Satellite Broadband Is For Residential Users Also
The consumer satellite broadband market is increasing rapidly
. A study conducted by NSR showed that satellite broadband sales from the consumer market will surpass the revenues from the business market for very small aperture terminal (VSAT) services by 2013. The report highlights the promising future of the satellite broadband market for residential users.
Shift from Business to Residential Satellite Broadband Market
Traditional satellite broadband carriers wireless solutions are mostly designed to suit the needs of the enterprise market. Telecommunications operators, broadcasting industries, military agencies, oil companies, shipping lines, and airline carriers are some of the largest users of satellite broadband services. Software and hardware requirements needed to use satellite links used to be too expensive for consumers. But now, the market is increasingly getting diversified. The industry is now offering more powerful but smaller dishes which can be used in rural homes or private vehicles. Although software and hardware expenses are still quite high compared with the typical Internet modems, satellite broadband technology is increasingly being deployed in many rural areas for the enjoyment of both residents and businesses. The government now recognizes the benefits of satellite broadband technology and so develops funding schemes to expedite the development of national broadband infrastructures.
Global industrial statistics showed that the number of satellite broadband subscribers in North America is exceeding those of the broadband VSATs for institutional markets. Also, single site capacity is exceeding those of corporate and public networks. By 2017, global satellite broadband revenues are expected to reach $3.86 billion, compared with $823 million in 2007. The size of global satellite broadband clientele is expected to surpass four million by 2016, according to NSR Senior Analyst Patrick French. The rise of the consumer market for satellite broadband is a big achievement for the industry, which has invested billions of dollars to build infrastructural foundations for affordable wireless Internet.
The phenomenal growth of the satellite broadband market is also expected to benefit the VSAT networking sector. The two markets seem to be interconnected, said French. Technological innovations in one sector are likely to benefit the other. NSR estimated VSAT networking revenues to reach $2.6 billion in 2017.
Satellite Broadband Subsidies for Consumers
Subsidies are available to make satellite broadband connection a reality in rural areas. Rural communities are the priority of various satellite broadband projects in Australia, the US, Africa and Europe. Small towns and villages in less industrialized regions are often beyond the reach of mobile broadband providers. Since these areas cannot be served by cellular backhaul sites which are densely concentrated in urban spots, the only way to bring wireless signals there is through satellite backhauling. In some countries, the government is shouldering a portion of satellite dish cost and subscription plan. Satellite broadband projects are on the rise in countries like Afghanistan, Ethiopia, Egypt, Australia, the U.S., India, South Africa, Iraq, Saudi Arabia, UAE, China, Japan, Indonesia, Malaysia, Philippines, Papau New Guinea, Canada and Kazakhstan.
Satellite phones are becoming more affordable for rural residents. Moreover, mobile backhaul applications are on the rise, giving consumers more reasons to subscribe to satellite digital plans.
The limited bandwidth resources of land-based carriers is a big obstacle to universal wireless communications. But thanks to satellite broadband technology, mobile backhaul can operate on alternative wireless channels that are readily available to underdeveloped areas with no fiber optic lines or cables.
by: Kirk Pattinson
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