Broadband Satellite Communications 2004: Industry Report

Broadband Satellite Communications 2004

Product Type: Market Research Report
Published by: Spotbeam Communications Ltd
Published: June 2004
Product Code: R131-010

Description

Summary of Broadband via Satellite 2004

This latest report follows on from Spotbeam's Internet via Satellite series and covers the market for two-way and hybrid broadband satellite communications world-wide.

Broadband via Satellite 2004 provides an overall structural analysis of the industry including its future direction, shape and size. The market is detailed on a region-by-region basis including Asia/Australasia, the Middle East, Africa, Europe, North America and Latin America.

It details all of the main equipment vendors and service providers including estimates of the installed base of units. A detailed, but easy to comprehend, analysis is provided of the main technology developments and standards issues.

Broadband via Satellite 2004 covers all of the main broadband satellite service providers including satellite operators, carriers, teleports and re-sellers as well as the next generation platforms such as IPStar, Spaceway, Skyplex and Wildblue.

The report concludes that two-way broadband satellite communications is emerging as a powerful extension to traditional VSAT and SCPC services. Widespread innovation amongst vendors, service providers and users is resulting in new and extended opportunities often where they are least expected.

On the other hand, we retain a wait-and-see view on consumer 2-way satellite broadband. The addressable market for this service in developed countries is now rapidly shrinking.

Broadband via Satellite 2004 is published at a critical stage in the development of the industry, faced with continuing uncertainty about the future of new multimedia satellites, ownership of key service providers and vendors and market maturity of mainstream satellite services.

It realistically assesses current developments, showing just how an uncertain environment it is. The report makes a clear distinction between enterprise networks and other forms of satellitebased broadband access.

Broadband via Satellite 2004 looks at new opportunities arising from consumer web browsing via broadband satellite in the form of tele-centres and the extension of universal service obligations through hybrid voice and Internet thin route rural communications platforms.

Broadband via Satellite 2004 is 200 pages long and contains 55 charts and tables. It details some 233 vendors, service providers and re-sellers.

Broadband via Satellite 2004 is an invaluable tool for professionals involved in satellite communications including those in general management, business development, marketing, sales, strategic management, investment, finance and equity, regulatory agencies and R&D organisations.

Broadband via Satellite 2004 is published by DTT Consulting, a business that has been dedicated to management information, market research and consulting since it was founded in 1983. It follows on from many years or market research in Ka-band services and Internet via satellite.

We conclude from this report that broadband satellite communications is a healthy marketplace, extending and opening up new niche market opportunities for what has generally been regarded as the VSAT industry.

The report estimates that the installed base of 2-way satellite broadband terminals worldwide, excluding enterprise networks, is around 331,000 units.

However, the addressable market for consumer broadband access is rapidly shrinking and the window of opportunity for the satellite industry is closing.

Moreover, the experience of hybrid access since 1996, thoroughly detailed in the report, suggests that broadband satellite is not an attractive proposition for consumers primarily using it for web browsing.

It remains possible that new consumer services such as Wildblue may stimulate the market but it is increasingly hard to find supporting evidence.

The broadband satellite industry has, so far, emerged from a fusion of hybrid access (DVB-S) and traditional VSAT transactional 2-way technology and markets. Its sales figures reflect levels of demand in both of these two sectors.

Falling costs and expansion of service capabilities have allowed the industry to grow at about 2- 6% a year (in terms of revenues). By the standards of both the satellite industry in general and telecoms overall, that is an achievement not to be scoffed at.

In the worst possible scenario we expect continued, steady and modest growth in demand based on existing technology platforms backed by incremental improvements in performance. That growth will largely be centered on three market sub-segments:

The Enterprise, SME and SOHO sectors with a combination of LAN, VPN and full private networks.
Continued expansion into the backhaul sector covering Wi-Fi, tele-centres, Internet cafes and so on. This overlaps and competes with traditional SCPC point-to-point services.
Meeting the demand for de facto extension of Universal Service Obligations from voice to data. This includes such areas as education, e-government and thin route rural communications.

