Report: Shift to HTS, O3b Will Dramatically Change SCPC, TDMA Markets

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[Satellite TODAY Insider 07-18-12] A dramatic long-term shift from legacy SCPC and TDMA systems to High Throughput Satellites (HTS) and the O3b constellation could bring both threats and opportunities for companies in the space segment, capacity, end-to-end services and equipment sectors, according to a report published July 17 by analysis firm NSR.

The report, “Wireless Backhaul via Satellite, 6th Edition,” predicted that HTS and O3b would significantly change the wireless backhaul industry in the short-term.

“OPEX considerations, which have hampered market adoption of satellite solutions due to high bandwidth costs, will see a big drop,” NSR Senior Analyst and Report Author Jose Del Rosario wrote. “This, along with the needs of the mobile workforce, will lead to higher penetration levels in key markets for both developing and developed countries.”

These trends, which NSR called “game-changers,” could change the strategic outlook of companies in relevant sectors. Del Rosario added that new HTS platforms would lead to a re-examination and an eventual swap-out of solutions currently being deployed to more cost-efficient platforms.

“Apart from HTS and O3b on the space segment side, more affordable and modestly-sized picocells that lower CAPEX lead to higher adoption in terms of deployments on ground towers, various types of maritime vessels and aboard commercial aircraft,” Del Rosario said in the report.

The study also examined the state of the global Wireless Backhaul via Satellite (WBS) market that, according to NSR, is expected to reach $2.3 billion in 2021. The growth rate represents an almost three-fold increase from the sector’s current $800 million annual revenue base.

The analysis focused on addressable markets and demand trends for the WBS market today in 10 regions, forecasting equipment, transponder and bandwidth demand, as well as the new HTS capacity, O3b and Wideband Ka-band for satellite-based Fixed land towers and mobility platforms for the 10-year period from 2011 through 2021.