Braodband satellite industry revenues to increase at an average annual rate of 11 percent during next five years !!

According to Northern Sky Research Ltd. (NSR), service revenue for the broadband satellite industry will increase on a global basis at an average annual rate of more than 11 percent during the next five years, with the fastest growth coming for consumer-class satellite broadband Internet access services like North America's WildBlue and HughesNet.
Broadband satellite Internet services and satellite IP trunking are experiencing rapid subscriber growth, which in turn translates into greater service revenue. In addition, single-site satellite broadband services have had success in markets outside of North America, like Thailand and Australia, and new service launches in Europe and possibly elsewhere in the world will help to generate service revenue growth in excess of 22 percent per year through 2011.
Service revenue from the IP trunking segment actually will decline on a global basis as demand for trunking continues to shift from satellite to undersea cable and fiber, the group says, though some regional markets like Africa will see positive gains in the coming years as demand continues to grow in specific countries.
Solid, steady growth in classic enterprise & SME broadband VSAT services along with continued growth in shared-hub and managed services in most regions of the world will enable service revenue to increase at a steady rate through 2011. In addition, increasingly fat bandwidth pipes for existing broadband VSAT networks will increase service revenues as companies take advantage of standardization to carry on adding additional IP-based applications to their enterprise networks.
Turning to customer premise equipment (CPE) sales, total CPE revenue for the entire market are forecast to remain in the $400 million-$500 million range per year through 2011. The declining CPE cost will be one of the key factors in driving up subscriber uptake for single site satellite broadband Internet access services and will push growth in the enterprise & SME broadband VSAT networking segment as well.
Another trend in the enterprise & SME segment is that better performance is being obtained in CPEs of lower or the same price. This is especially true as bandwidth-saving technologies like DVB-S2 and Adaptive Coding & Modulation are adopted and ever-smaller broadband VSAT networks become financially viable.
The majority of CPE revenues are generated in the enterprise & SME broadband VSAT networking segment. "Interestingly, NSR even forecasts CPE revenues to decline substantially in a number of regional markets. Again, this is a positive sign that does not point to slowing demand for services but a lowering of one of the important cost barriers to broadband satellite services uptake" - as per the report.

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