Latest NSR Report Finds Satellite Backhaul of Wireless Networks to Remain Key Enabler for Rural Coverage
Wireless Backhaul via Satellite, 2nd Edition Report Projects Market to Generate $4.3 Billion Through 2017
| Source: NSR
CAMBRIDGE, MA--(Marketwire - June 26, 2008) - NSR LLC today released findings from its
latest report, "Wireless Backhaul via Satellite, 2nd Edition" that indicate
satellite links will represent a growing portion of rural wireless network
deployments around the world over the next 10 years. The report provides
an in-depth overview of demand trends for seven regions of the globe,
focusing on mobile backhaul requirements of the globe's rural markets.
The report concludes that, from an estimated $227.1 million in revenues for
2007, revenues for both equipment sales and transponder leases are expected
to reach $572.9 million by 2017, yielding total revenues of $4.3 billion
over an 11-year period. Mobile services globally have exhibited tremendous
growth over the past decade, driven by increased usage in the world's top
metropolitan areas that has led to mobile subscriptions breaching the 3
billion mark, or close to 50% of the world's population.
However, given the increased competitiveness of the top metro markets as
well as the regulatory impetus towards the fulfillment of Universal Service
Obligations (USO), rural areas are becoming more important for incumbent as
well as new service providers that are looking to enter the market. And
here, satellite backhaul due to coverage and instant infrastructure
advantages become highly valuable in being part of the mobile ecosystem in
many of the globe's Greenfield markets.
Indeed, in key markets such as India and China where mobile growth has
occurred at a blistering pace in recent years, rural areas have become key
markets for many service providers for sustaining historical growth levels.
"But addressing rural demand is vastly different from urban demand,
particularly in cost structures. For instance, equipment prices in rural
markets are very inexpensive, and monthly service costs or ARPU levels are
just a fraction of their urban counterparts," stated Jose Del Rosario,
Senior Analyst of NSR and author of the report.
As such, service providers have to closely monitor CAPEX and OPEX in
addressing rural demand. And backhaul costs are key since these could be as
high as 40% in some instances, which pose huge challenges to ROI
considerations. For satellite space segment in particular, its relative
high cost has been one of the biggest market restraints in adopting
satellite backhaul solutions.
Moreover, satellite backhaul is not the only option for rural and remote
areas, and terrestrial technologies are constantly improving their reach in
order to expand coverage and enlarge market territory. Satellite backhaul
solutions will have to address these issues in order to improve its market
positioning over the long term.
The good news is satellite technology is likewise improving its technical
capability and improving its cost structure. "There is an evolution taking
place where satellite backhaul technologies are moving towards IP and data
platforms that improve efficiency in space segment usage and thus lower
transponder or bandwidth costs for mobile service providers. As
technological improvements and the evolution continues, satellite platforms
should at the very least maintain its niche and sustain its role in the
wireless backhaul market over time," stated Del Rosario.
About the Report
"Wireless Backhaul via Satellite, 2nd Edition" 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
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. NSR 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.