Satellite networks are particularly cost effective for broadcasting and for transmission over long distances in remote areas. A major advantage is that use of satellite enables a complete bypass of regional and even national network facilities. Satellite is therefore an attractive alternative for business customers, for instance banks, demanding reliable data services outside the major cities.
The major cost component is the satellite itself. The major cost driver is therefore traffic volume, while distance does not affect costs. Satellite is therefore cost-effective in low demand areas without a reliable communication infrastructure
See Satellite for a technical description.