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Analyst Corner
End Users’ Eagerness to Adopt Communication Technology Boosts VSAT’s Prospects in the Middle East and Africa Market
With telephony carriers aiming to reach out to the underserved rural and remote areas of the Middle East and Africa (MEA), very small aperture terminal (VSAT) technology has rapidly gained prominence. VSAT has become the technology of choice among satellite solution providers for being the most effective solution for providing connectivity to rural areas, where terrestrial telecommunications infrastructure is inadequate.
New analysis from Frost & Sullivan (www.space&communications.frost.com), Middle East and Africa VSAT Markets, finds that the markets have surpassed the threshold of 60,000 unit sales in 2006 and estimates this to reach 220,000 in 2012 due to the high profile eSchools project from the New Partnership for Development (NEPAD) in Africa, as well as projects in Iraq and South Africa.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Middle East and Africa VSAT markets, then send e-mail to Nimisha Iyer, Corporate Communications, at niyer@frost.com, with your full name, company name, title, telephone number, fax number and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.
"The current state of terrestrial fibre or cable infrastructure helps to position VSATs as a key enabling element in the development of all forms of telecommunications in the MEA," notes Frost & Sullivan Research Analyst Irene Guiamatsia. "Satellite service providers are also encouraged by the enthusiasm of the end users to benefit from applications such as e-learning or simply, telephony."
With an average of 65 per cent of the population living in rural areas, demand far outstrips supply in the MEA region. In fact, potential consumers in rural Africa are ready to invest more than 12 per cent of their earnings on telecommunications, making it the most "eager" market in the world.
"Such overwhelming demand is likely to persuade service providers to battle on despite several impediments such as the impracticable roads that increase the cost and availability of maintenance in rural areas, electricity shortages and paucity in engineering resources and technical expertise in the region," notes Ms. Guiamatsia.
Satellite service providers also have to take stock of the lack of uniform standards in telecommunications regulation, which can hinder both international and local market participants. Excessive licensing fees and customs duties also greatly impede the large-scale roll-out of low-cost consumer-grade VSAT units.
Moreover, they will have to get rid of their high price tags if they expect to cover further ground in the market. The cost conscious customers are likely to compromise on quality of service (QoS) and better performance if it will get them substantially better-priced deals.
VSAT manufacturers are gradually solving this cost issue by innovating technologies to yield cost-effective solutions. Recent technological advances, especially in the domain of access and multiplexing schemes have directly translated into lower equipment and setup costs. Increased flexibility, adaptability and the ability to quickly deploy VSAT networks for various applications in remote and rural areas will make it the preferred satellite solution.
New analysis from Frost & Sullivan (www.space&communications.frost.com), Middle East and Africa VSAT Markets, finds that the markets have surpassed the threshold of 60,000 unit sales in 2006 and estimates this to reach 220,000 in 2012 due to the high profile eSchools project from the New Partnership for Development (NEPAD) in Africa, as well as projects in Iraq and South Africa.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Middle East and Africa VSAT markets, then send e-mail to Nimisha Iyer, Corporate Communications, at niyer@frost.com, with your full name, company name, title, telephone number, fax number and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.
"The current state of terrestrial fibre or cable infrastructure helps to position VSATs as a key enabling element in the development of all forms of telecommunications in the MEA," notes Frost & Sullivan Research Analyst Irene Guiamatsia. "Satellite service providers are also encouraged by the enthusiasm of the end users to benefit from applications such as e-learning or simply, telephony."
With an average of 65 per cent of the population living in rural areas, demand far outstrips supply in the MEA region. In fact, potential consumers in rural Africa are ready to invest more than 12 per cent of their earnings on telecommunications, making it the most "eager" market in the world.
"Such overwhelming demand is likely to persuade service providers to battle on despite several impediments such as the impracticable roads that increase the cost and availability of maintenance in rural areas, electricity shortages and paucity in engineering resources and technical expertise in the region," notes Ms. Guiamatsia.
Satellite service providers also have to take stock of the lack of uniform standards in telecommunications regulation, which can hinder both international and local market participants. Excessive licensing fees and customs duties also greatly impede the large-scale roll-out of low-cost consumer-grade VSAT units.
Moreover, they will have to get rid of their high price tags if they expect to cover further ground in the market. The cost conscious customers are likely to compromise on quality of service (QoS) and better performance if it will get them substantially better-priced deals.
VSAT manufacturers are gradually solving this cost issue by innovating technologies to yield cost-effective solutions. Recent technological advances, especially in the domain of access and multiplexing schemes have directly translated into lower equipment and setup costs. Increased flexibility, adaptability and the ability to quickly deploy VSAT networks for various applications in remote and rural areas will make it the preferred satellite solution.
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