SOURCE: Pike & Fischer
February 13, 2008 14:54 ET
Satellite Broadband to Serve Nearly 1.3 Million Homes by 2012, Report Concludes
SILVER SPRING, MD--(Marketwire - February 13, 2008) - Satellite-based broadband services --
arguably the best way to get broadband access to hard-to-reach rural areas
-- could be serving nearly 1.3 million U.S. households by the beginning of
2012, market research provider Pike & Fischer estimates. But that will
represent only about 11 percent of total rural homes, P&F notes.
In a new report, "The Satellite Broadband Market Opportunity," P&F sites a
few satellite companies making strides in the broadband market, including
Hughes, WildBlue and ViaSat. Those companies are narrowing the digital
divide by delivering broadband services to rural locations not served by
cable and DSL (digital subscriber lines).
But the satellite companies face some significant challenges in gaining
market traction, the Silver Spring,
MD-based research house concludes. For example, the high costs of launching
satellites will make it difficult for satellite broadband providers to keep
pricing competitive while still achieving a suitable return on investment.
In addition, satellite companies could simply encounter lower-than-expected
demand for their services. Compared to urban residents, the rural
households that the satellite providers are targeting tend to be less
interested in broadband services -- or less able to afford them, says Pike
& Fischer contributing analyst Rich Power.
Pike & Fischer, a BNA company, offers a host of legal and business products
covering the telecommunications industry. The report, "The Satellite
Broadband Market Opportunity," is priced at $699 and is available for
purchase at www.broadbandadvisoryservices.com. For analyst commentary or
to request a briefing, contact Scott Sleek at 301-562-1530, x291,
ssleek@pf.com
For information about Pike & Fischer's Broadband Advisory Services, visit
www.broadbandadvisoryservices.com or contact Jonathan Wentworth Ping at
212-576-8741 / jping@pf.com.