Our view of consumer satellite broadband is hard. The view here in Europe is that the only consumer offering is hybrid access - although long established, this remains somewhat of a Cinderella business.

Without a consumer sector, broadband satellite communications is largely a network business. It is not about web browsing.

Moreover, whilst both Starband and Direcway are touted as consumer or residential services in the USA, we believe that many of the users fall into the SOHO/SME professional use categories. Moreover, much of what constitutes consumer satellite broadband in North America is still hybrid access.

Indeed, our conclusion is that there isn't currently any actual, current and discernable market for consumer two-way satellite broadband outside of the USA.

That view raises the question of market uncertainty. We will not know until quite well into 2005 whether Wildblue take-up is significant.

Likewise, there remains a massive amount of uncertainty about HNS and Spaceway. Conflicting messages from the DirecTv Group lead us to the simple conclusion that there is a 50:50 chance that Spaceway broadband services will fly - either they will or they won't.

In general, a pattern has emerged of continuing delays in launch of new broadband satellites. The PR puffery industry usually pushes problems with continuing needs to test the satellites as the reason. More rare is the tacit admission of insecurity - the market needs to mature (or develop) before launch.

When we started researching this report in January 2004, we expected that all but Inmarsat 4 (and the 2nd Spaceway satellite) of the broadband satellites would be launched in 2004. By June 2004, Spaceway had been put back to 2005 and we expected IPStar to be likewise delayed.

Spaceway, like HNS, is up for sale. We therefore expect significant industry structure and ownership changes over the next year. HNS may end up being broken up. Likewise, future control and ownership of SatLynx looks uncertain. Who is the power behind Satlynx?

In January 2004 we expected further consolidation of the satellite operating sector through mergers and acquisitions. By mid-2004, no such new developments had been announced and increasingly, the trend now looks to be one of purchase by private equity firms. The industry looks increasingly to be one run as a cash cow.

That is not a climate favourable to investment in big broadband projects.

So far the two-way broadband sector has emerged centered on wholesaling of generic platforms by large satellite operators - Intelsat, New Skies (IPSys), PanAmSat (Spotbytes), SES (Satlynx, Americom2Home) and Eutelsat (D-Star). S

Table of Contents

Section 1: Summary and Overview

1.1: Report Summary

1.2: Definitions

1.2.1: Comments on Other Satellite IP Applications

1.3: Overview of the Satellite Industry

1.3.1: Satellite Broadband Here to Stay

1.4: Internet via Satellite and Broadband

1.5: The Hybrid Access Experience

1.7: Structure of the Satellite Broadband Industry

1.8: Conclusion

Section 2: What Happened to Broadband Satellites

2.1: Alternatives to Broadband Satellites

2.2: WiMax – Ubiquitous Wireless Broadband?

2.3: Other Issues in Broadband Satellite Communications

2.3.1: Standards

2.3.2: Some Economic Issues of Satellite Broadband

Section 3: Hybrid Access Services

Section 3.1: Comments on Content Distribution Networks

Section 4: Two-Way Broadband Services

Section 5: Europe

5.1: Broadband in General

5.2: The Main European Platforms

5.3: Satlynx

5.3.1: Astra BBI

5.3.2: Wholesale Satlynx Customers

5.3.3: BT Openworld

5.3.4: TiscaliSat

5.3.5: BySky

5.3.6: France Telecom

5.3.7: Deutsche Telekom (T-Systems)

5.3.8: NeoSky

5.4: Eutelsat D-Star and Skyplex

5.4.1: SkyLogic Italia

5.4.1.1: Sample D-Star installations

5.5: D-Star Re-Sellers

5.5.1: SkyLogic Distributors

5.5.2: Divona (NetbySat)

