July 15, 2008
Chinese Satellite Market to Generate 5.3% Rate of Growth Despite Regulatory and Business Hurdles
NSR today released its newest market survey and forecast report: "China Satellite Markets: Assessment of Commercial Satellite Transponder Demand in China, Hong Kong and Macau." This study offers the most in-depth and detailed assessment of commercial C- and Ku-band transponder demand in China available to the industry and drills down into the details of the major market and application trends in the region.
The report outlines the many regulatory and market hurdles facing the mainland China market and provides a segmentation of capacity demand between that provisioned by China's domestic satellite operator and foreign satellite operators serving the country. Further, the inclusion of the Hong Kong and Macau satellite capacity market is a critical facet to the understanding of the overall mainland China assessment because these markets cannot be treated in exclusion of one another. "The quantification of overspill of television broadcasting signals nominally meant for the Hong Kong, Macau or greater Asian market is critical to piecing together the mainland China market," noted Patrick French, Senior Analyst for NSR and author of the report. "Just one of the critical drivers for the market is television broadcasters intentionally targeting the enormous illegal satellite TV market in China."
Other key developments in China have been the consolidation of its domestic satellites under one operator, China DBSAT, and the soon to be launched national DTH service for China. "China is on the verge of finally initiating a brand new industry, legal DTH satellite TV services, in the coming months," said French. "As long awaited as this has been, there still remain a number of key hurdles to get the ball rolling, not the least of which being the still pending modification of Decree No. 129 to allow Chinese nationals the right to purchase, install and receive television services on a satellite dish." NSR projects that the development of the Chinese DTH market will follow its own unique path, different than has been seen to date in Western countries or parallel markets like India, and should conservatively number nearly 3 million subscribers as of 2013.
"There is no doubt that with its enormous population and ethnic diversity, skyrocketing cell phone and pay-television subscribership, and proactive government efforts to bridge the digital divide in the country, China could offer the most potential for new satellite transponder demand in all of Asia," stated French. "Yet, NSR's assessment is that the challenges of turning this potential into a reality that shows up on the bottom lines of the region's satellite operators are very substantial, and the actual rate of growth projected for the Chinese market, while respectable, certainly falls short of what it could be."
About The Report
"China Satellite Markets: Assessment of Commercial Satellite Transponder Demand in China, Hong Kong and Macau" is a multi-client report now available from NSR. The report examines demand trends for video distribution, Direct-To-Home, video contribution & occasional use television, telephony & carrier services, broadband & narrowband VSAT networking, and other services. For additional information on this report, including a full table of contents and list of exhibits, please visit www.nsr.com or call NSR at 617-576-5771.
NSR is an international market research and consulting firm specializing in satellite and wireless technology and applications. NSR primary areas of expertise include satellite technology, IP applications, wireless convergence and broadcast services. With extensive expertise in all regions and a number of broadband sectors, NSR is a leading provider of in-depth market insight and analyses.