business requirements."


NOVA Connects Remote Sites Via Satellite

Alberta-based NOVA Corporation is using satellite communications to connect
some of its remote pipeline meter stations and construction sites with its
regional offices.

Operating out of its head office in Calgary, Alberta, NOVA builds and
operates high-pressure gas pipelines, and refines and markets oil and
gas products. With pipelines across Alberta, and construction sites in
remote regions of the province, NOVA uses a complex communications
network which includes cable, radio, and satellite components.

As NOVA continues to move into more remote areas, this network must
constantly change and adapt to the company's needs. The major considerations
when establishing communications for each site are cost and delivery
schedules, and it was with these in mind that NOVA first approached Telesat
in 1989.

"We needed to establish a point-to-point link between one of our remote
terminal units at MacKay River and our regional host computer in Vegerville,"
says George Wade, Design Engineer, Alberta Gas Transmission Division,
NOVA. "These units take several on-site readings, including temperature,
pressure, flow, and a number of alarm functions. We have placed them at
critical points along our pipelines, and we needed to establish one at
MacKay River quickly and within a restrictive budget. Telesat was able
to meet our critical in-service dates, and the cost of installation was
accurate enough to allow us to predict the costs of construction to
establish the site."

Wade explains that each remote terminal along the pipeline relays readings
to a regional host computer, which in turn relays the information to a
main Vax host in Edmonton. In the past, these sites were mostly connected
by terrestrial networks, but NOVA is pleased with the satellite link and
is now considering the possibility of using satellite to connect five
more sites in the province.

"We're pleased with the way the link has been operating," says Wade. "There
have been no outages and no major problems. Our main concerns when
selecting a network medium are reliability, cost, and in-service dates.
Satellite addresses all these concerns."

NOVA's Alberta Gas Transmission Division is now developing a communications
network consisting of two segments. The first will be a high-capacity core
network involving head offices and regional centres covered by Edmonton,
Calgary, Ardrie, Vegerville, Edson and Brooks. An engineering study is
currently being conducted to look at different ways of connecting
approximately 800 sites across the province. Approximately 300 of those
sites have already been established, and the remaining 500 include
remote locations where satellite will be considered.

"We're trying to get a handle on our own communications network," says
Wade, "and satellite is one way that we can do that. The technology is
also ideal for disaster recovery applications and as a back-up to existing
networks. A few years ago the cost of satellite was somewhat prohibitive,
but we've found that that has changed, and we can no longer rule out
satellite when planning for the future."


Telesat Conducts ISDN Trial

Telesat has successfully conducted a comprehensive satellite ISDN
(Integrated Services Digital Network) trial, demonstrating that
satellite customers can enjoy the benefits of ISDN services today.

Beginning in August, and conducted in association with Northern Telecom
and Modular Telephone Interface (MTI) Ottawa Inc., the trial was the
first to use D-channel signalling protocols over satellite. The primary
objective was to prove the technical viability and evaluate the performance
of enhanced voice, data, and image ISDN services delivered by satellite,
and dispel the perception that ISDN is incompatible with satellite systems.

The highlight of the trial was a public demonstration of satellite ISDN
held in November. To conduct the demonstration, Telesat established an
ISDN network between its head office in Ottawa and its Toronto teleport.

A satellite link provided direct Primary Rate Interface (PRI) between
two Northern Telecom Meridian SL-1 ISDN nodes. The PRI carries 23
information-bearing B-channels and one signalling D-channel. Northern
Telecom supplied the hardware and software to upgrade the Meridian SL1s
to handle ISDN functions, and MTI installed the upgrades at each site.

"We made very thorough tests on all aspects of ISDN involving D-channel
signalling protocols, and various voice, data, and integrated applications,"
says Hossein Ghandeharian, Network and Applications Development Manager,
Telesat. "All the applications we tested confirmed the compatibility
of satellite communications with ISDN."

"We gave special attention to the possible impacts of inherent satellite
delay on ISDN protocols," adds Suhong Pak, Senior Planning Engineer,
Telesat. "The results indicate excellent performance of all ISDN functions
tested, and confirm that Northern Telecom's ISDN implementation is not
affected by satellite delay."

Telesat's test results  show that excellent voice quality is provided over
the satellite ISDN link using Northern Telecom's M2000 series digital
telephone sets, without the need for satellite echo cancellers. Echo
cancellors, however, would be needed if analog telephone sets were used.

Voice features tested include Calling Line Identification (CLID), Network
Call Party Name Display, Network Ringn Again, and Network Call Redirection
and Forwarding.

