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Broadband Satellite: A $76 Billion Market
Cambridge - Dec 19, 1997 - According to a new market research report released by Pioneer Consulting of Cambridge, Massachusetts, titled "Satellite Data Networks: The Internet's Next Frontier" over $76 billion will be invested in broadband satellite systems. Satellite manufacturers will reap the benefits of new space technologies and rapidly expanding demand for broadband data services in the global telecommunications market. The report details the burgeoning demand for broadband data and Internet access services and the unique way in which satellites can address that market. Over the next decade, a plethora of satellites will be deployed to serve global data markets, particularly Internet-based data. New spectrum released in the Ka- and "millimeter wave" bands has created a significant market opportunity for satellite systems that can offer both broadcast and interactive data services. "Because the nature of satellite services erase the relationship between cost and distance, these services are well positioned to foster globalization of telecommunications," said Scott Clavenna, Senior Analyst at Pioneer. "Once a satellite system is launched, its services are available to anyone within its coverage, which is often continental and in the case of non-geostationary orbit (NGSO) satellite systems, global. Therefore, satellite systems have the quality of 'universal service' which underpins the GII concept. In short, access to the system is in the hands of each user, not an operator."
Broadband Satellite Systems Investment, 1998-2010 ($Millions)
Cumulative Cumulative
Year Investment Year Investment
1998 $660 2005 $52,690
1999 $2,640 2006 $57,290
2000 $8,040 2007 $63,790
2001 $16,800 2008 $70,290
2002 $26,220 2009 $73,590
2003 $38,880 2010 $76,890
2004 $48,090
The study predicts the broadband satellite systems market will expand dramatically over the forecast period (1998-2010), reaching a total of $76 billion invested by 2010. The satellite systems market includes capital expenditures for space and ground segments, including the construction cost of the satellites and the respective launch, launch vehicle service, launch insurance, and associated ground equipment costs. By 2010, Pioneer predicts, broadband satellite systems will serve over 36 million subscribers globally, generating over $77 billion in annual revenues.
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