Competing Modem Technologies are not Slowing the Growth of Broadband Satellite, according to Freesky Research

ARLINGTON, Va, June 5, 2007 – DVB-RCS, IPoS, and DOCSIS-for-Satellite continue to advance with little evidence that one will emerge as the dominant satellite modem technology. But the potential cost reductions of a single standard are far less important to the industry than the double digit price premium it continues to earn by remaining focused on underserved communities, according to a report released today by Freesky Research.

“Broadband satellite consumers generate nearly twice as much access revenue per month as Fixed WiMax subscribers, largely because they do not have any other alternatives to dial,” according to David Gross, author of the report. “The typical WiMax subscriber lives in a census tract with over 2,100 people per square mile, or over seven times the density of a typical broadband satellite subscriber. By avoiding dense suburbs, broadband satellite providers earn over $20 per month more than Fixed WiMax providers, and therefore have greater ability to subsidize hardware costs, regardless of what modulation technology they use.”
The report, “Satellite Modem Showdown” is part of Freesky Research’s Routers on Rockets subscription service. In addition to addressable market data on broadband satellite subscribers by state, it looks at the break-even population density between terrestrial wireless and satellite, as well as the commonalities among the three modem technologies. The report is available for purchase at the Freesky Research Store, located at http://shop.freeskyresearch.com.

About Freesky Research
Based in the Washington, DC area, Freesky Research is a market analysis firm covering IP-over-Satellite equipment and services. The firm publishes full-length reports on this segment of the telecommunications industry, as well as monthly updates through its “Routers on Rockets” subscription service.

Contact Information

Natalie Robb

Managing Director

Freesky Research

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