This new study segments the satellite broadband market into its integral pieces in order to provide an in-depth regional analysis of each critical issue driving and restraining market growth.

The study presents the satellite industry with timely and pertinent data regarding growth in IP VSAT sites, subscribers to satellite broadband services, projected service revenues, revenues from sales of customer premise equipment, bandwidth demand, and leased commercial satellite transponders.

Further, the study is completely integrated with NSR's Global Assessment of Satellite Demand study such that the two offer the most detailed analysis of demand for commercial satellite services available to the industry.

At first glance, the broadband satellite sector appeared to suffer through a difficult year in 2004. The launch of the iPSTAR-1 satellite was delayed once again, WildBlue and Telesat Canada did not manage to bring their new services to market, and DIRECTV essentially commandeered the next generation broadband SPACEWAY-1 and -2 satellites to be used exclusively for TV broadcasting.

A year ago the industry thought that 2004 would see the launch of services from all of these programs, but instead another year slipped by and doubts have increased from some quarters that satellite broadband services will ever take off.

"There is some cause for disappointment," stated Patrick French, Senior Analyst for NSR and the study's author, "but the simple fact is that satellite broadband services saw solid, incremental growth in 2004, and NSR contends that the window of opportunity remains open for a future generation of new broadband services."

On a global basis, the NSR study found that total IP VSAT sites and subscribers to satellite broadband services increased by over 115,000 in 2004, and total revenues generated in this year exceeded US$2.7 billion. In the coming years, NSR projects a 7.8% rate of average annual revenue growth based on the market dynamics seen today.

NSR believes future generation consumer and SOHO satellite broadband services will finally be launched in North America in 2005, and the entire industry will be watching for the slightest signs of uptake.

"It may not be until early 2006 before we get some good hard data," said French, "yet success in bringing a next generation of services using Ka-band capacity to this market sector will have positive ramifications around the world and in other segments of this industry.

If the announced service price points are indeed met and, more importantly, the service can be tied to satellite TV offerings, then NSR contends that the challenges facing development of a large mass market for satellite broadband services are surmountable."

Turning to the enterprise and SME IP VSAT sector, NSR projects that the ongoing push to bring down equipment and service prices will keep growth steady and lead to ever better penetration into the potentially lucrative small and medium enterprise segment. The share of the IP VSAT market attributed to the SME segment is anticipated to increase to over 30% in 2009, up from less than 15% today.

The push towards standardized, off-the-shelf equipment has been key in aiding service operators grow the SME sector in markets around the world. While NSR projects that North America will be the biggest market for satellite broadband services, the research conducted in the study showed that Asia has the potential to become the fastest growth region.

"Government sponsored satellite broadband programs in Asia, be they in developed or developing countries, are generating considerable growth, and a success with the iPSTAR program would just be icing on the cake," said French.

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