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There are few things more challenging than putting a communications satellite in space. One of them may be building a continent-spanning terrestrial communications network. TerreStar, a new North American carrier, has undertaken the task of executing both simultaneously with the goal of delivering service in early 2009 (for more information on TerreStar, see Exhibit 1). TerreStar plans to build, own and operate North America’s first 4G all-IP next generation mobile satellite and terrestrial communications network. TerreStar’s vision is to build a 4G wireless network that operates in conjunction with a satellite and delivers a minimum of 4 Mbps speeds to a footprint that encompasses 330 million people. This is an ambitious goal that will require a great deal of coordination to bring to life.
As a young startup with few legacy assets to protect, and unencumbered with long-standing partnerships, TerreStar was able to forge new relationships and focus on best-of-breed solutions. TerreStar calls this less capital intensive approach “strategic sourcing.” This means that the most critical aspects of the buildout such as network design and engineering are performed in-house while the more tactical aspects such as site construction and search ring evaluations are managed in an outsourced environment. Although this approach is less capital intensive, it puts a much heavier burden on the company’s vendor and process management.
Consider, for example, the process required to select a site for a single cellular tower—the search ring process. Each tower requires between four to seven vendors ranging from local site acquisition specialists who navigate the zoning process, to Nokia Siemens Networks that provides equipment and engineering expertise and Hughes Network Systems, which offers satellite services. Multiply these complexities across dozens of towers in each market and dozens of markets across the nation and the scope of the true enormity of the project management challenge is revealed.
The search ring process is particularly complex because each party ranks its tower sites based upon its unique set of selection criteria. This is a multi-enterprise management challenge that every network operator faces throughout the lifecycle of a site. The challenges of integrating so many experts into the process became apparent during TerreStar’s first days in the field. In an early build for the Baltimore/Washington market, TerreStar found itself coordinating project teams from Bechtel and Nokia Siemens Networks as well as two local contactors for permitting and siting.
This was the first TerreStar market and the various vendors had yet to interact. It quickly became clear that integrating the opinions and expertise of all the various vendors into a structured decisionmaking process required a sophisticated project management tool. TerreStar had to consolidate, weigh and prioritize detailed comments and site rankings from vendors while balancing them against its own cash flow priorities and timelines. Although strategic sourcing requires fewer capital resources, for TerreStar, there are certain risk factors. Managing such a wide array of vendors requires precision because a delay by a single vendor can cascade throughout the deployment. To mitigate the risks TerreStar needed a project management approach that enabled vendors to work together seamlessly. In addition, to ensure an efficient national rollout of its planned network, TerreStar needed to establish and distribute standard processes to which all vendors must adhere. It found the solution to its challenges with a project management tool from Siterra.
Siterra is a hosted software company with deep roots and specialties in building and maintaining complex carrier networks. Its software is designed to coordinate all aspects of planning, site selection, project management, maintenance and lease administration throughout the lifecycle of a network. These capabilities are delivered in software modules and configured for specific client workflows. In a number of interviews with Yankee Group, TerreStar cited three advantages that made Siterra the clear choice for them: flexibility, detailed information and control. We will now examine each of these topics in greater detail.
Much of Siterra’s flexibility comes from the way it delivers to customers and contractors. The hosted software delivery model enables 24-hour-a-day access from any internet-connected device. In addition, hosting the software in the cloud enables companies to integrate vendors seamlessly without facing the traditional problems of coordinating permission systems and penetrating firewalls.
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