Signals Telecom Consulting published the 3rd edition of its report entitled: "Latin American Market for Satellite Capacity" in January 2010. Statistical information contained in the report includes, among other variables, forecasts on the availability of satellite capacity, growth in service revenue and the development of prices. The report indicates that Brazil accounts for around 50% of the demand for satellite capacity in the region.
"In addition to its large broadcasting industry, there has been phenomenal growth in the number of Pay TV subscribers, boosted by the country’s largest telecoms operators, who have chosen DTH as their mass market option. The Brazilian state is another major source of demand for satellite capacity, mainly as a result of its social connectivity programs and government networks for various purposes. Although the country’s available capacity is close to the limit, Signals considers that adequate capacity will be guaranteed following the announcement of new launches and the repositioning of existing units," declared Carlos Blanco, Market Research Director for Signals Telecom Consulting and author of the report.
The report reveals that in 2009 the Latin American market for satellite capacity recorded revenue of close to US$ 950 million. "Last year the rising trend in the price per MHz continued as a result of the steady increase in demand. According to the analysis made by Signals, the utilization rate in 2009 was close to 82% of available capacity, the highest level recorded in recent times," Blanco continued.
One of the conclusions in the report indicates that the period through to 2014 will continue to be favorable for the satellite sector in Latin America, driven mainly by capacity demand from the video sector: this sector alone could account for over 60% of demand in the medium term. "Fleet announcements in the private sector as well as in relation to the new wave of state projects show that capacity will continue to be added, so that it will be possible to work with a relatively high number of transponders compared with the situation in previous five-year periods. It should nevertheless be noted that occupancy levels in the medium term will remain high –in the order of 80%- if demand continues to rise at current rates. Needless to say, such a situation will enable positive price adjustments, so that the market will be worth close to US$1.32 billion in 2014," Blanco concluded.
In total, the Latin American market for satellite capacity will top US$1.32 billion in revenue in 2014, with CAGR of 6.8% in the 2009 – 2014 period. A strong broadcasting industry, Pay TV growth and demand from the State sector will transform Brazil into the leading market in Latin America, according to the report.