5.6: Direcway Europe

5.6.1: Direcway Europe Re-Sellers

5.6.1.1: Bentley Telecom

5.6.1.2: Bridge Broadband

5.6.1.3: Computrade

5.6.1.4: Egyptsat

5.6.1.5: Ethnet Broadband

5.6.1.6: Excelerate

5.6.1.7: Hexasky (Hexanet)

5.6.1.8: Infotechna Internet

5.6.1.9: K-Class Communications

5.6.1.10: MaqSat

5.6.1.11: Nynex

5.6.1.12: Orbitlink (Educom)

5.6.1.12b: Comments on the Irish Satellite Broadband Market

5.6.1.13: Pegas Wireless

5.6.1.14: Polish Phonesat

5.6.1.15: SATdsl (Astracom)

5.6.1.16: Sat_Speed+ (Internetagentur Schott)

5.6.1.17: Servicesat

5.6.1.18: Shownet

5.6.1.19: Swiat Internet (Netia Telekom)

5.6.1.20: Voysat

5.7: Aramiska

5.8: Web-Sat

5.8.1: NovaConnect

5.8.2: Web-Sat Distributors

5.8.3.1: BroadbandIVS

5.8.3.2: MNM Multicom

5.8.3.3: Globesat

5.8.3.4: Andishgan Co.

5.8.3.5: MEconnect FZ-LLC

5.8.3.6: Iraq Satellite Networks

5.8.3.7: Al-Naba'a Information Technologies

5.8.3.8: Dalya Web-Sat Communications

5.8.3.9: Gulf Telecom

5.8.3.10: Viasat Electronics

5.8.3.11: Telecom International & Space Consultancy (TICSAT)

5.8.3.12: Aasterud

5.8.3.13: Arvo Telecom

5.8.3.14: Invisat

5.8.3.15: NazSat Technology

5.8.3.16: Satconxion

5.8.3.17: Systems Communications and Networks (SCN)

5.9: Dexar Multimedia

5.10: Telefonica Spain

5.11: TM-SAT

5.12: Datasat (D-Sat)

5.13: Plenexis

5.14: Belgacom DVB-RCS

5.15: Hispasat

5.16: Telenor Satellite Broadcasting

5.16.1: Softel FZ

5.17: Mach Six

5.18: Russian Satellite Communications Company

5.18.1: Sputnik Telecommunication Entertainment Company (Stec.com)

5.18.1b: Comments on the Russian Satellite Broadband Marketplace

5.19: Netdish

5.19.1: South West Broadband Initiative

5.20: BT Internet Anywhere/Assured

5.21: KB Impuls

5.22: KB Impuls Hellas

5.23: Telespazio

5.24: Sky2Net

5.25: Hellas-Sat

5.26: Emperion (IP Avenue)

5.27: Satlink

5.28: Heliosnet

5.29: Global Telephone and Telecommunication

5.30: Tamsco

Section 6: The Americas

6.1: Performance of Satellite Broadband to Date

6.2: Overview of US Broadband

6.3: Current State of US Satellite Broadband

6.3.1: Overview of Canadian Broadband

6.4: Echostar and Americom2Home

6.5: Wildblue

6.6: Telesat Canada

6.6.1: DirecPC Canada

6.6.2: RAMTelecom

6.6.3: Infosat

6.7: Spaceway

6.8: DirecWay (North America)

6.8.1: Agristar

6.8.2: National Rural Telecommunications Cooperative

6.8.3: Skycasters

6.8.3.1: VSAT Systems

6.8.4: Net2Dish

6.8.5: OptiStreams

6.8.6: Lincsat Communications

6.8.7: Galaxy Broadband Communications

6.8.8: C-Com Satellite Systems

6.9: Starband

6.10: Tachyon

6.10.1: Tachyon Re-Sellers

6.10.1.1: Tachyon Mitsui

6.10.1.2: American Distance Education Consortium (ADEC)

