Satellite Broadband Services Set for Sustained Growth
Spaceway satellite. (Boeing image)
CAMBRIDGE, MA, May 2, 2007 - Satnews Daily - Commercial satellite fleet operators are poised to profit from an expected rise in satellite broadband service revenues this year until 2011.
Research firm NSR in a new report said enterprise and SME VSAT networks and single site satellite broadband Internet access services will take the lead in the revenue uptick, which should hit $5 billion by 2011. NSR estimates that almost 900 36-MHz transponders will be needed to provision the global base of broadband VSAT sites and satellite Internet access subscribers by 2011. This is almost a 40% increase over transponders leased in 2006.
"Ku-band capacity will play a dominant role in these markets over the entire forecast period," said Patrick French, NSR senior analyst and author of the report. "Yet, many companies are seriously looking to commercial Ka-band, not just dedicated Ka-band satellites like WildBlue-1 and Spaceway-3, for these markets, and the next few years will prove critical in determining just how rapidly the industry moves down this path."
Government-sponsored or mandated broadband VSAT projects, notably in developing countries, form a large part of NSR's forecast of net new broadband IP VSAT site installations through 2011.
The Mexican e-Mexico and Enciclomedia projects are two examples of the power of VSATs to bring communications services to unserved areas and modern educational techniques to all schools no matter where they are located. Beyond these projects, NSR also noted new networks or expansion of existing e-government networks in Thailand, Colombia and Brazil, among others. NSR understands that additional, large rural connectivity and tele-education projects are under serious consideration or even have sought proposals in Russia, Turkey, Malaysia, Argentina and Brazil.
Single site satellite broadband Internet access services are powering the satellite broadband market in developed countries. Single site satellite broadband netted over 170,000 new subscribers worldwide in 2006, with over 80% of these in North America. Interestingly, Australia was the next most important single site satellite broadband market last year.
"While smaller in scope, the Australian Broadband Connect broadband access subsidy program is an excellent example of a government initiative to bring broadband services to rural areas at a price on par with services in urban parts of the country," French said. "This program merits close examination from other governments around the world as an example of a way to help close the digital divide that exists even in developed nations."
NSR is an international market research and consulting firm specializing in satellite and wireless technology and applications. NSR's primary areas of expertise include emerging technology, IP applications and broadcast services.
