Operators in the geostationary satellite transponders market need to focus on both video and corporate networking applications that accounted for almost 75.0 percent of the total leased transponders in Latin America for 2004. Due to its vast transmission capabilities, satellites are particularly efficient for point-to-multipoint applications such as video services, which are incidentally the largest segment of the transponder leasing market in Latin America. Transponders leased for video applications are likely to account for around 60.0 percent of the total leased transponders during the forecast period 2005 to 2011. In the case of networking applications, demand for satellite transponders is most likely to stem from higher bandwidth requirements in videoconferencing, e-learning, and telemedicine especially from large countries such as Argentina, Brazil, and Mexico.

This Frost & Sullivan research analyzes key trends, drivers, and restraints in the Latin American geostationary satellite transponders market. The study analyzes use of "C" and "Ku" band transponders and compares satellite operators’ fleet capacities and utilization rates. It forecasts transponder supply and demand in Latin America, which assists participants in understanding the potential growth areas and formulating business strategies accordingly.

Vast Geographical Terrain in Latin America to Benefit from Satellite Connectivity

With the varied geographical terrain in Latin America and widely dispersed population in the interiors of Mexico, Brazil, and Argentina the satellite based solutions prove to be far more cost-effective compared to conventional fiber-optic networks. "Moreover, fiber-optic networks are mainly useful for national long distance and important business districts," says the analyst of this research. "There exists a tremendous opportunity for connecting non-business districts and remote locations using satellite bandwidth or a hybrid satellite-terrestrial solution." Latin American governments have also initiated programs to increase connectivity across villages, schools, universities, and colleges through satellite broadband solutions. Such programs are expected to increase the satellite bandwidth consumption in the region.

Operators Need to Promote New and Niche Applications

While satellites can claim to be the "only" connectivity solution, operators need to shift focus to niche applications and markets where satellites do not compete with any other media, in terms of availability and security. Such a strategy will also help operators to supplement their services and compete effectively with terrestrial service providers. "Operators will have to conceive, develop, and promote ideas and applications specific to the satellite industry," explains the analyst. "They need to develop communities and organizations and also fund these new ventures, with the ultimate aim of increasing their satellite bandwidth consumption."

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