| With many rural locations still unable to receive DSL or cable modem service, satellite broadband provides a higher-speed alternative to dial-up services. This report examines the market opportunity for satellite broadband providers as the demand for dial-up alternatives expands in rural markets. In our analysis, we project that the satellite broadband market should reach fewer than 1.3 million subscribers by 2011. We also examine the revenue potential of satellite-based services. The report includes 9 charts and graphs.
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TABLE OF CONTENTS
- Introduction
- Satellite Technology
- C Band
- Ku Band
- Ka Band
- Other Technical Advancements
- Limits of Predominant Broadband Technologies
- DSL
- Cable
- Challenges to Satellite Deployment
- Major Players
- Hughes
- WildBlue
- StarBand (Spacenet)
- Tachyon
- ViaSat
- Other Alternatives
- Market Opportunity (2007-2011)
- Methodology
- Historical Broadband Subscriber Numbers
- Demographics
- Pricing
- Rural Subsidies
- Capacity
- About the Author
- Also from Pike & Fischer
- About Pike & Fischer’s Broadband Advisory Services
TABLE OF FIGURES
Fig. 1: Satellite Broadband Subscribers
Fig. 2: ADSL Loop Reach
Fig. 3: Major Hughes Customers
Fig. 4: WildBlue Coverage
Fig. 5: Broadband Penetration by Population Density
Fig. 6: Broadband Penetration by Income
Fig. 7: Broadband Penetration by Age
Fig. 8: Satellite Broadband Subscribers, 2007-2011
Fig. 9: Satellite Broadband Revenue, 2007-2011
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FOR IMMEDIATE RELEASE
Satellite Broadband to Serve Nearly 1.3 Million Homes by 2012, Report Concludes
SILVER SPRING, MD — Satellite-based broadband services—arguably the best way to get broadband access to hard-to-reach rural areas—could be serving nearly 1.3 million U.S. households by the beginning of 2012, market research provider Pike & Fischer estimates. But that will represent only about 11 percent of total rural homes, P&F notes.
In a new report, The Satellite Broadband Market Opportunity, P&F cites a few satellite companies making strides in the broadband market, including Hughes, WildBlue and ViaSat. Those companies are narrowing the digital divide by delivering broadband services to rural locations not served by cable and DSL (digital subscriber lines).
But the satellite companies face some significant challenges in gaining market traction, the Silver Spring, MD-based research house concludes. For example, the high costs of launching satellites will make it difficult for satellite broadband providers to keep pricing competitive while still achieving a suitable return on investment.
In addition, satellite companies could simply encounter lower-than-expected demand for their services. Compared to urban residents, the rural households that the satellite providers are targeting tend to be less interested in broadband services—or less able to afford them, says Pike & Fischer contributing analyst Rich Power.
Pike & Fischer, a BNA company, offers a host of legal and business products covering the telecommunications industry. The report, The Satellite Broadband Market Opportunity, is priced at $699 and is available for purchase at www.broadbandadvisoryservices.com. For analyst commentary or to request a briefing, contact Scott Sleek at 301-562-1530, x291, ssleek@pf.com.
For information about Pike & Fischer’s Broadband Advisory Services, visit www.broadbandadvisoryservices.com or contact Jonathan Wentworth Ping at 212-576-8741 / jping@pf.com.
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R. Daniel Power
R. Daniel Power has over 25 years' experience in the telecom and computer industries. He started his telecom career in market research and analysis while at General Electric. In his next position he was responsible for indirect channel sales at Data-Control Systems. Following that he had a series of positions with increasing scope and responsibility in product management. Products under his management included transmission devices and computer peripherals under several brand names, including Teletype Corporation and NCR. Power also worked with Lucent Technologies on strategy and portfolio management, eventually having responsibility for the entire Lucent product portfolio. Today, Power is a Level II candidate in the Chartered Financial Analyst (CFA) Program, a globally recognized standard for measuring the competence and integrity of financial analysts. He holds a BS ME from Lafayette College and an MBA in Marketing from Columbia Business School.
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