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Very Small Aperture Terminal (VSAT)


Very Small Aperture Terminal (VSAT) is a two-way satellite ground station with a dish antenna that is smaller than 3 meters. It is commonly used for reliable communication in remote locations, allowing for data exchange between many locations worldwide. VSAT can handle various service types including voice, data, and video signals.


The phonetic pronunciation for the keyword “Very Small Aperture Terminal (VSAT)” is:Very – /ˈveri/Small – /smɔːl/Aperture – /ˈæpərtʃər/Terminal – /ˈtɜːrmɪnl/VSAT – /ˌviːˈsæt/

Key Takeaways

  1. Global Connectivity: Very Small Aperture Terminal (VSAT) technology provides global satellite communications coverage. This is particularly essential for locations with limited terrestrial internet connectivity. VSAT systems can deliver reliable, high-speed internet anywhere, even in remote or hard-to-reach places.
  2. Cost-Effective: Though the initial installation cost may be high, VSAT technology proves cost-effective in the long term, especially for organizations with multiple remote locations. It eliminates the need for multiple internet service providers and offers a uniform, consolidated service.
  3. Broad Applications: VSAT technology finds usage in diverse fields such as broadcasting, military operations, disaster management, and in businesses requiring secure and reliable communication solutions. In addition, as the technology matures, its potential applications continue to expand.


The business/finance term Very Small Aperture Terminal (VSAT) is important because it signifies a type of satellite communication technology that is widely used in financial businesses, especially those that have numerous geographically dispersed locations. The VSAT system provides a cost-effective solution for businesses to establish internal communication worldwide, including remote and hard-to-reach areas, resulting in efficient and faster data exchange. With VSAT technology, financial businesses can transmit necessary financial and transactional data securely and in real-time, ensuring smooth and more efficient operations. It also aids businesses in maintaining continuous communication in events of natural disaster or infrastructure failure, hence proving to be an essential aspect of business continuity planning.


Very Small Aperture Terminal (VSAT) is an essential technology for businesses that require a reliable, two-way communication service. VSAT is typically used to transmit narrowband data (such as point-of-sale transactions like credit card, polling, or inventory) or broadband data (for the provisioning of bandwidth to carry a data, voice, and video traffic). These terminals offer high-speed, broadband satellite communications for Internet or private network communications.The key purpose of Very Small Aperture Terminal (VSAT) technology is to provide or enable communication in areas that traditionally lack a wired network or have poor network infrastructure. They are widely used in industries such as banking, mining, and retail where establishing terrestrial networks can be costly and time-consuming. From remote oil drilling sites to rural banking applications, VSATs offer a dependable means to keep data flowing even in the most challenging locations or conditions.


1. Oil and Gas Sector: In remote drilling and extraction locations like offshore oil rigs, the oil and gas industry often uses VSAT technology for their communication needs. These include real-time data monitoring, video conferencing, email services, internet access, voice calls, etc. VSAT offers reliable connectivity in sea and land locations where traditional infrastructure like cellular networks or fiber optic cannot reach. It assists in operational efficiency and safety protocols.2. Military Applications: The VSAT technology is extensively used in military services and defense operations. For instance, the U.S. military used VSAT systems for their operations in Iraq and Afghanistan to provide reliable communication with their bases in remote locations. It serves to provide critical capabilities such as command control, real-time intelligence and surveillance, reconnaissance data, and communication among military units. 3. Retail Businesses: VSAT technology is a crucial part of many retail business models, especially those that operate chains of stores in geographically diverse locations like McDonald’s or Starbucks. These companies use VSAT systems to facilitate seamless communications between their headquarters and multiple locations, providing real-time transaction capability, inventory management, digital signage updates, and other critical business operations. These systems ensure an uninterrupted supply of goods, real-time information on sales, and enhance overall customer service.

Frequently Asked Questions(FAQ)

What is a Very Small Aperture Terminal (VSAT)?

Very Small Aperture Terminal (VSAT) is a type of satellite communication system that is used for transmitting and receiving data such as phone calls, emails, and internet data. It consists of two parts: a transceiver that is placed outdoors in direct line to the satellite and a device that is placed indoors to interface the transceiver with the end-user’s communication device, such as a PC.

How does VSAT technology work?

VSAT technology involves a central hub or “master” station and a group of smaller “remote” stations or terminals. Each of these terminals transmits a signal to a satellite, which then relays this signal back down to the hub station, essentially creating a wireless network over a wide area.

Where is VSAT used?

VSAT technology is widely used in industries such as finance, retail, and telecom, as it can support broadband data for internet and network access, VoIP, video, and other applications. It’s also used in remote locations where traditional networking is not possible.

What are the advantages of using VSAT?

The main advantages of using VSAT include accessibility, reliability, and cost-effectiveness. This technology allows for connectivity anywhere, even in remote locations. It’s also highly reliable, offering consistent communication networks. Additionally, since the cost of VSAT does not depend on the distance between workstations, it can be a cost-effective solution for businesses operating over wide geographical areas.

Can VSAT technology support a fast internet connection?

Yes, VSAT technology can support broadband internet connections. However, the speed of the internet connection depends on several factors, including the size of the dish, the location of the terminal, and the configuration of the network.

What are the limitations of VSAT?

VSAT technology is subject to certain limitations. For example, the quality of the connection may be affected by weather conditions. Also, there may be a small delay (latency) in the signal due to the distance it must travel. Furthermore, installing and maintaining a VSAT system requires significant technical expertise.

Is VSAT technology secure?

Yes, VSAT technology is typically very secure. Encryption and other security measures are often used to protect data transmitted over these networks. However, like any network connection, machines that are connected via a VSAT network need to have appropriate security measures in place.

Related Finance Terms

  • Satellite Communication
  • Internet Service Provider (ISP)
  • Telecommunications
  • Bandwidth
  • Data Transmission

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