Pioneer Consulting Predicts Market Opportunity for Broadband Satellite to Reach $27 Billion by 2008

Market research firm Pioneer Consulting expects the total market for broadband satellite to reach $27B by 2008 and that "broadband satellite access service offers the largest total worldwide market opportunity for both service providers and equipment manufacturers." This, despite their view that, "The current state of the broadband satellite industry is not as bright as many once hoped. In fact, the very viability of the industry is a question." So how does the industry attain the predicted 60% compound annual growth rate?

BOSTON, Jan. 16, 2002

Broadband Satellite Access Service Offers the Largest Total Worldwide Market Opportunity for Both Service Providers and Equipment Manufacturers

The current state of the broadband satellite industry is not as bright as many once hoped. In fact, the very viability of the industry is a question. But according to a newly released study by Pioneer Consulting, LLC, the industry can survive. With improvements in the price / performance of broadband equipment and services, a market for global broadband connectivity will emerge. According to Pioneer Consulting's latest report, Broadband Satellite: Analysis of Global Market Opportunities and Innovation Challenges, the total worldwide market opportunity for broadband satellite service providers will reach nearly $27 billion by 2008 with Broadband Satellite Access service comprising the largest market opportunity for a single Broadband Satellite service, soaring from$336 million in 2001 to $13.4 billion in 2008.

Exhibit E.11: Total Market Opportunity for Broadband Satellite Service Providers (Millions USD)

	2001	2008
Trunking/Backbone	$485	$7,565
Mediacasting	$241	$6,042
Broadband Access	$336	$13,353
Total	$1,062	$26,961

Source: Pioneer Consulting

"The growth of broadband satellite services is expected to continue, driven by a rapidly expanding market for high-speed Internet access," says Mike Massey, senior market analyst, Broadband Satellite for Pioneer Consulting. "The major constraint to growth will be the relatively high cost of satellite capacity, which hinders broadband satellites competitive capability against alternative technologies."

The Broadband Access sector is also expected to represent the largest market opportunity for equipment manufacturers. The report predicts the aggregate market opportunity for equipment manufactures will grow from $0.6 billion in 2001 to $1.6 billion by 2008 with Broadband Access accounting for a market share worth $1.2 billion.

Exhibit E.12: Total Market Opportunity for Broadband Satellite Equipment Vendors (Millions USD)

	2001	2008
Mediacasting	$71.6	$470.2
Broadband Access	$480.5	$1,179.4
Total Worldwide	$552.06	$1,649.57

Source: Pioneer Consulting

"Broadband access satellite services will find acceptance primarily in those cases where more cost effective alternatives, such as DSL and cable modem service, are not available," explains Paul Kellett, senior director of research at Pioneer Consulting. "Unlike other broadband access technologies satellite-based broadband connectivity provides ubiquitous coverage."

The Broadband Satellite: Analysis of Global Market Opportunities and Innovation Challenges report takes an in-depth look at the industry's key players, markets and technologies, as well as market opportunities and challenges. The three major broadband satellite service markets - Trunking and Backbone, Mediacasting and Broadband Access - are each analyzed identifying market opportunities for broadband service providers and equipment manufacturers for the major regions of the world - North America, Europe, Asia Pacific, Latin America and Africa and the remaining regions of the world - between 2001-2008. The report can be purchased in both hard copy and electronic formats. A table of contents and an abridged version of the executive summary are available at or by contacting Pioneer Consulting at (617) 424-5200.

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Cahners In-Stat/MDR Predicts Internet Access Devices to Grow Almost 42% Per Year to 2005

The worldwide market for Internet access devices (personal computers, mobile telephones, Internet set top boxes, and Internet and smart appliances) will grow at an overall annual rate of 41.6 percent in unit terms between 2000 and 2005, according to Cahners In-Stat/MDR.

The high-tech research firm reports that the PC and mobile phone segments currently comprise just over 93 percent of the industry and will continue to represent the majority throughout the forecast period. While the PC and mobile phone segments will have the greatest unit shipments, smart appliances will have the highest Compound Annual Growth Rate (CAGR) at 100.8 percent.

"Despite our optimistic forecast for this market, there are still several factors affecting all of its individual segments," said Cindy Wolf, an analyst with In-Stat/MDR. "In the coming years many of these product segments will face increased competition from each other as device functionality converges."

The report, "Forecast and Analysis of the Worldwide Internet Access Device Market: 2000-2005" analyzes and forecasts the worldwide Internet Access Device industry. Worldwide unit shipments for the period of 2000-2005 are forecasted for each segment.

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Broadband Needs a Push-Start

The chicken-and-egg analogy is often used to describe economic situations where a new market is developing and demand is a function of supply and supply a function of demand. Consumer broadband is a perfect example. The Washington Post's Jonathan Krim looks at the benefits of broadband usage as an economic catalyst and at the barriers to broadband adoption.

Washington Post

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