NSR Press Releases

NSR Report: Smallcells a New Key to Unlocking $39 Billion in Satellite Backhaul Revenue

Smallcells Complement Macrocell Deployments as 5G Makes Satcom Integrable with Terrestrial Networks 

 

Cambridge, MA – February 25, 2020 – NSR’s Wireless Backhaul via Satellite, 14th Edition report, released today, forecasts $39 billion in 2019-2029 cumulative capacity revenues for Satellite Backhaul. With backhaul networks rapidly transitioning to 4G and the installed base continuously expanding, Mobile Backhaul via Satellite offers sizable opportunities in all regions. Smallcells will play an increasingly important role in this growth, as lower costs expand the addressable market to areas previously uncovered due to industry cost metrics.

“With Smallcells, it is now possible to set up a Base Station with CAPEX under $20K. This translates into extraordinary new opportunities for satcom as MNOs can expand coverage into the most ultra-rural communities. Combining lower capacity prices, enhanced ground segment, and Smallcells, MNOs can now find positive returns even in these challenging deployments,” states Lluc Palerm, NSR Senior Analyst and report author. “Thousands of Smallcells are being deployed in Latin America and Africa alone.”

The multiple M&As in the VSAT platform space are particularly relevant for the Backhaul market. The combination of Comtech/Gilat/UHP will create a very dominant actor in this market while iDirect/Newtec clearly sees Backhaul and 5G one of their primary growth engines. Additionally, as MNOs are increasingly willing to outsource network management, multiple groups are moving into offering end-to-end services, including new entrants like Towercos.

Demand for backhauling 5G networks will be modest in the first half of the decade. However, 5G is much more than just the next radio access technology; it represents a completely new way of conceiving networks and will have a transformative impact on the entire satellite value chain.

Outside of Backhaul, Trunking is also turning around after a tough period with sky-high bandwidth requirements triggering upgrades on the ground segment and a recovery in capacity revenues. Multiple tests are underway for Hybrid networks, but concrete opportunities are still scarce. The period 2020-21 will be key in seeing whether this use case can really take off.

About the Report

NSR’s Wireless Backhaul via Satellite, 14th Edition is an industry leading analysis and forecast of 3 key market segments: Mobile Wireless Backhaul, Trunking and Hybrid Networks. New in this edition is the assessment of Smallcells and the expansion of the addressable market together with the analysis of the recent M&A moves in the VSAT vendor segment. 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 high 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.

Companies and Organizations Mentioned in the Report

ABS, Africa Mobile Networks, Altice, Amazon, Andesat, Antrix/ISRO, APT Satellite, ArabSat, AsiaSat, Avanti Communications, Axess, Broadpeak, CETel, China Satcom, Claro, Comtech, EE, Digicel, Entel, Ericsson, Eutelsat, Facebook, Gazprom Space Systems, Gilat, Globe Telecom, Globecomm, Google, Hispasat, Huawei, Hughes, iDirect, Intelsat, IP.ACCESS, Kacific, KDDI, Loon, MEASAT,  MTN, NBN, Neotion, Newtec, Nokia, NuRAN, O3b, OneWeb, Optus, Orange, Parallel Wireless, Quadrille, Reliance Jio, Rostelcom, RSCC, SES, SKY Perfect JSAT, Softbank, Spacecom, Spacebridge, SpaceX, Speedcast, Sprint, Star One, Talia, Telefonica, Telenor, Telesat, Thaicom, TIM, T-Mobile, UHP, ViaSat, Vodacom, Vodafone, YahSat, and ZTE.

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