Skip Ahead To: Satellite Internet Forum 2002

Main Conference Page
Conference at a Glance
Keynote Speakers
Agenda
Participating Organizations
Order Audio Tapes
Sponsorship and Exhibitor Information
Request Information
ACT Conferences Home Page
Satellite Internet Services and Applications

Market Forecasts and Analyses: Panel Discussion

Christopher Baugh
Senior Analyst
Northern Sky Research, LLC

J. Armand Musey
Managing Director
Banc of America Securities

Jose del Rosario
Strategic Analyst & Program Leader,
Satellite Communications
Frost & Sullivan

Broadband Satellite Systems Bridge the Digital Divide

  • The business case for broadband satellite systems
  • Assessment of the advantages of satellite technologies vis-à-vis competing terrestrial platforms
  • Forecasts and Market Analyses

Abstract of presentation:

Frost & Sullivan continuously tracks the broadband satellite industry. The proposed conference presentation would include market forecasts based on an assessment of the advantages and disadvantages inherent in satellite platforms vis-a-vis terrestrial-based techniques. The presentation would provide insights on the role of broadband satellite technologies as it competes and co-exists with DSL, ISDN, cable modems and other technologies. In particular, seven inherent advantages are assessed including:
  • Ubiquitous Coverage
  • Simplicity
  • Bandwidth on demand
  • Support of mobile communications
  • Uniformity
  • Asymmetry
  • Low Cost Global Coverage
  • Rapid deployment

An in-depth Demand Analysis section which supports the market forecasts would be presented as well, highlighting current trends in terms of economic performance of specific regions, and trends that affect demand in computers, Internet use, and the overall role of satellite technologies in the broadband market.

Finally, a regional forecast will be provided and compared based on prevailing economic conditions, as well as the planned rollout of service providers. These regions include North America, Europe, Latin America, Asia-Pacific, Africa/Middle East.

Below are some of the qualitative findings of the study:

  1. The North American continent will account for the bulk of unit shipments and revenue streams through 2006.
  2. The broadband satellite market has sputtered to date, however, the recent availability of true two-way systems is proving that market demand is on the verge of high growth.
  3. Broadband satellite service providers are faced with tremendous competition from terrestrial-based platforms, whose business plans rest on providing value-added services at low service and equipment costs. Ubiquity and quick deployment should give satellite services unparalleled advantages compared to terrestrial solutions. Today, however, as technology and coverage of terrestrial platforms improve, the real advantage of any service rests increasingly in cost structures.
  4. Broadband satellite services provide the only option for companies and residential users who reside where the ‘digital divide’ prevails. Most service providers are looking at the more lucrative but also more competitive urban and suburban markets in their planned rollouts. It may be wise to concurrently tap the potentially lucrative rural and underserved markets where satellites have distinct advantages and where competition is less. In the United States alone, there are an estimated 10 million households and businesses that are far from fiber rings.
  5. Difficulty of installation and technical problems have frustrated end users in remote locations who have switched to DSL and cable modem platforms once they were available. In order to prevent churn, ease of installation and technical support should be markedly improved especially when the more complicated Ka-band and LEO systems are introduced.
  6. In the caching, streaming and multicasting market (CSM), international markets are a long-term proposition in solving the ‘core’ congestion problem of the Internet network, since international markets by definition reside at the ‘edge’ of the network. On the other hand, developed country markets, specifically the United States will probably solve the core congestion problem through terrestrial-based solutions in the long run.

Leslie Taylor
President
Leslie Taylor Associates

Return to Thursday's Agenda

Main Conference Page  |  Overview
Participating Organizations  |  Keynote Speakers
Workshops: Wed. Nov. 8   |   Conference: Thurs. Nov. 9  |  Fri. Nov. 10
Order Audio Tapes  |  Sponsorship/Exhibitor Information
Request Information  |  ACT Conferences Home