This new study drills down into each market sub-segment and provides highly detailed regional analysis on the issues driving each market. The study concludes that in the short term, enterprise and SME IP VSATs will be the key revenue generator in the market, and consumer and SOHO broadband services will come on strongly in each region after 2006.

In total, service revenues for the broadband satellite market are expected to increase two and a half times between 2003 and 2008, reaching US$5.2 billion. In addition the study concludes that, even though the number of satellite ISP sites will peak during the forecast period, revenues for this sector will continue to grow because of increasing bandwidth demand from individual ISPs.

"The last year has generated a number of important gains in penetrating the small and medium enterprise sector for broadband network services, while other market segments have stalled or have only seen slight growth," stated Patrick French, Senior Analyst and the study's author.

"Yet, broadband satellite markets are on the verge of a potential revolution with the expected launch of at least three next generation platforms in 2004. Success will not be automatic with these new services, but the industry has learned from its mistakes of the past and knows the price points it needs to meet, the service levels that must be offered, and where it can best compete against other broadband terrestrial offerings."

In order to better evaluate and forecast the potential of the future broadband satellite service market, the "Broadband Satellite Markets 3rd. Edition" study undertook a detailed examination of several key, emerging market segments, including SME broadband access, business television (BTV), and broadband Internet access for rural consumers and SOHOs in North America and Western Europe.

In the assessment of the addressable rural market in North America for consumer and SOHO broadband satellite Internet access services, Northern Sky Research concluded that approximately 9.5 million households and SOHOs would not have access to terrestrial broadband services.

Of these, the study projected that the maximum possible penetration of satellite broadband services would be 3 million households and SOHOs if future services meet their stated price points and promised service levels.

"It appears that the rural market for satellite broadband in North America has potential," said French. "Nonetheless, it does not appear as large as some others in the industry would like us to believe.

"If the satellite industry truly expects many millions of subscribers to satellite provisioned services, then finding a way to compete against terrestrial services is a must. Be it bundling broadband with satellite TV or some other variation, the exact road to success is still shrouded in uncertainty."

Whatever the outcome of the emerging consumer and SOHO market, the study is clear that the enterprise and SME sector will remain the most important market throughout the forecast period. Northern Sky Research estimates there is an installed base of 470,000 one-way and two-way broadband VSATs worldwide.

Declining terminal pricing and offerings that are more focused on the "service," as opposed to the "solution," are driving considerable growth in this segment.

"We can not emphasize enough that the key to competing with terrestrial service providers for enterprise clients will be rapid installation, off-the-shelf equipment, clear pricing, and competent customer service," said French. "No doubt for certain applications, such as networks with hundreds or thousands of sites, satellite will always be the best solution. But true growth will come from competing more for those clients that were previous ceded to terrestrial service providers without a fight."

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