|
|
 |
|
Viewing report
|
|
|
|
Competitive Assessment of Satellites vis-a-vis Terrestrial-based Broadband Technologies
Frost & Sullivan, Oct 2002
Satellite Broadband Services: Contender to Terrestrial Broadband or Just a Niche?
Broadband industry players are divided in their estimation of the market share satellite broadband services are likely to capture. Satellites provide strong support for Internet backbone trunking services and serve both corporate and residential users for Internet access. However, some believe that the constantly increasing availability of fiber capacity is likely to shift the use of satellites more toward a niche market accessing remote areas, rather than a true competitor for the broadband services market.
This Frost & Sullivan research offers a detailed competitive assessment of the significance of satellites in the world broadband marketplace. It projects potential market share for satellites by region that is broken down further into business and residential and by frequency band. The study analyses market drivers and restraints providing forecasts and identifying areas of growth.
DSL, Cable Modem, and Leased Lines Provide Strong Competition
Satellite broadband is competing with DSL and cable modem networks both in the residential and business markets, as well as with leased lines in the corporate market. To succeed, satellite-based services must demonstrate clear price and quality of service advantages over terrestrial alternatives, says the author of this study. Failing to do so condemns satellites to markets where there simply is no other option.
With improving technology - frequency reuse, Ka-band spot-beams and in orbit switching - consumers will have more bandwidth, smaller dishes, and lower installation costs. Better performance and lower prices are likely to attract more customers to satellite broadband and could make it a viable alternative to terrestrial solutions such as DSL and cable modems.
Forecasts Highlight Sustained Growth and New Markets
The research concludes that even a conservative view of the satellite technologys share of the overall broadband market will lead to significant revenues, simply because the market is so large. For instance the 2 percent share of the broadband direct access market in North America in 2001 translates into $522.8 million in revenues.
New business opportunities and markets are also being created by hybrid solutions that combine the strengths of satellite and other technologies. The ability to establish an almost instant telecommunications infrastructure and the ubiquitous coverage of satellites can be used by operators to develop new services. Vertical and horizontal expansions as well as the standardization of the satellite broadband industry is also likely to increase the substitutability with terrestrial technology, making more users purchase satellite broadband services.
|
|
|
|
