Northern Sky Research

NSR Finds Satellite Backhaul Increases Footprint in Telecom Ecosystem

Mon 27, Mar 2017

Demand Elasticity Unlocking $3.4 Billion Capacity Opportunity as 4G Backhaul Reaches Mainstream 

Cambridge, MA – NSR’s Wireless Backhaul via Satellite 11th Edition report, releasing tomorrow, forecasts the global installed base of satellite backhaul sites to surpass 188,000 by 2026 and generate US$3.4 billion in annual satellite capacity revenues. The growth will be driven from 3 main areas, mobile backhaul, trunking and IP content distribution. Mobile backhaul will generate the majority of the growth, driven by the transition to 4G services. After several years of drastic declines, Trunking has stabilized and new demand is being generated at competitive price levels. IP Content Distribution, already witnessing initial deployments, will  potentially generate large opportunities, if the right conditions develop.

“2016 was an inflection year for backhaul. Lower capacity pricing, together with smart ground segment, unlocked tremendous opportunities. Satcom won very large deals last year and more importantly is no longer perceived as a last-resort solution, but rather a key enabler for broadband networks,” states Lluc Palerm, NSR Senior Analyst and report author. New use cases are appearing, which generate demand not only in emerging countries, but also in developed economies. Beyond extending network coverage to remote locations, satellite is now used for network resiliency, traffic offload, network densification, sporadic traffic and first-responder networks.

The ground segment has a key role to play in unlocking this market. Bandwidth efficiency and cheap capacity is not enough, and platforms need to be able to optimize traffic to boost network utilization. Backhaul offers a tremendous opportunity for equipment vendors with $1.2 billion in 2016-2026 cumulative CPE revenues. Mobile Network Operators are also more willing to outsource network management creating opportunities for end-to-end integration of services.

5G is a major step forward in the telecom ecosystem, not only offering faster speeds, but proposing a big change on how networks are conceived. It comes with extreme technology requirements such as ultra-low latency or Gbps throughput that might seem unattainable for satcom.  However, 5G opens extraordinary opportunities for satcom, if technology continues to progress. Ubiquity, resiliency, virtualization or edge capabilities are key attributes offering new opportunities.

About the Report

Wireless Backhaul via Satellite, 11th Edition study is the industry leading analysis and forecast of 3 vital market segments: Mobile Wireless Backhaul, Trunking and IP Content Distribution. The study assesses the installed base of sites in seven different regional markets, investigates trends impacting market growth, forecasts capacity and equipment revenues, and predicts satellite capacity requirements for provisioning each market vertical. Beyond classic C-, Ku- and Ka-band FSS capacity, NSR also leads the industry in forecasting use of High Throughput Satellites (HTS) segmented by band (C-, Ku- & Ka-bands) for GEO-HTS systems and assesses the impact of Non-GEO HTS constellations in the Backhaul markets.  For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com or call NSR at 617-674-7743.

About NSR

NSR is the leading global market research and consulting firm focused on the satellite and space sectors. NSR’s global team, unparalleled coverage and anticipation of trends with a higher degree of confidence and precision than the competition is the cornerstone of all NSR offerings.  First to market coverage and a transparent, dependable approach sets NSR apart as the key provider of critical insight to the satellite and space industries.  Contact us at info@nsr.com to discuss how we can assist your business.

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