Cellular, PCS Popularity Poses New Challenges for MSS Operators
Cellular systems currently reach roughly 30% of the world's landmass, providing service to 285 million people across the globe. According to the latest report from The Strategis Group, more than 700 million people should have cellular service by 2003, placing mobile satellite system (MSS) operators in the hot seat.
The majority of populations who can afford cellular are presently covered by terrestrial wireless systems, and coverage is expected to become more extensive in the years ahead. The challenge looming over mobile satellite MSS will be to target those markets not served by cellular systems, and to structure the pricing of MSS services and handsets so that global roamers will be able to justify using mobile satellite services.
Several important potential markets will emerge for global MSS operators. Subscribers in remote rural areas lacking adequate communications infrastructure may account for over one-half of the total MSS subscriber base of 17.6 million.
While MSS operators place their initial focus on mobile population segments not covered by terrestrial cellular/PCS networks, virtually all-mobile satellite operators plan to offer fixed satellite service over their networks. It will be offered either directly to an end-user's home or indirectly, such as through a rural payphone concept. The Strategis Group believes that rural fixed users of MSS will initially comprise a small portion of total MSS users but will show significant growth rates over the forecast period, particularly in rural and remote areas that are more cost-effectively served by satellite.
The Asia-Pacific region is projected to have the largest subscriber base: more than one-third of the world's total. At the country level, China, Brazil, the US, and Russia will serve as the industry's largest markets within the forecast period.
The two-part study titled World Mobile Satellite Markets: 1999-2007 evaluates market potential, competition, and regulation across all regions of the world. The report can be obtained by contacting The Strategis Group at (202) 530-7500.