While satellites hold tremendous potential for serving large populations regardless of locale or existing wireline infrastructure, emerging applications must endeavor to prove themselves in the competitive telecommunications industry.
New analysis from Frost & Sullivan, Emerging Satellite Applications Markets, reveals that this industry generated revenues of $26.2 million in 2000 and is projected to exceed $324 million by 2007.
“Satellite service providers have been probing the potential markets for business videoconferencing, distance learning, and telemedicine for a number of years now.
“The ability of satellites to reach end users with poor terrestrial connectivity has been touted as a clear advantage for satellite service providers.
“Yet, these markets have so far failed to break out of a few narrow niches and have not begun to generate serious revenues for satellite service providers,” states Frost & Sullivan Research Analyst Patrick French.
Cost has arisen as the primary drawback to widespread adoption of satellite services. As a result, these applications will remain constrained until satellite transport cost becomes equivalent with terrestrial networks.
In the interim, the short-term success of the industry will be dependent upon individual firms taking proactive actions to educate consumers about satellite offerings, thereby aiding adoption rates.
“As videoconferencing is adopted by more and more enterprises, the technology will become a mainstream business application. Eventually enterprise acceptance of the application will allow it to migrate more vigorously to the small office, home office (SOHO) and telecommuter environment.
“It is here where satellites will have a chance to compete more favorably with terrestrial solutions that may not have a sufficiently high quality of service for all end user needs,” says French.
Distance learning applications hold the most promise for satellite-based services. The myriad of these applications merges well with satellite’s strength in broadcasting, and the fact that the majority of these solutions employ one-way video with audio return allows for a more economical usage of satellite capacity.
U. S. Emerging Satellite Applications Markets Report: 7924
