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Asia-Pacific's Satellite Broadband Market Is Set to Fly
By Computerworld
 

SINGAPORE – The Asia-Pacific satellite broadband Internet access market is set to skyrocket because of favorable market conditions and ongoing developments in satellite broadband technologies. And putting its finger in this growing pie is Singapore Telecommunications (SingTel), which recently launched its $1.64 million Internet protocol satellite broadband infrastructure and service.

Christopher Baugh, principal analyst at U.S.-based Northern Sky Research, estimates that in the best-case scenario, satellite broadband access in Asia Pacific would hit $4.51 billion in combined residential and enterprise service revenue by 2006. Northern Sky Research is an international market research and consulting firm specializing in satellite broadband technology and Internet applications.

In a breakdown of the estimates, Baugh says that in a high-growth scenario, the enterprise segment will yield a whopping $2.57 billion in revenue while satellite broadband access revenues from residential users will rake in $1.95 billion. Even in a low-growth scenario, service revenue from the enterprise market is expected to reach $1.07 billion, while that from residential users will stand at $811.2 million. High- and low-growth forecasts represent different supply scenarios where growth in demand parallels available supply.

This is the right time for players to capitalize on the satellite broadband opportunity, Baugh said during the recent Asia-Pacific Satellite Specialist Conference held in Singapore.

This is especially so in Asia-Pacific and in Europe where the high incidence of information-intensive small and medium enterprises and SOHOs (small office/home office), represent a "large pool of demand," explaineds Baugh. Other accelerators for satellite broadband access are residential users without options for terrestrial access such as integrated services digital networks (ISDN) or digital subscriber lines (DSL), and existing enterprise VSAT (very small aperture terminals) customers like Fortune 500 companies which need to dispatch bandwidth intensive data regularly.

 

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