Broadband satellite systems such as Teledesic, Astrolink, Spaceway and Celestri will provide a global broadband infrastructure for IP services, according to a new report released by Pioneer Consulting titled "Satellite Data Networks: The Internet's Next Frontier."

Using newly available frequencies in the Ka-Band, these systems will provide broadband services in an efficient manner to all regions of the globe. The Ka-band has created the opportunity for satellites offering multimedia services to small antennas, eliminating the bottlenecks associated with telecommunications networks "last mile."

"By the year 2000 at least three major Ka-Band satellite systems

will be in operation, offering IP services to businesses and consumers

on a uniform basis throughout the globe. Applications such as

high-speed Internet access, distance learning, telemedicine, and

virtual private networking will be facilitated at megabit speeds at a

cost that should be quite competitive with existing broadband services

in the U.S., and very competitive with those in Europe and Asia," said

Scott Clavenna, the report's author. "The nearly universal adoption of

IP as the foundation of corporate internetworking has created an

opportunity for satellite system developers to offer regional or

global broadband IP coverage, allowing users to create highly

versatile and flexible networks with one point of billing and

management."

As the Internet expands globally from its present U.S.-centrism,

satellites will be the only telecommunications network infrastructure

to economically reach emerging markets, particularly those without

access to submarine fiber optic cable systems. For developed markets,

broadband satellites offer a complementary access option to existing

fiber optic and high-speed copper solutions, bringing broadband

capabilities to the mass market in the same way DBS has delivered

digital television. Because broadband satellites serve lucrative

business customers, this market has a potential to far outgrow the

DBS/Direct-to-Home market. By the year 2005, revenues from broadband

satellite services will reach $29.25 billion globally.

Year Broadband Data Revenue

($US Billions)

1998 0.05

1999 0.10

2000 0.30

2001 1.00

2002 3.70

2003 11.47

2004 19.50

2005 29.25