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Latin America Geostationary Commercial Satellite Market - Future demand for video and networking applications drive growth of geostationary commercial satellite transponder market
Latin America Geostationary Commercial Satellite Market


PRZOOM - /newswire/ - Palo Alto, CA, United States, 2006/10/31 - Future demand for video and networking applications drive growth of geostationary commercial satellite transponder market.

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The importance of satellite services in the communications market is undisputable. Though the expansion of newer networks such as fiber, wireless and mobile and the changing competitive scenario have posed a challenge for the satellite market, the demand for satellite transponders is likely to keep growing due to the need for video and corporate networking applications.

New analysis from Frost & Sullivan, Latin America Geostationary Commercial Satellite Transponder Market, reveals that the market earned revenues of $708.5 billion in 2005 and estimates to reach $1,038.6 billion in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Latin America Geostationary Commercial Satellite Transponder Market, then send an e-mail to Mireya Castilla, Corporate Communications, at mireya.castilla[.]frost with: your full name, company name, title, telephone number, city, state and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

“Rising importance of corporate networking applications such as voice over Internet Protocol (VoIP) and video-conferencing and video applications such as video distribution and DTH, expects to create and sustain the demand for satellite transponders,” say Frost & Sullivan Research Analysts Andrés Sciarrotta. “This expects to contribute significantly to the total number of transponders leased, in fact, video applications alone expect to account for approximately 49 percent of the total leased transponders in the future, whereas networking is likely to contribute 26 percent.”

The satellite market participants are focusing on developing and promoting new applications such as e-learning, telemedicine, offshore applications, travel information and communications, which expect to have a positive impact in the demand for satellite transponders. In addition, there is an expected increase in the demand of Ku-band in the future that is likely to result in a balance of usage for both C-band and Ku-band transponders.

However, low levels of income and industrialization limit the potential for telecommunications applications in most Latin American countries, thereby restraining the development of the satellite market. The average transponder price in 2005 had shown a small increase over 2004. Prices expect to experience pressure mainly due to the rapid growth of terrestrial technologies. Newer and more expensive applications such as high definition TV (HDTV) and direct Internet access will take longer time to be adopted and to become affordable for consumers in Latin America consequently affecting the revenue potential of the market.

“The satellite market in Latin America has experienced price pressure in the past that adversely affects smaller companies as it is not a sustainable scenario for them,” explains Felipe Rego and Alex Zago . “In addition, intense competition among participants in this market, due to the mergers and acquisitions (M&A) leads to a lopsided supply-demand ratio with the suppliers possessing more than they need, thus increasing the bargaining power of large satellite service operators."

In a move to survive in this increasingly competitive scenario, smaller companies should try to differentiate themselves either through value-added services such as post-sales support or by enhancing the quality of services offered. It would also be advisable for them to utilize niche markets such as e-learning, data content distribution, IPTV and VoIP– in the case of corporate networking applications.

The Latin America Geostationary Commercial Satellite Transponder Market is part of the Space Communications Growth Partnership Service, and it provides an overview of the satellite market in Latin America and Caribbean and observed trends that are likely to impact the current status of the market. It also analyzes the following technologies: C-band, Ku-Band, and discusses these application sectors: video, networking, Internet, and telephony applications. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies econometrics, and demographics.

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Latin America Geostationary Commercial Satellite Market

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Contact: Mireya Castilla 
210.247.3830 mireya.castilla[.]
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