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Wireless Infrastructure - Wireless Backhaul Via Satellite Market: 'Tremendous Gains'
August 05, 2010
By David Sims, TMCnet Contributing Editor
NSR's annual review of the wireless backhaul via satellite market shows the industry made what NSR officials characterized as "tremendous gains from the blistering pace of wireless subscriber growth in 2009 and the first half of 2010."
And this is despite what by all accounts has been a challenging economic environment. The wireless industry was one of the global economic bright spots, which, the report found, "led to sustained demand for satellite backhaul services for use primarily in rural markets."
Global wireless subscriptions breached the 4 billion mark in 2009, which translates into an additional one billion subscribers in the one year. "This pace is the fastest thus far," the report finds, adding that "it likewise signals the penetration of wireless usage in areas previously untapped."
Report officials say satellite technology was used to serve new and emerging market opportunities as CAPEX ,and OPEX (News - Alert) "began to make sense in key market niches with the advantages of ubiquity and reach that satellite backhaul presents."
And much to nobody's surprise, cost remains the single most important issue in the market: "Company-specific performance was mixed as economic issues led to some postponements of shipments and installations to some wireless telcos."
Earlier this year CFN Services (News - Alert) announced a program to support wireless infrastructure from core to tower, Wireless Jumpstart.
The program was developed to help wireless providers with "all aspects of the wireless infrastructure," company officials said in March, from business cases to planning, design through implementation; for new markets, to upgrade existing markets and for new wireless providers.
In total, the report concludes, NSR projects that satellite backhaul equipment and services will grow from an estimated $316.6 million in revenues in 2009 to $583.4 million by 2019, yielding total revenues of close to $4.8 billion over an 11-year period.
Satellite bandwidth procurement should dominate revenue streams, accounting for 94 percent of cumulative revenues. Equipment sales will likewise experience healthy growth as a mix of solutions including SCPC, IP VSATs and HTS solutions begin to impact the marketplace.
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