New Solutions, GSM Driving Satellite Growth"
Increased pressure on GSM service providers to extend coverage and reduce infrastructure costs is opening up new opportunities for the Latin American satellite industry, according to telecom solutions and platform company executives.
New solutions available to service providers can bring as much as a 50% cut in costs which, combined with government and other funding for boosting mobile penetration, help industry growth, US VoIP solutions company Verso special accounts VP Greg Kustudia told BNamericas.
Satellite networks also allow new companies to compete in markets where an incumbent carrier controls the fiber infrastructure, as well as provide back-ups for disaster coverage, Kustudia said.
Verso reported global revenues of US$32.9mn in 2005, of which roughly 75% came from satellite systems, Kustudia said.
Kustudia said he expected revenue growth in Latin America to reach 25-30% year-on-year, without providing specific figures for the region. The company has seen a spread of new contracts in 2006 throughout the Latin American region with governments and private service providers.
"From the government standpoint there are a lot of projects that continue to increase every year, and from the wireless standpoint we are on the tip of the iceberg," Kustudia added.
Israeli satellite platform supplier Shiron Satellite Communications has also registered new sales in the region, billing US$8.5mn for the second quarter of 2006.
Shiron has seen several new projects for their platforms with mobile operators and internet service providers. The company has closed deals with several major operators, including Entel's Bolivian unit, Venezuela's state run CVG telecom and Mexican Telmex's Chilean unit.
The company expects to bill at least US$3.2mn more in Latin America by year-end, to represent 80% of its global sales forecast, Shiron sales VP Camilo Balzan told BNamericas.
Balzan also sees high broadband costs as being a driving factor for service providers to try to lower infrastructure costs. One of the ways in which to do this is to use satellite backhaul which increases bandwidth efficiency, he said.
Recent analysis by US market research company Frost & Sullivan also forecasts growth in the satellite market, with an expected market value of US$1bn by 2012. Frost sees the market being driven by increased demand for video and networking applications, including services such as video distribution, digital TV solutions and VoIP.
BNAmericas.com"
Posted to the site on 26th September 2006
