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Game Changers: HTS and O3b to Disrupt Wireless Backhaul via Satellite Market

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There will be a long term shift in satellite backhaul services from legacy SCPC and TDMA systems to High Throughput Satellites (HTS) and O3b, reports NSR. The market shift brings threats, as well as opportunities, for market players involved in space segment capacity and end to end services along with companies in the equipment segment.

The global satellite backhaul market is expected to reach $2.3 billion in 2021, growing almost three-fold from today's $800 million annual revenue base.

In the very short term, HTS and O3b will significantly change the wireless backhaul industry. "OPEX considerations, which have hampered market adoption of satellite solutions due to high bandwidth costs, will see a big drop. This, along with the needs of the mobile workforce, will lead to higher penetration levels in key markets for both developing and developed countries," according to the study's author Jose Del Rosario, Senior Analyst for NSR.

New programs will lead to a re-examination and an eventual swap-out of solutions currently being deployed to more cost-efficient platforms.

"Apart from HTS and O3b on the space segment side, more affordable and modestly-sized picocells that lower CAPEX lead to higher adoption in terms of deployments on ground towers, various types of maritime vessels and aboard commercial aircraft," Del Rosario notes.

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Tags: satellite  backhaul