Data applications tested include Group IV Facsimile from Ricoh Canada,
screen sharing, and multi-media desktop conferencing applications of
Group TeleConferencing System from Groupware TeleCommunications Software.
Also tested during the trial were compressed videoconferencing from
PictureTel, and wideband audio from Corporate Computer Systems.

"The results show that private ISDNs can easily be established over
satellite by directly linking ISDN PBXs," says Ghandeharian. "Satellite
services customers can benefit today from the high quality and convenience
of dial-up voice, data and videoconferencing offered by ISDN technology."

In an extended trial effort, Telesat is developing the means by which to
offer bandwidtth efficiency and other service enhancements in addition
to the features currently available with ISDN. As a result, Telesat will
be ready to offer enhanced ISDN in association with its Anikom 500 and
Anikom TS services.

Based on international telecommunications standards, ISDN forms the basis
for a multi-purpose, universally accessible, end-to-end digital network.
It is expected to meet user communications needs more flexibly and
efficiently by providing integrated access to a great variety of services
via a limited number of standard user/network interfaces. The D-channel,
with its sophisticated, message-oriented signalling protocols, plays a
key role in control and management of ISDN's multi-purpose functions.


---------------

Satellite ISDN Demonstation (approximation of diagram)

 _____                                   \
(_____) <-----------------------------> --|  Ottawa Telesat HQ
Anik C2                                  /
(Ku-band)

   |   Primary Rate ISDN             +----> Group IV Fax
   |   (23B+D)                       |
   |                                 +----> ISDN Voice Features
   V                                 |      * CLID/NCPND
           Toronto Teleport          |      * NRAG
 \_I_/         ______                |      * Netw. Call Redist/Fwd
   A -------- |______| --------------+
                                     +----> Compressed Wideband Audio (7.5 kHz)
            Meridian SL-1            |
                                     +----> Screen Sharing Desktop Conferencing
                                     |
                                     +----> Videoconferencing


---------------


Satellite Communications and the GST

By: Roshan Hanief  Manager, Goods and Services Tax, Telesat

It is a virtual certainty that the Goods and Services Tax (GST) will
become a reality on January 1, 1991.

[note: since the Telesat Report went to press, GST is now in effect]

The imposition of the GST will mark the end of the 13.5 per cent
manufacturing sales tax, also known as the federal sales tax (FST).
The telecommunications sales tax (TST) of 11 per cent will also be
eliminated.

In the short run, the repeal of the FST will have only a slight impact
on Telesat's pricings. In the long run, when existing equipment is
replaced with new FST-free equipment, Telesat foresees lower prices.
The repeal of the TST, however, will have a significant and immediate
impact of lower prices for our customers who are currently paying TST.

To understand this a little better, let's first look at how the GST
will work.

How It Works

The GST is a consumption tax of seven per cent. Goods and services
are collectively defined as "supplies". A supply can be taxable,
exempt or zero-rated. Most supplies are taxable.

Unlike provincial sales taxes whioch are collected only once from the
final consumer, the GST is imposed and colelcted at every stage of
the production chain. By means of a credit mechanism, however, the GST
imposed at intermediate production stages is either creditable or
refundable. The effect is that the final consumer is the one who bears
the burden of the tax.

A key feature of the credit mechanism allows registrants to claim an
input tax credit (ITC). Most businesses can register for this credit.

An ITC is a credit for the GST paid by registrants on supplies used in
the intermediary stages of production of a commercial activity.
Registered businesses in a reporting period will subtract the GST paid
on their purchases from the GST collectible from their sales, and remit
the difference to Revenue Canada. If the GST paid is greater than the GST
collectible, a refund will be requested. Non registrants are not allowed
to claim input tax credits.

Despite the repeal of the federal sales tax Telesat's costs will
increase marginally.

There are two reasons for this. First, because of the time cost of money
resulting from the difference in timewhen the GST is paid on purchases
and when the GST is collected from sales. Secondly, to reflect the costs
for designing, implementing and administering an accounting system to
accomodate the GST. Since most of Telesat's customers qualify as
registrants for ITC, the GST paid to Telesat by them is creditable.
The assumption is that their costs will likewise increase only marginally.

As proposed in the new GST bill, telecommunications services in respect
to a terminal or earth station situated in Canada are taxable.

However, Telesat's current emphasis on an integrated network covering
Canada and the continental U.S. envisages terminals situated in Canada,
the continental U.S., and outer space. At first glance it may seem that
only telecommunication services utilizing terminals in Canada are
subject to GST, and because a spacecraft is in fact outside of Canada,
it would seem that space segment telecommunications services are not
taxable. At this stage, this has not been made clear, and may not
necessarily be true.

