Market and competitive factors for Ka-band multimedia satellite systems

The satellite industry has a unique opportunity in the emerging market for high-bandwidth, on-demand interactive multimedia services. In this paper we examine the market and competitive factors which will influence the success of the next generation of satellite systems proposed to address this market. To provide context, the significant changes the telecommunications environment is undergoing are reviewed. The key traffic characteristics of multimedia traffic are described and quantified. These characteristics often make the services well suited to carriage by satellite systems. Further, these characteristics drive important satellite system design decisions. Market driven factors which are critical to the success of these systems are identified. Satellite operators will not be the dominant multimedia service provider. They will depend on the development of the services by the terrestrial providers. Copper, coax and wireless-based terrestrial alternatives are compared to satellite. The role of satellite in this mixed satellite and terrestrial environment is discussed. A crucial determinant of success will be the terminal and services cost to the end-customer. We examine both terminal cost trends and the usage pricing assumptions of the proponents to assess their fit to the competitive market and the feasibility of achieving the required pricing levels