Tuesday, July 17, 2012

NSR: HTS, O3b shakes up wireless backhaul market


In its recently-released Wireless Backhaul via Satellite, 6th Edition, NSR identified significant short- and long-term shift from legacy SCPC and TDMA wireless backhaul systems to satellite-based systems that use High Throughput Satellites (HTS) and O3b.

According to the NSR, market players involved in space segment capacity and end-to-end services will encounter new opportunities and threats will arise as the market shifts. The same applies for companies who handle the equipment segment.

The global satellite backhaul market currently has a $800 million annual revenue base. But the NSR report expected the market's revenue to hit $2.3 billion in 2021.

In addition to their long-term effects, HTS and O3b will impose significant short-term changes in the wireless backhaul industry.



According to Jose Del Rosario, Senior Analyst for NSR and author of the wireless backhaul study, OPEX considerations brought about high bandwidth costs that slowed down the wireless backhaul market's adoption of satellite solutions.

HTs and 03b will make bandwidth much cheaper.  Coupled with the needs of the mobile workforce, market players will benefit from higher penetration levels in key markets for both developing and developed countries.

Furthermore, new programs may lead to a new look at currently-deployed solutions, which may then be abandoned for newer, more cost-efficient platforms. The space segment side has HTS and O3b; del Rosario also looks at cheaper, modestly-sized picocells. These picocells come with the benefit of lower CAPEX, which makes them more attractive for deployment on ground towers, maritime vessels, and commercial aircraft.

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