NSR, an international market research and consulting firm, in its recent report named, 'Indian Satellite Markets,' predicts that India to be a multi-billion dollar market for satellite and related services by 2013.
NSR, believes that there is a lot of untapped potential in the Indian market. Explosive growth, mainly driven by video, direct-to-home (DTH) and VSAT services, has been predicted for the satellite market in India. India's premier space agency, Indian Space Research Organization (ISRO), has not been able to meet the increasing domestic demand. Yet, international operators who compete in Indian market, have to contend with preferential treatment to the domestic fleet, regulated pricing and short-term contracts from service providers.
NSR expects the overall demand for Ku-band and C-band bandwidth in India to grow at the rate of about 1.5 to 2 percent to reach a level that will not be met by domestic supply alone, presenting windows of opportunity for both industry leaders and emerging operators to satisfy the demand for services like DTH, VSAT and rural connectivity across the country.
Looking at the market trends, more than 300 channels available with a subscriber base of 7 million, video broadcasting continues to remain the major contributor to demand for C-band capacity. DTH in the Ku-band has been the most promising market for regional satellite operators. The projected surge in demand for digital television will also result in spill over into C-band with Headend-in-the-Sky platforms for digital cable distribution, NSR said.
With majority of deployments from banking and financial services vertical,VSAT is highly prospective in India. It is poised to grow to more than 175,000 sites by 2013. Emerging applications such as rural connectivity for e-governance, digital cinema and cellular backhaul also find great growth opportunity to reach the scale of their early-adoptive counterparts over a five-year period.
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