By Koen Willems, Strategic Marketing Director;
In the previous article (Striking Results 1 of 3) on the S2 Extensions survey we had a close look at two striking results. Firstly we noted that 98% out of the 700 satellite experts considered standards in the satcom industry to be important to very important. The second result showed that 51% of the satellite market would switch to the successor of the DVB-S2 standard within one year after its launch.
Today we will dig a bit deeper in two related topics: what level of efficiency gain is required for the industry to switch to the new standard and what kind of business will be generated out of the extra bandwidth gain:
Key Findings 3: Required Efficiency Level to Switch to New Standard
Companies inside the satellite communications industry will not switch to a new standard just for the sake of it. There is a definite need for business drivers and opportunities to generate extra revenues or increasing profitability.
62% of the respondents across different segment and regions will transfer their operations to the upcoming DVB standard if the combination of technologies would allow them to win 15 to 20% efficiency. We have some exciting news for the industry:
S2 Extensions increases efficiency rates up to 37% for applications that require high throughput demands over satellite for professional use and in applications that suffer for bandwidth or need better margins to remain profitable.
Direct-to-Home providers can achieve up to 20% extra bandwidth for their TV and radio distribution.
The spectral efficiency improvements also apply to operations that have lower throughput demands with efficiency gains depending on what MODCOD will be implemented.
Key Findings 4: What Would Your Company Do with the Extra Bandwidth?
The majority satellite experts (40%) will use the extra-obtained bandwidth to increase their throughput. A detailed look into the different segments however brings a more diverse story. Here the answers are closely related to the specific applications of the respondent. Broadcasters mainly prefer to add more TV and Radio channels inside their extra bandwidth. Satellite operators and service providers on the other hand see the opportunity to grow their number of services and enlarge their customer base.
Key Finding 5: The Quest for Improved Satellite Efficiency and Beyond
During the survey we threw in an extra question to poll the satellite experts on how long the race for spectral efficiency would still continue. Almost half of the survey answers pointed in the direction that the quest for efficiency will last as long as the satellite industry exists. Which is a comforting thought for the satcom technology providers amongst us. A quarter of the experts predict the efficiency race to end as soon as no decent Return-on-Investment can be achieved.
Conclusions: What did the survey learn us today?
A majority in the satcom community will switch to the new DVB standard as long as it achieves up to 15 or 20% efficiency gain. The obtained bandwidth will be used to generate extra revenue by adding throughput, services or TV channels depending on the segment of interest.
Outlook: Striking Results (3 of 3)
In the "Striking Results (3 of 3)" we will tap into the concerns that go along with the launch of the new DVB standard and already provide some answers on some common misconceptions.
Strategic Marketing Director
P.S.: Continue reading the 3rd article: Striking Results (3 of 3)