Applications in video distribution and other emerging networking applications will be the main drivers of growth in satellite services and the leasing of transponders in the Asia-Pacific region. The ability of operators to understand these trends and develop strategies to take advantage of them will ultimately determine their success in the market.
New analysis from growth consulting company, Frost & Sullivan (spaceandcommunications.frost.com), Commercial Geostationary Transponder Market in Asia-Pacific, reveals that transponder leasing in the region earned revenues of US$1.48 billion in 2006 and is estimated to grow at a CAGR (compound annual growth rate) of 5.1 percent (2007-2011) to reach US$1.89 billion by end-2011.
If you are interested in a virtual brochure, which provides service providers, vendors/manufacturers, end users, and other industry participants with an overview of Commercial Geostationary Transponder Market in Asia-Pacific, then send an email to Sarah Lourdes, Corporate Communications, at sarah.lourdes[.]frost.com with your full name, company name, title, telephone number, fax number and email address. Upon receipt of the above information, an overview will be sent to you by email.
Video and direct-to-home (DTH) satellite services are expected to account for approximately 59.5 percent of the total leased transponders in the Asian market by 2011. This will be driven by growth in the scope of video programming and the bandwidth required for high-definition programming.
Internet trunking and telephony applications over satellite transmission however are expected to remain flat or decline over the same period (2007-2011).
"The explosion of video applications and the consequent need for greater bandwidth to distribute them is driving growth in the commercial satellite transponder market," notes Frost & Sullivan research manager Reggie Helton.
However, intense competition from terrestrial wireline and wireless technologies may limit the deployment of satellite applications. Regulations in certain Asian countries also present barriers to entry and may lead to slower adoption of satellite services. The inherent limitations in satellite technology, such as vulnerability to weather conditions, will also remain an important hurdle for satellite operators.
Asia has more commercial satellite operators than any other regions in the world, accounting for 34 percent of the total global satellite transponder capacity. Even so, utilization rates registered an average of only 34.7 percent in 2006. With such high under-utilized capacity and 24 active satellite operators in the region vying for limited market demand, competition is fairly intense.
"In the face of intense competition, satellite service providers must develop new strategies to overcome significant obstacles," explains Helton. This includes partnerships between operators and the introduction of new applications in emerging services.
"Low transponder utilization rates in Asia will require operators to consider forming alliances with those who already have satellites in orbit before deciding to launch new capacity. While this will serve to relieve price pressures from over capacity, developing capabilities in emerging applications will help generate additional revenue streams," he adds.
The Commercial Geostationary Transponder Market in Asia-Pacific study is part of the Space & Communications Growth Partnership Service program, which also includes research in the following markets: VSAT (very small aperture terminal) and hybrid networks; VSAT narrowband and broadband sites and equipment; mobile satellite services; video broadcasting; rural connectivity via VSAT; and digital signage. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Analyst interviews are available to the press.
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