Broadband Market and SES Video Reach: Space Research Round-Up for April 2

Great observatories views of the Milky Way. Photo: NASA

In this regular round-up, Via Satellite looks at recent research reports in the space and telecommunications arena. This installment features a look at Euroconsult‘s first satellite broadband market analysis, a survey of airline attitudes about In-Flight Connectivity (IFC), and SES‘s annual broadcast report. 

Euroconsult Predicts $13 Billion Satellite Broadband Market By 2029

Euroconsult predicts the satellite broadband market will be worth close to $13 billion in service revenues by 2029. This is one of the key findings of its new report “Universal Broadband Access,” the consultancy’s first report on the subject. Euroconsult found that in 2020, 43 million people were connected to broadband via satellite, roughly 1% of the world’s connected population. This number is expected to grow to 110 million in 2029, with Latin America adding roughly 20 million users and Sub-Saharan Africa adding 16 million.

Euroconsult sees this market as having huge potential for satellite players over the course of the 2020s, with huge increases in services and capacity revenue for satellite players. Euroconsult says with 46% of the world’s population still unconnected, satellite broadband will be key to bringing essential services to sparsely populated regions where extending terrestrial networks are not economically feasible.

“Overall, the broadband ecosystem will be central to building the post COVID-19 world, notably by making sure universal equitable access to broadband services is part of the new normal. We have a long way to go to achieve this, but satellite will be key to reaching many who are currently unserved or underserved,” Dimitri Buchs, senior consultant at Euroconsult, said in a statement. 

Intelsat Surveys Aviation Market on IFC Trends 

In a recent survey, Intelsat asked airlines, service providers, and original equipment manufacturers about the future of IFC. The consensus is that more customers expect to be connected, and the aero industry wants to offer it for free. More than half — 65% of respondents — expect there to be an increase in the number of passengers who expect to be connected, and almost half want passengers to be able to be able to browse the internet and stream content for free. 

But price is an issue. Intelsat’s survey found that Wi-Fi session prices were the No. 1 roadblock to increasing IFC takeup rates. The industry hopes to offset its own cost for this premium connectivity. Almost two-thirds — 72% of respondents — think service expenses could be offset through partnerships with online retailers, social apps, or streaming services. There are other hurdles to the IFC experience. Poor internet connection was the second most common roadblock, more than payment friction and understanding how the service works, among other options. 

Regardless of the challenges, 85% of respondents believe IFC is a key differentiating factor for airlines, so this is clearly an area where airlines are looking to the satellite industry to fulfill a need. 

SES Reports Broadcast Growth in Europe and Africa in 2020 

SES satellites brought TV to 361 million homes worldwide, the operator reports in its annual “Satellite Monitor” market research, released March 23. In 2020, SES broadcast market grew across Europe by about 2 million households, and in Africa by about 2 million households. Overall, SES’s reach to TV homes was marginally down in 2020 because of a reporting change in India.

In particular, TV reach increased in Ethiopia because of the establishment of Ethiopia’s first-ever dedicated TV platform, Ethiosat, on NSS-12 at 57 degrees East. TV penetration in Ethiopia has tripled compared to four years ago and was at 49% at the end of 2020. 

In terms of broadcast trends, SES reports that satellite is the platform of choice for HD at 40% of HD TV homes, almost the same as cable and IPTV homes combined. And, SES believes OTT content is complimentary because linear TV has remained stable as OTT has grown 138% over the past five years. 

“The COVID-19 pandemic has driven content consumption higher than ever, and in large parts of the world, linear TV remains the primary choice for people to consume news and information,” CEO Steve Collar commented in the report.