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Lack
of
Satellite
Bandwidth
Brings
Mixed
Results
to
the
World
VSAT
Market
Finds
Frost
&
Sullivan
1
April
2010
The
issue
of
inadequate
bandwidth
in
the
world
very
small
aperture
terminal
(VSAT)
market
has
experienced
a
conflicting
impact:
a
spurt
in
service
revenues
and,
simultaneously,
a
dip
in
the
sales
of
equipment
or
hardware.
VSAT
providers,
while
pleased
with
the
hike
in
service
revenues,
are
wary
of
pricing
many
potential,
cost-sensitive
VSAT
users
out
of
the
market.
Moreover,
the
success
of
the
service
market
is
cannibalizing
new
additions
to
the
market,
which,
in
turn,
is
detrimental
to
VSAT
equipment
manufacturers.
Satellite
bandwidth
has
been
limited
by a
lack
of
new
satellites
and
the
increasing
demand
for
satellite
bandwidth
by
current
and
new
customers.
New
analysis
from
Frost
&
Sullivan
(space.frost.com),
World
Satellite
VSAT
Markets,
thoroughly
examines
the
following
markets:
satellite,
VSAT
hardware,
and
fixed
satellite
services.
If
you
are
interested
more
information
on
this
study,
please
send
an
email
to
Jake
Wengroff,
Corporate
Communications,
at
jake.wengroff[.]frost.com,
with
your
full
name,
company
name,
title,
telephone
number,
company
email
address,
company
website,
city,
state
and
country.
Market
participants
have
found
financing
for
new
satellite
launches
harder
to
secure
in
the
current
economic
climate.
There
also
exists
lowered
bandwidth
availability
because
the
U.S.
army,
with
its
two
wars
in
Iraq
and
Afghanistan,
has
been
buying
more
satellite
bandwidth.
Such
demand
has
resulted
in
service
accounting
for
a
larger
percentage
of
total
VSAT
market
revenues
than
equipment.
While
the
rise
in
the
costs
of
services
affects
the
Asian,
Latin
American,
and
rest-of-world
regions
severely,
North
America
is
relatively
resistant
to
this
trend
because
most
end
users
in
this
region
are
affluent
and
can
afford
the
services.
Further,
North
America
has
the
least
problems
with
satellite
bandwidth.
"In
the
rest
of
the
world,
software,
hardware,
and
technology
that
lowers
bandwidth
use
and
thereby,
VSAT
service
costs,
will
be
in
high
demand,"
explains
Frost
&
Sullivan
Research
Analyst
Daniel
Longfield.
The
market
will
also
grow
through
increased
activity
in
the
oil
and
gas
exploration
vertical,
particularly
as
this
segment
has
helped
achieve
many
VSAT
technological
and
service
breakthroughs.
VSAT
market
participants
could
help
themselves
by
bringing
communication
capabilities
to
remote
rural
areas
that
are
not
currently
served
by
terrestrial
communications
networks.
They
could
also
build
redundant,
ubiquitous,
and
emergency-resilient
hybrid
satellite
VSAT/terrestrial
wireline
or
wireless
networks
for
large
enterprises
and
governments.
"Participants
could
also
partner
with
satellite
manufacturers
and
VSAT
equipment
providers
that
offer
flexible
and
affordable
equipment,"
adds
Longfield.
"Flexible
equipment
that
can
be
utilized
when
the
next
VSAT
killer
application
emerges
will
keep
service
providers
from
losing
market
share
to
the
competition."
World
Satellite
VSAT
Markets
is
part
of
the
Space
Communications
Growth
Partnership
Services
program,
which
also
includes
research
in
the
following
markets:
World
U.S.
Military
Satellite
Communications
on
the
Move
Markets,
World
Satellite
Services
Markets
in
the
Oil
and
Gas
Industry,
World
Demand
for
Commercial
Satellite
Communications
by
the
U.S.
Government
and
Military
Markets.
All
research
services
included
in
subscriptions
provide
detailed
market
opportunities
and
industry
trends
that
have
been
evaluated
following
extensive
interviews
with
market
participants.
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