"The tripling of TV signals in the last five years, growth in cellular backhaul requirements and the addition of more than 15,000 VSATs for various vertical segments have all contributed to the emergence of new requirements," said Pacome Revillon, CEO of Euroconsult and editor of the report. "The significant addition of satellite capacity supply has resulted in a fill rate decrease and in greater competition and pricing pressure."
Multiple drivers support a strong future increase in the use of satellite communication services, including:
- Digital TV growth is still only in its early phase; the transition process to digital terrestrial television has just begun. In parallel, satellite pay-TV, despite the signing of close to 10 million subscribers in the last ten years, is only beginning to penetrate the market.
- Mobile penetration keeps increasing along with universal access requirements, while 3G and potentially 4G expansion will create new new connectivity requirements.
- A variety of segments, such as oil & gas, banking, mining, and government networks will require more connectivity as operations either diversify or expand geographically.
- A number of new enterprise hot spot markets are evolving particularly in East and West Africa in addition to the historically strong VSAT markets like South Africa, Nigeria, Angola, Kenya and Tanzania. This should contribute to overall market growth across Sub-Saharan Africa
- Broadband access for consumers and enterprises offers new
opportunities on the back of new HTS capacities and services. Also,
the usage of HTS capacity for trunking should increase for
landlocked countries like DR Congo and South Sudan at least in the
short to medium term as fiber availability remains limited and