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Broadband Satellite Revenue |
Broadband Satellite Markets Did
Not Falter in Face of 2009 Economic Crisis
Aeroflex
April 8, 2010
Sector Revenues to Increase by 135% in Coming Ten Years
Cambridge MA
- NSRs annual review of the broadband satellite market shows
that, after a year of uncertainty, the majority of signs indicate the
sector made it through the worst economic crisis since the Great
Depression relatively well. Probably one of the biggest success stories
of 2009 was satellite broadband access, where NSR noted that North
America set a milestone by becoming the first region to top 1 million
subscribers, and Western Europe will likely exceed 100,000 subscribers
well before the end of 2010.
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Satellite broadband access providers saw that few
consumers and businesses were willing to give up their broadband service
in difficult times. Plus, the imminent launch of the second generation
of high throughput satellites (HTS) like ViaSat-1, KaSat, Jupiter and
even Hylas-1 will finally change the core economics of satellite
broadband access services. This trend coincides in a very timely fashion
with a number of national government initiatives to bring broadband to
all residences and business in their respective countries. NSR believes
that ensuring 100% broadband coverage in any country will almost always
include the use of satellite broadband access services as the most
economical way to reach the last few percent of households and
businesses. However, the leading challenge that service providers will
face in the coming year is changing existing perceptions in government
agencies, in addition to consumers, about what satellite broadband
access can really do using the second generation of HTS.
Turning to broadband VSAT networking services, NSR did
note some regional difficulties in the last year caused by the global
economic crisis. Yet for every market that saw problems, there seemed to
be another that hardly shrugged in 2009 when it came to expanding
broadband VSAT networking services. Leading among them was Latin
America, driven by several major government rural connectivity and
school network projects. Plus, the Middle East & North Africa and
Sub-Saharan Africa managed steady growth in 2009 despite economic and
well known capacity issues.
Trunking services continue to decline in most markets,
including the long-resilient Sub-Saharan African market as it is
impacted by the arrival of numerous undersea cables, the spread of
terrestrial fiber, and even the potential launch of the O3b
constellation. Yet, backhaul services for the cellular and BWA markets
continue steady growth and will easily absorb any satellite capacity
released by the trunking market for the foreseeable future.
In total, NSR projects that broadband VSAT networking,
satellite broadband access, and broadband trunking & backhaul services
will generate nearly US$8.8 billion by 2019, which is a 135% increase
over 2009. In particular, global satellite broadband access will add the
most new revenues, some US$4.1 billion between 2009 and 2019, to become
the leading market segment and bypass traditional broadband VSAT
networking in revenue terms as of 2013.
About the Report
Broadband Satellite
Markets 9th Edition
is a new multi-client report now available from NSR. This study includes
in-depth analysis of key trends in seven regional markets and provides
the satellite industry with timely and pertinent data regarding growth
of one-way and two-way broadband VSAT sites, subscribers to satellite
broadband access services, trends in the broadband trunking & backhaul
markets, projected service revenues, revenues from sales of customer
premises equipment (CPE), and satellite capacity demand. Further, the
study is completely integrated with NSRs
Global Assessment of Satellite Demand, 7th Edition
and Wireless Backhaul via Satellite, 3rd
Edition studies such that they offer a
library of detailed analysis of demand for commercial satellite services
for the industry. For additional information on this report, including a
full table of contents, list of exhibits and executive summary, please
visit www.nsr.com or call NSR at 617-576-5771.
About NSR
NSR is an international market research and consulting firm specializing
in satellite and wireless technology and applications. NSRs primary
areas of expertise include emerging technology, IP applications, and
broadcast services. With extensive expertise in all regions and a number
of broadband sectors, NSR is a leading provider of in-depth market
insight and analyses.
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