According to a report by PriceWaterhouseCoopers
(PWC), the market for satellite broadband equipment
in India is expected to grow five times to about 110,000
units over the next five years. The growth will be driven
by new applications like distance education, Internet,
rural connectivity, banking and finance, and gaming.
The findings of the report on the VSAT industry, conducted
for the financial year 2001-02, shows that Hughes was
the leading service provider in India with 35 percent
As per the report, over the
last year, the industry has benefited greatly from aspects
like increased adoption of IT by non-IT 'old economy'
companies, favorable regulations, and overall macro-economic
business confidence. The report also says that satellite
communications will be the solution for the last mile
access problem in a country like India.
Terrestrial connections in
our country are either unavailable or unreliable, whereas
satellites provide ubiquitous and reliable coverage.
The technology has really matured over the last two
years with the provisioning of more and higher powered
satellites over India. This increases the bandwidth
availability, which leads to lower bandwidth costs.
Regulatory reforms, which allow
smaller customer terminals, higher bandwidth transmission,
and use of foreign satellites for uplinking, have made
the technology market-friendly.
According to the report, the
industry continues to record the highest growth rate
in any segment of the Indian IT industry. Service and
survivability are expected to be the key drivers for
customers to opt for preferred vendors and service providers.