During the last few years there has been a lot of talk about the evolving broadband-oversatellite industry, but not much has happened. However, with major satellite service providers such as Hughes’ SPACEWAY, Shin Satellite and Telesat planning to launch Ka-band satellites in 2004, the satellite services landscape is about to change. We expect higher speeds and lower service costs to transform the dynamics of this industry and open it up to customers who have not yet been able to subscribe to satellite service.
End-User Demand Drives Wholesale Satellite Demand
Whether broadband satellite will be a strong competitor or a complementary service to DSL and cable is the question du jour. Key players in the satellite industry are at odds about the role it will play. SPACEWAY is confident satellite is a legitimate alternative to DSL and cable modem. However, Alcatel Space views it as a complementary option to existing DSL and cable installations.
Satellite has large geographical coverage and reach. DSL is dependent on subscriber density and proximity to the central office (CO). Cable is focused on the consumer segment with minimal coverage in business-dense areas. Service providers such as New Edge Networks that want to expand their reach are buying wholesale satellite bandwidth to serve areas that are currently unserved by other broadband technologies.