6.10.1.3: SEINET

6.10.1.4: WellSat

6.10.1.5: Petrolink

6.10.1.6: Marshall Communications

6.10.1.7: Spectrum Systems

6.10.1.8: Tamsco

6.10.1.9: Aspinet

6.10.1.10: Satellite Internet Global Services (Internet Satelital)

6.10.1.11: GTSI

6.10.1.12: MCI Internet Broadband Satellite Corporate

6.10.1.13: Comsat Mexico

6.10.1.14: Satweb (UK)

6.11: Lyman Bros

6.12 Business Satellite Solutions

6.13: Foundation Telecommunications (FTI)

6.14: Segovia International

6.15: Sola Communications

6.16: Stratos Global Communications (StratosITek)

6.17: Maritime Telecommunications Network (DirectNet)

6.18: Verestar

6.19: Clear Channel Satellite Services (Insat)

6.20: IP Access International

6.21: SkyFrames

6.22: Immeon Networks

6.23: Mainstream Data

6.24: 7CZ International

Section 7: Latin America

7.2: RStar

7.3: Andesat

7.4: Star One (Easyband)

7.5: Intelsat Broadband Service Re-Sellers

7.5.1: Globalsat

7.5.2: Axesat

7.5.3: Etapa Telecom

7.5.4: ConexSat (Informatica)

7.6: Hispamar

7.7: Hughes Telecom Americas

7.8: Telecom Telegrafos (Telmex)

7.9: Puerto Rico Department of Education (Mobile Universe)

7.10: Velconet

7.11: InterDirec (e-Mexico)

7.12: GESAC

7.13: Ministry of Education, Peru

7.14: Motorola Commercial, Government & Industrial Solutions (COHCIT)

7.15: Telespazio Brazil

Section 8: Asia and Australasia

8.1: Overview of the Market

8.2: IPStar

8.2.1: IPStar Australia 138

8.3: India

8.3.1: HCL Comnet

8.3.2: Bharti Broadband Networks (SkyMantra)

8.3.3: Comsat Max

8.3.4: ITC e-Choupal

8.3.5: Edusat

8.3.6: Hughes Escort Communications

8.3.7: Tatanet (Nelco)

8.4: Philippines

8.4.1: DreamVSAT

8.4.2: CPNet (Textron)

8.4.3: Eagle Broadcasting Corporation

8.5: Japan

8.5.1: Japan Satellite Systems (JSat)

8.5.2: Superbird Direcway (DirecPC VSAT)

8.6: China and Hong Kong

8.6.1: ChinaCast

8.6.2: CABTS

8.6.3: Guangzhou W148

8.6.4: China Satcom

8.6.5: Nanjing Toptry China Spacenet

8.6.6: SpeedCast

8.6.7: IsatAsia

8.7: Korea

8.7.1: Koreasat

8.8: Australia and New Zealand

8.8.1: Optus SatWeb

8.8.2: eSat Skyband

8.8.3: Telstra BigPond Broadband 2-Way Satellite

8.8.4: NewSat (Multimedia)

8.8.4.1: Apertura (Australian Private Networks)

8.8.5: Satteline Communications

8.9: Other Countries in Asia

8.9.1: Fiji Telecom

Section 9: Middle East

9.1: Orbit Data Services

9.2: Falconstream

9.3: IP Planet (VipSat)

9.4: High Capabilities Technologies

9.5: Stormsat

9.6: Gulfsat

Section 10: Africa

10.1: Overview of African Communications

10.2: UUSat

10.3: M-Web Satellite Internet

10.4: Accelon (formerly IP Direct)

10.5: Disitron Satellite Group

10.5.1: Koochi Communications

10.6: Telkom Kenya

10.7: Alldean Satellite Networks

10.8: iWay (Afsat)

10.9: Ethiopia Telecommunications Corporation

10.10: Telkom SA Spacestream Express

10.11: VStar (Sentech)

10.12: AfriHub (SkyTerra)

10.13: GS Telecom

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