Abstract
Abundant Capacity Results in Competitive Pricing and Low Fill Rates
The large number of global and nationalized operators and private regional players in Asia provide ample satellite facilities, but transponder prices have been falling for an extended period because of persistent transponder overcapacity. Significant transoceanic transponder capacity is flooding the region and land mass requirements are not always evenly matched. The excess supply has resulted in a pricing war, and fill rates are expected to drop even further before stabilizing. This slashing of prices results in operators commoditizing capacity. However, Asia is a strong market for satellite services and operators have viable options such as avoiding competition on price alone, entering into capacity-sharing arrangements, and launching smaller satellites.
This new research service from Frost & Sullivan analyzes the Asian commercial geostationary satellite transponder markets and examines drivers and restraints that affect the supply and demand for leasing transponder capacity. It provides a detailed demand analysis of leased transponder capacity in the C, Ku, and Ka frequency bands along with a market share analysis by operator and qualitative discussions of factors such as the regulatory environment and operating strategies.
Wide Coverage and Reliable Point to Multi-Point Access Ensures Demand for Satellite-Based Communication Services
Satellites are a powerful medium for multi-point services, with negligible incremental costs on the addition of a new user. Terrestrial-based technologies are not capable of providing equivalent coverage in as cost effective a manner as satellite systems, in terms of allowing a simple ground terminal access to communication services. This is particularly important in a region such as Asia, where most of the market is land-locked. Terrestrial technologies always incur extra costs as users are added to the system and this is a significant disadvantage in a region such as Asia, given the large population and vast area.
"The negative aspect of this potential is that while urban areas tend to be well served with lower cost terrestrial systems, rural areas where satellite may be the only option, also have the fewest customers," say the analysts of this research service. The upshot of this is that satellites will always play a key role in the video services market, which is the leading demand driver for satellite services in Asia.
Rapid Growth in New Service Areas Offers High Market Potential
Video, commanding over half the total demand will be a source of stable, reliable revenues. Other contributors to this growth are the increasing pay-TV penetration, DTH platforms in new markets such as India, and the need for corporate networking. Vast parts of interior Asia are coming online only now, while falling equipment prices and the gradual easing of regulations make satellite solutions a very efficient option. "Operators in this region should ally more closely with the service vendors in order to best benefit from this growth area" add the analysts.
View Cart
