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Participants to Look at Opportunities in the African Transponder Market Beyond 2010 Says Frost & Sullivan - Until recently, the African transponder market had experienced a dearth in supply and an ever-increasing demand for what is considered to be a precious commodity
Participants to Look at Opportunities in the African Transponder Market Beyond 2010 Says Frost & Sullivan

 

PRZOOM - /newswire/ - Cape Town, South Africa, 2010/05/03 - Until recently, the African transponder market had experienced a dearth in supply and an ever-increasing demand for what is considered to be a precious commodity.

   
 
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There are many instances of capacity on satellites being already fully sold before the satellites are even launched. It is however time for participants in the African transponder market to look at the considerable opportunities that await beyond 2010.

New analysis from Frost & Sullivan (space.frost.com), African Transponder Market, finds that the market earned revenues of $1,080 million in 2008 and estimates this to reach $1,459 million in 2015.

If you are interested in more information on this study, please send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"The demand for reliable connectivity has acted as a major market driver for the African transponder market," notes Frost & Sullivan Research Analyst Lindsey McDonald. "Although this is true of all vertical sectors, it is interesting to note that the requirement for corporate networks continues to increase."

Multinational companies have identified Africa as an important area for growth and this is reflected in the flow of Foreign Direct Investment (FDI) into the continent. These companies list a reliable Internet connection as an absolute necessity and given that there is a lack of terrestrial infrastructure, satellite capacity is critical.

One of the greatest challenges facing the African transponder market is the lack of regulatory harmonisation. There are about four regional bodies that continue to work to improve this situation. However, the associated red tape does hamper further development and operators are challenged to work with regulators in this regard.

"Regulatory uncertainty and a lack of space in the C-band spectrum makes it a challenging environment for operators," explains McDonald. "Although the C-band is recognised as the most reliable satellite spectrum, it is also the most congested and as a result there is a growing tendency for operators to offer their clients services in the Ku-band, which comes with its own challenges."

For instance, the characteristic inclement weather of equatorial Africa threatens the quality of the services in the Ku-band. Therefore, further innovation and development of Ku-band technology is required to maximise the opportunity present in this spectrum.

New operators have brought with them localised expertise at more favourable pricing levels and have, for the most part, been able to offer a very good quality of service. As a result, more established operators are challenged to differentiate through their high-quality offerings and their ability to lead industry innovation.

"Price is the key competitive differentiator for satellite operators in Africa, as the market is price sensitive," concludes McDonald. "Pricing is likely to remain a key area of concern and opportunity for differentiation over the long term."

African Transponder Market is part of the Space Communications Growth Partnership Services programme, which also includes research in the following markets: Angolan Mobile Market, South African Contact Centre Technologies Market, Sub Saharan African CDMA Markets and, Mozambique Mobile Communications Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

African Transponder Market / M499

 
 
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Participants to Look at Opportunities in the African Transponder Market Beyond 2010 Says Frost & Sullivan

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