In addition, the Bill proposes that export sales would not be subject
to the GST. With reference to telecommunications services, it is
difficult to know what part, if any, is exported. For example, a
non-resident may commission a service originating in Calgary, going
through Toronto and terminating in Houston. Is this a taxable service?

If it is, the purchaser - in this case a non-resident - has no avenue to
have the tax refunded. Yet, had the purchaser been a GST registrant, the
tax would have been creditable. To resolve these apparent inequities
and clarify other issues related to satellite communications, Telesat
has approached Revenue Canada for discussion and clarification, and
will keep its customers informed, as it receives more details.


Telesat Marks Fifth Year In Business Communications Market

By: Eldon Thompson  President and CEO Telesat

This fall Telesat marks five years of selling end-to-end services in the
business telecommunications market.

When we emerged as a direct service provider in 1985, we embarked on
an intensive program of new service development, sales and marketing
activity, and the development of a national network and customer service
infrastructure.

The results, by any measure, have been impressive. Over the last five years,
we have introduced a comprehensive portfolio of communications services
which have proven themselves to our customers in performance, price, and
strategic value.

We have added more than 250 business customers to our telecommunication
services base, and we have established a national presence in the
marketplace. We now have teleports and other earth station facilities
coast-to-coast, providing private business network and telco-interconnected
services throughout Canada. Also, reciprocal cross-border agreements with
most U.S. satellite carriers and teleport operators extend our services
into the U.S..

What can our customers expect over the next five years?

Using our established Canada and U.S. infrastructures, we can now offer
services to a much broader range of customers, particularly small and
mid-size companies, through shared use of earth station facilities. The
introduction of our new Anikom TS service at the most recent CBTA
(Canadian Business Telecommunications Alliance) trade show was our
first major step in this direction.

With Anikom TS, we can provide service to a new generation of customers
who may never have a satellite dish on their premises and will, nevertheless,
have access to the performance and cost saving benefits of satellite
networking.

As we begin to add Bandwidth-On-Demand features to our services, we will
give customers on-demand access to satellite networking when and where
they need it.

In addition to greater cost reduction through bandwidth management
and shared facility networks, customers can expect to see a new
generation of value-added information services provided either through
business video or more traditional computer databases.

VSAT architecture, in particular, lends itself to business video and
common database access. As VSAT usage increases across North America the
market base will exist for suppliers to provide services such as financial
information, Human Resource training modules, and other computer
database or business television services.

With our two new Anik E satellites scheduled for launch next March and
September, the next five years will see the introduction of new
satellite technologies.

Mobile satellite communications is one of those new technologies.
This service has tremendous application in wide-roaming air, land
and marine transportation, and also for remote sensing, oil and gas
exploration, mining and forestry operations.

Telesat is also engaged in the development of low-orbit sateliite
communications systems, a technology which will usher in the age of
truly worldwide, personal communications.

In every technology advancement, the human element is an essential
component. At Telesat, as we have advanced into the telecommunications
market, we have kept our focus clearly on providing high-quality services
to our customers. Whatever the product, service or technology development,
Telesat remains committed to providing excellence in telecommunications
services throughout Canada, and ensuring that our customers receive
the very best in value.


A Fresh Look For Telesat Enterprises

Telesat Canada Communications Inc (TCCI) has changes its name to Telesat
Enterprises.

The wholly-owned subsidiary began operation in 1986 with the mandate of
creating profitable businesses in areas that Telesat Canada may not
enter as a regulated telecommunications carrier. Telesat Enterprises
is built around an entrepreneurial spirit which is reflected in its
staff and its business units.

The new logo adapts the Telesat logo with an encircling orbit,
symbolizing the satellite technology that is the common element among
its various business units. These businesses include: Teleport Development;
IMPAX-STS, a business television service provider; Satellite Information
Services; MediaSat, an in-store point-of-purchase radio joint venture
with Telemedia; Digital Video Services, a video production company
using digital computer technology for image creation and storage; and
a minority interest in Canadian Satellite Learning Services, a broker
of programming for use in education and training.


____________

_Telesat_Report_ is published by the Business Planning Division of Telesat.

Telesat believes the information contained in this publication to be accurate
as of the date of publication. Some information is subject to change without
notice. Telesat is not responsible for any inadvertent errors.

All correspondence should be addressed to:

Joe Aragona
Editor
Telesat Report
Telesat
1601 Telesat Court
Gloucester, Ontario  K1B 5P4
Tel. [phone]
Toll Free: 1-800-267-1870
Fax: [phone]
ENVOY: ANIK