New Growth Predicted for Private Satellite Business Networks

Information Today, June 1988 | Go to article overview

New Growth Predicted for Private Satellite Business Networks


New Growth Predicted For Private Satellite Business Networks

In an age when instand information means survival in business, the future looks bright for satellite operators, carriers and equipment manufacturers who target the business community's need for cost-effective transmission of information. The market for business telecommunications via private satellite networks has just begun to be exploited, according to a new 364-page study, "Private Satellite Business Network Terminals In The U.S. (#A1854), released by Frost & Sullivan.

Revenues from satellite systems serving the private business sector are expected to rise (in constant 1987 dollars) from $567 million in 1987 to $1.5 billion by 1992, the report forecasts.

Private network applications will account for an increasing portion of total transponder capacity. Currently, there are 24 percent of C-band transponders and 35 percent of Ku-band transponders used for private business network applications on U.S. domestic satellite systems. Frost & Sullivan projects capacity to gradually increase by about one percentage point per year in the C-band and two points per year on the Ku-band.

Fiber optic technology, which displaced satellite as a more cost-efficient point to point heavy traffic medium, as well as launch failures in recent years have slowed the growth of private satellite business networks, which really began to emerge in the '80s. "But a new development has breathed fresh air into satellite communications for business," the report points out. That development is the application for point-to-multipoint and multipoint-to-point networks. The very-small-aperture terminal (VSAT) provides this capability and is the most important development to come out of the satellite equipment market.

The most promising potential in the growth of the business market, according to Frost & Sullivan, is in the newer types of private network services such as business video broadcast, interactive data, data broadcast and audio broadcast.

The greatest growth in types of earth stations will be in data VSAT and video network receceive stations. Data VSAT, which presently represents a 20 percent share of the total constant dollar market for earth stations, is expected to capture a 36 percent share in five years. …

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New Growth Predicted for Private Satellite Business Networks
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