Newsat supremo blasts bad practices

Paul Seaton, general manager of VSAT vendor Newsat has leveled strong criticism at cheating regional VSAT retailers. The Newsat boss says retailers are selling satellite broadband products that the customers aren’t really receiving.

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By  Simon Duddy Published  May 15, 2005

Paul Seaton, general manager of VSAT vendor Newsat has leveled strong criticism at cheating regional VSAT retailers. The Newsat boss says retailers are selling satellite broadband products that the customers aren’t really receiving. “There are a number of retailers in the marketplace, especially in Kuwait and Iraq who are selling satellite broadband products that the customers aren’t really receiving,” says Seaton. The Newsat GM has highlighted contention issues, where the customer believes he is sharing bandwidth with a given number of customers, when in reality it is more, as well as out and out fraud. “The contention issues are worrying but what is more alarming is the practice where resellers are using known brand names to connect customers before deactivating the link and opening up link with a less reliable provider. So the customers thinks he’s getting a reliable service from a top brand but in fact he is getting a sub-standard service from a lesser player or inferior hub,” says Seaton. “These measures allow the reseller to sell at a reduced price, but for the customer the service is much slower and the reliability isn’t there,” he adds. Newsat says it s has had customers en suffering downtime and low speeds. Newsat then checked the IP addresses and tracked down the fraudulent hubs that were being used. “We had to go to customers and let them know what was happening, data transfer is key element of their business so we needed to sort it out,” says Seaton. The practice has also led to Newsat tightening up its procedures with resellers, with the vendor looking for more high value strategic partnerships.

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