Lack of Satellite Bandwidth Brings Mixed Results to the World VSAT Market, Finds Frost & Sullivan

MOUNTAIN VIEW, Calif., April 1 /PRNewswire/ -- 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.

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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 (http://www.space.frost.com), World Satellite VSAT Markets, thoroughly examines the following markets: satellite, VSAT hardware, and fixed satellite services.

If you are interested in more information on this study, please send an e-mail to Jake Wengroff, Corporate Communications, at [email protected], with your full name, company name, title, telephone number, company e-mail 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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World Satellite VSAT Markets

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SOURCE Frost & Sullivan