May 01, 2007 07:00 ET

Satellite Broadband Services Experience Dynamic Growth in 2006

Government Projects and Consumer Demand Key in Pushing Industry Revenues to US$3.2 Billion

CAMBRIDGE, MA -- (MARKET WIRE) -- May 1, 2007 --NSR today released the latest edition to its industry-standard report "Broadband Satellite Markets: 6th Edition." The report is a comprehensive analysis of the global market for enterprise & SME VSAT networks, single site satellite broadband Internet access services, and satellite IP trunking applications.

With enterprise & SME VSAT networks and single site satellite broadband Internet access services leading the way, NSR forecasts total global revenues from monthly service fees and sales of customer premise equipment (CPE) will break the US$5 billion barrier by 2011. Not only does this market benefit equipment manufacturers and service providers such as Hughes and WildBlue, commercial satellite fleet operators around the world are securing an important slice of the action.

NSR estimates that almost 900 36-MHz transponders will be needed to provision the global base of broadband VSAT sites and satellite Internet access subscribers by 2011. This is almost a 40% increase over transponders leased in 2006. "Ku-band capacity will play a dominant role in these markets over the entire forecast period," stated Patrick French, Senior Analyst and author of the report. "Yet, many companies are seriously looking to commercial Ka-band, not just dedicated Ka-band satellites like WildBlue-1 and Spaceway-3, for these markets, and the next few years will prove critical in determining just how rapidly the industry moves down this path."

Government-sponsored or mandated broadband VSAT projects, notably in developing countries, form a large part of NSR's forecast of net new broadband IP VSAT site installations through 2011. The Mexican e-Mexico and Enciclomedia projects are two shining examples of the power of VSATs to bring communications services to unserved areas and modern educational techniques to all schools no matter where they are located. Beyond these projects, NSR also noted new networks or expansion of existing e-government networks in Thailand, Colombia and Brazil among others. Further, NSR understands that additional, large rural connectivity and tele-education projects are under serious consideration or even have sought proposals in Russia, Turkey, Malaysia, Argentina and Brazil.

Conversely, it is single site satellite broadband Internet access services that are powering the satellite broadband market in developed countries. Single site satellite broadband netted over 170,000 new subscribers worldwide in 2006 with well over 80% of these coming in the North American market. Interestingly, Australia was the next most important single site satellite broadband market in the last year. "While smaller in scope, the Australian Broadband Connect broadband access subsidy program is an excellent example of a government initiative to bring broadband services to rural areas at a price on par with services in urban parts of the country," stated French. "This program merits close examination from other governments around the world as an example of a way to help close the digital divide that exists even in developed nations."

About the Report

The "Broadband Satellite Markets: 6th Edition" report drills down into the broadband satellite segment in order to provide an in-depth analysis of key trends in six different regional markets and provides the satellite industry with timely and pertinent data regarding growth in IP VSAT sites, subscribers to satellite broadband Internet access services, projected service revenues, revenues from sales of customer premise equipment, bandwidth demand, and leased commercial C-, Ku- and Ka-band satellite transponders. Further, the report is completely integrated with NSR's "Global Assessment of Satellite Demand" report such that the two offer the most detailed analysis of demand for commercial satellite services available to the industry.

"Broadband Satellite Markets: 6th Edition" is a multi-client report now available from NSR. For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit 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'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.