Source: NSR

Revenues for Broadband Satellite Services to Exceed US$9 Billion by 2020, According to NSR

Satellite Broadband Internet Access Services Leading the Push in Revenue Growth

CAMBRIDGE, MA--(Marketwire - Apr 12, 2011) - According to NSR's newest market research report, Broadband Satellite Markets, 10thEdition released today, satellite broadband access is again the leading revenue generator with NSR forecasting revenues from these services will grow almost 15% annually over the coming ten years. NSR expects the total satellite broadband market to generate $9 billion in revenues by 2020, driven primarily by satellite broadband Internet access and VSAT networking to enterprises.

"Satellite broadband access services will be over a US$5.1 billion industry by 2020," according to the study's author and NSR Senior Analyst, Patrick M. French. "This is a fourfold revenue increase compared to 2010 and illustrates why so many companies are making major plays into this arena." The chief challenge in the broadband access market, said French is "remaking the general public perception of satellite being a 'last resort' service and offering a product that compares favorably to aDSL services in many unserved or underserved markets." The industry's response to this challenge is the move to High Throughput Satellites (HTS) with a number of new generation HTS set to enter commercial service in 2011.

Turning to the VSAT networking market, NSR reports most regional markets emerged in good shape from the 2009/2010 global economic recession and chalked up solid growth in the installed base of narrowband and broadband VSAT sites, especially in the last quarter or two of 2010. Looking forward, NSR expects that improving economic conditions will strengthen capital spending from enterprises and governments, and this will couple with greater availability of satellite capacity in key markets leading to a peak in VSAT deployments in the 2011 to 2013 period. "The VSAT industry could see its installed and operational base increase by over 750,000 sites in the coming ten years," noted French.

As expected, the last bastion of broadband trunking services, Sub-Saharan Africa, began to cede in 2010 due to the arrival of a wave of new undersea cables and expansion of terrestrial fiber. Conversely, satellite backhaul services mainly for cellular extension continued to make good gains in 2010 and will see at least a 175% growth in installed backhaul sites around the globe in the coming ten years. NSR also sees a solid play for O3b in the backhaul market as well as for trunking services.

About the Report
NSR's annual Broadband Satellite Markets study is now in its 10th Edition and is recognized for its industry leading assessment of the VSAT networking markets, satellite broadband Internet access services, and broadband trunking & backhaul applications. Analyzing the market for a decade now, NSR continues to add new value in each edition of the study. This latest edition now includes an assessment of narrowband VSAT networking services in addition to the traditional broadband VSAT market review, and NSR offers the industry's first independent forecast of O3b capacity uptake within the trunking and backhaul markets. For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com 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 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.