Info Gulp

What Is a Very Small Aperture Terminal (VSAT)?


Last Updated:
Info Gulp employs strict editorial principles to provide accurate, clear and actionable information. Learn more about our Editorial Policy.

    Highlights

  • VSAT is a satellite communication technology that enables two-way data transmission for remote and broadband applications without relying on extensive physical infrastructure
  • It has key applications in enterprise resource planning, inventory management, and high-frequency trading, as demonstrated by Walmart and the National Stock Exchange of India
  • Advantages include quick deployment in remote locations and serving as a backup to wired networks, reducing business risks
  • Disadvantages involve latency from satellite signal travel, weather disruptions, and potential interference from environmental factors
Table of Contents

What Is a Very Small Aperture Terminal (VSAT)?

Let me tell you directly: a very small aperture terminal (VSAT) is a two-way ground station that transmits and receives data from satellites. It's less than three meters tall and handles both narrow and broadband data to satellites in orbit in real-time. From there, the data gets redirected to other remote terminals or hubs around the planet.

Key Takeaways on VSAT

You need to know that a very small aperture terminal (VSAT) serves as a data transmission technology for various types of data management and even high-frequency trading. It can replace a large physical network by bouncing signals off satellites instead of using physical connections like ethernet. Keep in mind, though, that because the signal has to bounce, there's often a latency issue that you wouldn't see with a physical network. Most users accept this as the cost for remote access and reduced infrastructure—it's a fair trade in their view. Also, weather can negatively affect how well a VSAT network performs.

How a Very Small Aperture Terminal (VSAT) Works

VSAT networks come into play for numerous commercial applications, and one of the most notable is enterprise resource planning (ERP). Take Walmart, for example—they pioneered using VSAT to track inventory in real-time, which helped them manage their vast stock effectively and cut down on delivery costs between warehouses and stores.

When combined with their hub system for inventory storage, VSAT let Walmart stock stores more precisely and minimize how many times a product moved before sale. Other manufacturers rely on VSAT to relay orders, monitor production figures in real-time, and handle functions that would otherwise go over a wired network.

Consider the National Stock Exchange (NSE) of India—it operates one of the world's largest VSAT networks and offers it as a connectivity option. VSAT gave the NSE a way to provide access in areas with limited wired options. Aside from occasional sun outages caused by solar radiation distorting satellite signals, the network has proven reliable.

Advantages and Disadvantages of a Very Small Aperture Terminal (VSAT)

When it comes to deployment, VSAT networks have a significant advantage. Since the ground station communicates with satellites, you need less infrastructure to reach remote locations. That's why Walmart went with VSAT early on—they were focused on rural America, where telecom infrastructure was sparse compared to cities.

This makes VSAT ideal for connecting remote work sites, like exploratory drilling operations that must send daily drill logs back to headquarters. Plus, VSAT operates independently of local telecom networks, so it works well as a backup to wired systems, helping to lower business recovery risks. If your wired network fails, you can keep operations running via VSAT.

That said, VSAT isn't without its limitations. The most evident is latency— it takes time for data to travel to the dish and then to the satellite in geosynchronous orbit above Earth.

In essence, protocols needing lots of back-and-forth communication, rather than simple one-way transfers, will experience lag. Signal quality can also suffer from weather conditions or obstructions like buildings getting in the way.

Other articles for you

What Is Bank Capital?
What Is Bank Capital?

Bank capital represents a bank's net worth and is regulated to absorb losses and ensure financial stability.

Understanding Financial Terms Starting with W
Understanding Financial Terms Starting with W

This text is a comprehensive glossary of financial and economic terms starting with the letter 'W' from Investopedia.

What Is Going-Concern Value?
What Is Going-Concern Value?

Going-concern value represents a company's total worth assuming it continues operating profitably indefinitely, exceeding its liquidation value due to factors like goodwill and intangible assets.

What Is Micromarketing?
What Is Micromarketing?

Micromarketing targets specific niche groups with customized advertising to drive consumer action and boost profits.

What Are Oil Sands?
What Are Oil Sands?

Oil sands are bitumen-rich deposits extracted through mining or in-situ methods, providing significant oil reserves but at high environmental and economic costs.

What Is an Amended Return?
What Is an Amended Return?

An amended return allows taxpayers to correct errors on previously filed tax returns using IRS Form 1040-X.

What Is Behavioral Economics?
What Is Behavioral Economics?

Behavioral economics examines how psychological factors lead people to make irrational economic decisions that deviate from traditional economic models.

What Is a News Trader?
What Is a News Trader?

News traders profit from market volatility caused by scheduled or unexpected news events by reacting quickly to price changes.

What Is a Simplified Employee Pension (SEP)?
What Is a Simplified Employee Pension (SEP)?

A SEP IRA is a retirement plan for self-employed individuals and small businesses with high contribution limits and tax benefits.

What Is the Truth in Lending Act (TILA)?
What Is the Truth in Lending Act (TILA)?

The Truth in Lending Act (TILA) mandates transparent disclosure of credit terms to protect consumers from unfair lending practices.

Follow Us

Share



by using this website you agree to our Cookies Policy

Copyright © Info Gulp 2025