Global Consumer Satellite Broadband Internet Market - Technology

Report Summary

Currently, affordable satellite broadband internet service is offered in some or all of North America, Europe, and Asia. By the end of 2010, there were 1.5 million subscribers. Over the next seven years, the number of subscribers to satellite consumer broadband Internet will more than triple. New satellites and technologies will enable satellite consumer broadband Internet service prices and bandwidth capacities to rival those of DSL Internet access. Regional Revenue is broken out by North America, Europe, and Asia, as these are the only regions with current consumer satellite Internet service. This report also weighs the Consumer Satellite Broadband Internet Market against wireline and wireless-access markets.

Satellite broadband Internet subscriber adoption is driven by a lack of alternative Internet access services. Consumers select satellite broadband Internet service when there is no other broadband alternative services due to satellite broadband Internet access' historically lower speeds and higher prices relative to terrestrial alternatives.

Current consumer satellite high-speed Internet service costs roughly twice that of comparable wireline alternatives but is still relatively affordable for middle- and working-class households in the developed world.

Most consumer satellite service plans cost between ${__} and ${__} per month and offer download and upload speeds of {__} to {__} megabits per second (Mbps) and {__} to {__} kilobits per second (Kbps), respectively. A table comparing satellite to competitive access alternatives is presented on the next slide.

Future Market Projections

New higher throughput Ka-band satellites have the potential to revolutionize the satellite broadband Internet industry. These satellites are able to serve hundreds of thousands, and even millions, of consumers.

Wireline telecommunications lines to remote homes and businesses exist in a majority of the developed world. Countries that began economic development and industrialization over the past several decades or have yet to modernize do not have a similar wireline infrastructure. For example, the United States has 2 wireless lines for every wireline, whereas India has xx wireless lines for every wireline. Even though the number of wireless lines exceeds that of wirelines in emerging markets, satellite broadband Internet access will be more accessible and cost effective than either wireless or large fiber rollouts. Consumers in developing nations generate a lower average revenue per user (ARPU) than in developed nations. Therefore, longer payback periods for wireline and wireless infrastructure investments will spur the growth of satellite broadband Internet in emerging markets.

Satellite Broadband is Going Global

Companies in North America that provide satellite broadband Internet access, such as ViaSat's subsidiary, Wild Blue, and the market share leader, Hughes, have grown in the last several years. The market in North America reached the one million subscriber milestone in early 2010.

The world market for consumer satellite service is ${__} billion per year with {__} percent of the market in North America. Over the next decade, the market will grow rapidly, attracting more subscribers and generating more revenue. Subscription rates and market revenue in Europe will overtake rates and revenue in North America.

Hughes and ViaSat are selling their Ka-band technology to Avanti and Eutelsat, respectively, in Europe. They will launch collectively three satellites over the next few years. Currently, the market in Europe has {__} to {__} million households that depend on satellite service for Internet access.

New Ka-band satellites offer the potential for service providers to compete with the pricing and speed range of DSL Internet services.

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