WiMAX to Present More Opportunities than Threats for Satellite Communications

NSR today released its newest market intelligence and forecast report: WiMAX- Opportunity or Threat for Satellite Communications? The report examines WiMAX in the overall telecom context to provide a concise analysis of current and future opportunities and threats for satellite communications. The report includes forecasts for WiMAX-generated transponder demand (TPEs), backhaul sites and satellite service revenues in each region over the next 5 years.

The report concludes that satellite-WiMAX "inter-working" will produce a variety of distinct opportunities, highly dependant on the frequency band in use and regional competitive considerations. Opportunities range from C-band and Ku-band satellite backhaul in developing regions and remote areas, to DBS-WiMAX triple play retail bundles in mature satellite TV markets, to lower CAPEX and installation cost per-broadband user in rural areas via tighter satellite-WiMAX integration at the VSAT, to a satellite derivative of mobile WiMAX potentially applied to hybrid satellite-wireless handsets utilizing the valuable Ancillary Terrestrial Component (ATC) spectrum.

WiMAX momentum and high-growth expectations will prompt satellite players to leverage the distance indifference and quick deployment characteristics of satellite services to opportunistically address supply-demand disruptions in backhaul bandwidth requirements. Two-tier satellite-WiMAX backhaul also presents leapfrog advantages in developing regions and remote areas that lack terrestrial broadband infrastructure.

While NSR expects that WiMAX and satellite communities will be able to achieve overall joint gains, the high-power and mobility elements of WiMAX potentially deployed in a ubiquitous matter using the 3.5 GHz spectrum bring interference challenges to satellite extended C-band and standard C-band as well. This issue must not be understated, as wide-scale interference between WiMAX and C-band will greatly affect C-band users and emerging WiMAX services. Future ITU meetings will provide more guidance on this issue, but NSR concludes the path forward to a “win-win” outcome for both satellite and WiMAX players is not yet entirely clear.

NSR also believes the WiMAX play and the role for satellites will be largely shaped by heated triple play and quad-play battles that aim at horizontally integrating service offerings. "WiMAX is a newcomer to the triple-play game, and cross-platform complementary offerings such as DBS-WiMAX bundles will continue taking place" stated Christopher Baugh, President of NSR. "These deals will facilitate the introduction of triple and quad-play services in an increasingly technology-agnostic way," stated Baugh.

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