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Enterprise Broadband Key to Satellite Market Growth, Study Says

According to Northern Sky research, Enterprise IP Applications Via Satellite to Create $9.2 Billion Market by 2006 (July 31, 2001)
Enterprise broadband satellite services will experience accelerated growth over the next 5 years, according to a market research report recently released by Northern Sky Research entitled "Broadband Satellite Markets: A Comprehensive Analysis of Trends and Opportunities." The 400-page report provides a complete assessment of the global broadband satellite market, including market sizing for multiple enterprise via satellite applications, competitive trend analyses and a thorough review of enterprise applications slated to fuel growth.

Once relegated to the role of niche technology, satellites are rapidly becoming a player in the enterprise IP space. Given cutbacks in technology spending, satellites reduce network costs by offering enterprises a more cost-effective way to distribute IP content and tie in remote sites. In addition, the trend towards globalization is increasingly met by either high terrestrial broadband service prices or a complete lack of adequate terrestrial infrastructure. Lastly, early enterprise content opportunities in financial services and medical segments are already paving the way to demand from multiple enterprise segments.

"The enterprise market continues to represent an attractive opportunity for broadband satellite companies," according to Christopher Baugh, Principal Analyst and Founder of Northern Sky Research and author of the report. "Our extensive discussions with key decision makers in enterprises around the world revealed an overwhelming demand for cost effective, technically sound IP solutions. Satellites offer these qualities through inherent support for remote office access and IP broadcast applications. With IT budgets, networks already in place and a known number of users tuned to content, enterprises will likely represent the most stable market for broadband satellite companies over the next 5-10 years."

These trends all point to a positive long-term enterprise market for broadband satellite players. In fact, the market for enterprise broadband access and VSAT networking is forecast to grow from $272 million in 2001 to $7.1 billion in 2006. Also significant is the growth slated to take shape in the enterprise IP multicasting and content distribution market. This market is forecast to grow from $150 million in 2001 to $2.1 billion in 2006.

Enterprise IP Via Satellite Services Market (2001-2006) -- $billions

Satellite Segment
2001 2002 2003 2004 2005 2006

Broadband Access and VSAT Networking
$0.272 $0.925 $2.335 $4.130 $5.478 $7.160

IP Multicasting and Content Delivery(Intranet, B2B)
$0.152 $0.262 $0.451 $0.737 $1.246 $2.101

Satellite operators, service providers and equipment vendors/manufacturers profiled in this report include: Air TV Ltd., AIRIA, Akamai, Aloha Networks, AlphaStar/SkyCrossing, American Multiplexer Corporation, AsiaSat/SpeedCast, Boeing, British Telecom Broadcast Services, BroadLogic, Cidera, COMSAT Mobile Communications, Connexion by Boeing, Digital Island, DirecPC- Hughes Network Systems, EchoStar Data Networks, EMS Technologies Inc., Enron Broadband Services, Europe Online, Europe*Star, Eutelsat, GE Americom, Gilat Satellite Networks, Gilat/Spacenet, Global Convergence Technology, GlobeCast, Harmonic Data Systems, Helius, Hughes Network Systems, iBEAM, iDirect, In-Flight Network, InfoLibria, Inktomi, Inmarsat, Intelsat, International Datacasting Corp., IP Planet, Ipricot, Irdeto Access, KenCast, Kingston MediaStream, LMGT, Logic Innovations, Loral Cyberstar, Mentat, Microspace Communications, Multicast Media, NDS, Nera, NetSat Express, New Skies Satellites, Norsat International Inc., OrbLynx, PanAmSat, Radyne ComStream, Raytheon, ReliaCast, SCM Microsystems, SES-Global / Kokua Communications, SkyStream Networks, Space Communications Corporation, SpaceBridge, SSE Telecom, StarBand, StarOne, STM Wireless, Tachyon, Telesat Canada, Tenzing Communications, Terayon, Thomcast, Verestar, ViaCast, ViaSat, Vipersat Networks, WildBlue, Williams Vyvx, Xantic.

Northern Sky Research is an international market research and consulting firm specializing in broadband technology and Internet applications. Northern Sky Research primary areas of expertise include satellite technology, cable and wireless networks, and content/new media markets. With extensive expertise in all geographic regions and a number of broadband sectors, Northern Sky Research is a leading provider of in-depth market insight and analyses.

For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit

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Related Keywords:DTV Professional, Digital Media Net, Enterprise broadband satellite services, accelerated growth, market research report, Northern Sky Research, Broadband Satellite Markets: A Comprehensive Analysis of Trends and Opportunities, global broadband satellite market, market sizing, multiple enterprise via satellite


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