Mobile Operators in Developing Markets Increasingly Turn to Satellite Backhaul

Global Cellular Backhaul via Satellite Market to Top $157 Million by 2011

CAMBRIDGE, MA -- (MARKET WIRE) -- December 5, 2006 -- NSR today released its newest market survey and forecast report, Cellular Backhaul via Satellite: Extending the Reach of Mobile Networks. The report provides an in-depth analysis of demand trends in five regions of the globe for fixed C- and Ku-band offerings for the cellular backhaul via satellite market over the next five years. The report also provides extensive forecasts for transponder demand, lease revenues, site and equipment growth in all markets.

"The telephony market has shown how satellites provide a key infrastructure component to the operations of voice and data networks around the globe. Cellular backhaul is no different in that satellites build on this legacy to offer an important link that supports the explosive growth of mobile networks," stated Claude Rousseau, Analyst for NSR and author of the report. "Satellite players have improved their offerings in recent years and are well-positioned to quickly deploy scalable solutions that help mobile operators support phenomenal growth that will see a doubling of backhaul expenditures by the turn of the decade," stated Rousseau.

There are obvious satellite capabilities such as reach and coverage that over the last 10+ years have helped cellular operators grow at a high pace in various regional markets where other solutions such as microwave or fiber backhaul were slowly deployed. Satellite offerings can help cellular operators more easily overcome diverse geography, low population density, high capital expenditures and small market sizes.

Satellite however is often tainted by a negative perception that its megabit per second (Mbps) price is high relative to fiber and microwave solutions. Today, further improvements have actually brought the cost per Mbps of satellite connections in the general market range with other solutions. In addition, better compression techniques and traffic load management tools result in quite a few satellite opportunities in regions such as Africa and Asia.

NSR estimates that C-band transponder leases will dominate the satellite-based cellular backhaul market and grow incrementally from 2006 to 2011. The total market from C-band and Ku-band transponder leases will reach $157 million by the end of the forecast period. Key regions include the Middle East and Africa (MEA), Asia and Latin America, where users continue to leap forward directly to mobile telephony services instead of fixed landlines.

Cellular Backhaul via Satellite: Extending the Reach of Mobile Networks is a multi-client report now available from NSR. For additional information on this report, including a full table of contents, list of figures and executive summary, please visit or call NSR at 617-576-5771.

About NSR

Northern Sky Research (NSR) is an international market research and consulting firm specializing in satellite and wireless technology and applications. NSR primary areas of expertise include satellite technology, IP applications, wireless convergence 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.