Small terminal based systems of VSAT, mostly SCPC and TDM/TDMA began in China in 1988. The official news agency, Xinhua was the first customer to use VSATs for transmitting wire reports to its local bureaus. Soon after, ChinaSat, a public service provider under the Ministry of Posts & Telecommunications 9MPT) also deployed a VSAT network for customers including civil aviation, customs administration, and seismological survey. During this period, development in transmission efficiency (datarate and throughput), access scheme, and network management was still crude, and the cost of equipment was high. Also during this time, demand for VSAT service was low and largely concentrated in a small group of users who were engaged in time critical businesses. Information distribution service was still in its infancy.
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