According to new research report from Frost & Sullivan, called U.S. Private Satellite Network Markets, the market is driven by the need for cost-effective communication networks for dispersed locations. Revenues are expected to increase to about $728.3 million by the end of the forecast period.

``Continuing developments are expected to result in many new applications. For instance, Hughes Network Systems' DirectPC, an 18-inch satellite dish, can be connected directly to a personal computer (PC), '' says Telecommunications Industry Analyst Jose del Rosario. ``DirectPC can be used in conjunction with the conventional VSAT network; hence it can interconnect a wide range of networks ranging from the Internet to a satellite network. These developments are expected to transform the industry in the coming years, especially in the international markets with inadequate wireline infrastructures.''

In the space segment of the market, transponder demand, specifically Ku- band transponders, are on the rise. Revenues are expected to increase steadily within the forecast period with increased utilization of geostationary satellite transponders.

The ground segment of the market is characterized by continued demand and annual increases in unit shipment growth. A number of factors , including substantial price declines, technological advancements, and a robust U.S. economy have contributed to a steady increase in demand.

Market leaders vary by segment, but the majority are large, established firms in the industry. Many firms, especially in the ground segment, struggle on the margins as they attempt to gain a foothold in a changing market where technology and competition have allowed small players to enter.

Mergers and acquisitions have not materialized over recent years, with the exception of AT&T's decision to exit the satellite market. AT&T's space segment was purchased by Loral Space and Communications, while the ground segment was purchased by GE Capital Spacenet.

``Shared hub solutions have helped service providers achieve market penetration because of the significant cost savings they offer,'' says del Rosario. ``The exorbitant price of a dedicated hub had restricted deployment to organizations with extensive resources , but smaller companies can now share the cost and are expected to see private satellite networks as the answer to their communications needs.''

Market concentration has remained fairly stable, with most traditional market leaders maintaining their rankings. Most players which have serviced the U.S. market are also looking to expand to international markets. Partnering and outsourcing are continuing and increasing trends in the industry.

U.S. Private Satellite Network Markets includes vital information such as shared hub revenue forecasts and trends, long-term projections of changes in price and revenue growth, and competitive benchmarking data. This study offers the insight and tools necessary for developing a plan for market longevity.

The technologies reviewed include single channel per carrier (SCPS), time division multiple access (TDMA), wide area network (WAN), local area network (LAN), VSAT, two-way interactive VSAT, one-way data and audio VSAT, business television, direct broadcast satellite (DBS), direct-to-home satellite service (DTH), hub, and low noise block converter.

This Telecommunications Industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the telecommunications market.

Frost & Sullivan is an international marketing consulting company that monitors the telecommunications for market trends, market measurements and strategies. This ongoing research is utilized to update a series of research publications such as #5646-60 World Commercial, Military and Science Satellite Markets, and to support industry participants with customized consulting needs.

Frost and Sullivan

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