| GartnerGroup's Dataquest Says Mobile Satellite Services Market to Reach 8 Million Terminals by 2004
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Egham, United Kingdom, December 14, 1999 – With several operators expected to become operational during the next two to three years, the market for satellite voice services is forecast to grow from an estimated installed base of 211,212 terminals at the end of 1999 to 8.32 million terminals by 2004, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT). However, market growth is expected to be relatively modest during 2000 and 2001 because of the inevitable delays in service roll-out by the new players.
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"The biggest challenge facing these new operators and their service providers will be marketing these services, and that will cost money," said Gareth Owen, industry analyst for Dataquest's Mobile Communications Worldwide program. "Right now, these players need each other - the more players, the greater the marketing impact. And prices, particularly for handsets, will come down quickly with competition. However, in three or four years, it will be a different story."
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With Iridium's failure to cultivate the business market, all focus is now on the vertical markets. All operators are developing a range of products specifically tailored for various niche applications. In particular, Dataquest sees the maritime sector-fishing vessels, the small boat market and cruise ships as one of the most promising niche applications and expects this market segment to account for more than 400,000 terminals by 2004.
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Dataquest believes the potential for a sizeable business roaming market still exists in some parts of the world. The key to unlocking this market will be attractively priced and compact handsets marketed as value-added options to existing cellular service plans.
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"Some operators will have sub-200-gram handsets available in late 2000 or early 2001," said Mr. Owen. "At the moment, it is the geo-mobile operators such as ACeS and Thuraya, with their cost-effective GSM (Global System for Mobile Communications)-based platforms and small handsets, that seem best placed to exploit this market. However, the catalyst that might really kick-start this market in the next two to three years could be the ability to offer high data rates (up to 64Kbps) to smartphones or small portable type terminals."
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Additional information on this market is available in the Dataquest Market Trends report, Global Mobile Satellite Markets. This report examines the markets for mobile satellite services in each region and gives in-depth analysis on the major players in the market.
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This report is produced for Dataquest's Mobile Communications Worldwide program. This program provides detailed information on all major mobile sectors, providing reports and inquiry garnered from Dataquest's strong presence in each region. Additional information on this program is available on Dataquest's Web site at http://www.dataquest.com/dq/static/offer/programs/mobc-ww.html.
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To purchase the report or subscribe to the program, please call 800-419-DATA or 408-468-8009. More information about Dataquest's programs, descriptions of recent research reports and full text of press releases can be found on the Internet at http://www.dataquest.com.
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GartnerGroup's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.
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GartnerGroup, the world's premier business technology advisor, was founded in 1979 and is headquartered in Stamford, Connecticut. GartnerGroup provides unrivaled though leadership for more than 9,600 client organizations worldwide. It achieved 1999 revenue of $734 million, and has 80 locations worldwide. GartnerGroup's 3,400 associates, including 1,200 research analysts and consultants, help clients achieve their business objectives through the intelligent and efficient use of technology. For more information about GartnerGroup's industry-leading research capabilities, services and events visit us on the Web at www.gartner.com.
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