More Opportunities for MRVC?
( BW)(PIONEER-CONSULTING) Broadband Satellites Predicted to Ease Global
Bandwidth Crisis Through the Provision of Internet and IP Services, Generating
Over $29 Billion in Revenues by 2005
Business/Technology Editors
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Feb. 4, 1998--Broadband satellite systems such as
Teledesic, Astrolink, Spaceway and Celestri will provide a global broadband infrastructure for IP
services, according to a new report released by Pioneer Consulting titled "Satellite Data Networks: The
Internet's Next Frontier." Using newly available frequencies in the Ka-Band, these systems will provide
broadband services in an efficient manner to all regions of the globe. The Ka-band has created the
opportunity for satellites offering multimedia services to small antennas, eliminating the bottlenecks
associated with telecommunications networks "last mile."
"By the year 2000 at least three major Ka-Band satellite systems will be in operation, offering IP
services to businesses and consumers on a uniform basis throughout the globe. Applications such as
high-speed Internet access, distance learning, telemedicine, and virtual private networking will be
facilitated at megabit speeds at a cost that should be quite competitive with existing broadband services in
the U.S., and very competitive with those in Europe and Asia," said Scott Clavenna, the report's author.
"The nearly universal adoption of IP as the foundation of corporate internetworking has created an
opportunity for satellite system developers to offer regional or global broadband IP coverage, allowing
users to create highly versatile and flexible networks with one point of billing and management."
As the Internet expands globally from its present U.S.-centrism, satellites will be the only
telecommunications network infrastructure to economically reach emerging markets, particularly those
without access to submarine fiber optic cable systems. For developed markets, broadband satellites offer
a complementary access option to existing fiber optic and high-speed copper solutions, bringing
broadband capabilities to the mass market in the same way DBS has delivered digital television. Because
broadband satellites serve lucrative business customers, this market has a potential to far outgrow the
DBS/Direct-to-Home market. By the year 2005, revenues from broadband satellite services will reach
$29.25 billion globally.
Year Broadband Data Revenue
($US Billions)
1998 0.05
1999 0.10
2000 0.30
2001 1.00
2002 3.70
2003 11.47
2004 19.50
2005 29.25 |
