Satellite Broadband

Satellite Broadband: according to Northern Sky Research, the global market for satellite broadband services will increase from $2.7bn in 2004 to $4bn in 2009, a 7.8% CAGR. The number of subscribers is expected to double to 1.7m by 2009, 30% made of SMEs. Such positive expectations could only happen if internet access succeeds taking off. But satellite is expensive, and a second condition for success is that costs must go down. Frost & Sullivan do not believe that success can be there if costs to do things with satellite are 15% above other solutions, such as ADSL, FTTH or cable. Satellite broadband has, however, very good points: throughput speeds, ubiquity, multicasting, and insensitive to time, distance and location. But besides the cost, it also lacks of standardization, and this can be a strong brake for expansion. Four main applications are explored: backup for terrestrial networks, multi-site connectivity, broadband internet access for SMEs and consumers and broadband applications on planes, trains and buses. Will it be a threat or a friend for terrestrial operators? It will depend on vendors and service providers managing to bring prices down enough to compete on economics.