Latest NSR Report Finds Consumer Satellite Broadband to Overtake Broadband VSAT Networking Services on Revenue Basis by 2013

Seventh Edition of Industry Standard "Broadband Satellite Markets" Report Released Today

CAMBRIDGE, MA--(Marketwire - June 24, 2008) - NSR LLC today released findings from its latest report, "Broadband Satellite Markets, 7th Edition," that indicate revenues from consumer satellite broadband services will overtake enterprise class broadband VSAT network services by 2013. The report is a comprehensive analysis of the global market for broadband VSAT networking, single site satellite broadband Internet access, and satellite broadband trunking & backhaul services in all regional markets.

For several decades, classic VSAT networking services for corporate and governmental clients have dominated the greater satellite broadband market. And through to the end of 2007, broadband VSAT networking services continued to lead the market by most measures. Yet, according to Patrick French, Senior Analyst for NSR and the report's author, "It is NSR's view that the promises first made for satellite broadband Internet access services in the late 1990s heyday are now finally on the verge of being fulfilled."

NSR anticipates that by the end of 2008, total subscribers to single site satellite broadband Internet access services, mainly but not exclusively found in North America, will surpass the global installed base of broadband VSAT sites in the corporate and government market. Also by the end of 2008, satellite capacity dedicated to single site satellite broadband Internet access services will exceed that used by corporate and governmental VSAT networks. Most importantly, NSR projects by 2013 total global revenues generated by satellite broadband Internet access services will top those coming from corporate and government broadband VSAT clients. By 2017, NSR anticipates that global satellite broadband Internet access revenues will hit US$3.86 billion, up from US$823 million in 2007.

"NSR fully expects that in late 2008 or early 2009, subscribers to satellite broadband Internet access services in North America alone will break the psychological one million mark, and global subscribers should easily exceed four million by 2016," stated French. "This is no small achievement for the satellite industry because after years of effort, the dividends from the large satellite broadband Internet access investments are finally about to be paid out." The industry has also learned what it must do to maintain momentum, with investments in frequency reuse spot beam satellites playing no small part, and NSR expects that additional major capital outlays needed to guarantee the success of satellite broadband will be announced in the coming months and into early next year.

Still, slipping to the number two position does not spell an end to the broadband VSAT networking market. "Quite the contrary, the two markets are intimately linked especially on the technology development level, and gains made in one area are often easily transferred to the other," said French. NSR predicts that revenues from the global broadband VSAT networking market will climb from an estimated US$1.5 billion in 2007 to in excess of US$2.6 billion in 2017. Government-backed projects for rural Internet connectivity, educational networks, and universal telephony service obligation programs are a strong force behind forecasted growth in many developing markets like Latin America, Asia and Central & Eastern Europe. Further, steady demand from corporate clients in all regions of the world is contributing more than its fair share to future growth as well.

About the Report

"Broadband Satellite Markets, 7th Edition" provides an in-depth assessment of the broadband satellite market, including key trends in seven different regional markets. The report also provides the satellite industry with timely and pertinent data regarding growth of one-way and two-way broadband VSAT sites, subscribers to single site satellite broadband Internet access services, trends in the broadband trunking & backhaul markets, projected service revenues, revenues from sales of customer premises equipment, bandwidth demand, and leased commercial C-, Ku- and Ka-band satellite capacity. Further, the study is completely integrated with NSR's "Global Assessment of Satellite Demand, 5th Edition" and "Wireless Backhaul via Satellite, 2nd 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 or call NSR at +1 617-576-5771.

About NSR

NSR is an international market research and consulting firm specializing in satellite and wireless technology and applications. NSR's 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.