Very Small Aperture Terminal (VSAT)

A very small aperture terminal (VSAT) is a two‑way ground station that transmits and receives data via communications satellites. VSAT antennas are small (typically under three meters in diameter) and support narrowband and broadband links, enabling real‑time data exchange between remote terminals, hubs, and other network nodes.

Key takeaways

• VSAT provides satellite-based connectivity for data, voice, and other services without extensive local infrastructure.
• Common uses include enterprise systems (ERP), inventory tracking, remote site communications, and market connectivity.
• Trade‑offs include higher latency (especially via geosynchronous satellites) and sensitivity to weather, solar outages, and physical obstructions.

How VSAT works

A VSAT setup generally includes a small dish antenna, indoor radio/modem equipment, and a satellite link to a hub or other terminals. Data uplinks and downlinks travel via the satellite and can be routed to other VSATs or centralized hubs for further distribution. VSAT networks have been integrated into enterprise operations to replace or supplement wired networks where physical connectivity is limited or impractical.

Typical applications and examples

• Enterprise resource planning and inventory management — VSAT has been used to provide real‑time inventory and order data across distributed retail and manufacturing networks.
• Remote and rural connectivity — VSAT enables operations in areas lacking dense telecommunications infrastructure (e.g., rural stores, exploration sites).
• Financial market access — large exchanges have deployed VSAT networks to extend connectivity to regions with limited wired options; such networks can be offered as an access alternative.

Notable historical examples include large retailers and exchanges that used VSAT to improve inventory control and provide connectivity where wired networks were not feasible.

Advantages

• Rapid deployment with minimal local infrastructure.
• Independence from terrestrial telecom networks — useful as a primary link in remote locations or as a backup to reduce business recovery risk.
• Scalable to cover geographically dispersed sites without laying physical cabling.

Disadvantages and limitations

• Latency — satellite hops (especially via geosynchronous orbit) introduce noticeable delay, which impacts protocols requiring frequent back‑and‑forth exchanges.
• Signal quality can be degraded by heavy weather (rain fade), solar (sun) outages, and obstructions such as buildings or terrain.
• Not always ideal for latency‑sensitive, low‑jitter applications unless specifically engineered.

When to use VSAT

VSAT is well suited for connecting remote sites, providing resilient backup links to wired networks, and supporting distributed enterprise services where terrestrial infrastructure is limited or costly. For latency‑critical or very high‑throughput local networks, wired or fiber solutions may be preferable when available.