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Satellite Sector Benefits from IPTV Growth

NSR released its market research and forecast study entitled "IPTV via Satellite: 2nd Edition." The report provides a concise up-to-date analysis of the satellite IPTV market for both B2B and retail modes, describing the forces shaping the business and presenting forecasts on transponder demand (TPEs) in each region over the next 5 years.

The report concludes that IPTV will produce a variety of satellite sector opportunities for C-band television distribution to telco headends and Ku-band distribution to consumers in some markets.

C-band services are rapidly driving capacity in the United States via Intelsat IPTV and SES IP-Prime respective turnkey offerings targeted at U.S. telcos. Hybrid DTH/broadband services in Europe and retail satellite IPTV plans in Asia point to positive momentum for services delivered via Ku-band capacity as well.

The mounting competitive pressure on telcos to diversify their business and increase ARPU through entertainment allows the satellite sector to contribute through their broadcast advantage to capture part of the growth.

NSR also anticipates new IPTV services opportunities emerging from the fusion of IT and communication elements. Existing satellite IPTV turnkey solutions reduce telco total cost of ownership (TCO) dramatically, but thanks to the IP virtualization advantage, satellite operators and their resellers will have an opportunity to play roles of higher value than in traditional satellite services.

"Telcos are entering television at a time of great disruptions because IPTV is the result of accumulated pressures from Internet/IT technology build-up over the past decade, enabling so much efficiency that results in a paradigm shift." stated Christopher Baugh, President of NSR.

"Satellite-based outsourced services can seize their aggregation advantage to command higher returns per transport bit, by becoming an active part of the move toward open services architectures that empower telcos to differentiate while containing operating costs," stated Baugh.

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