Satellite Communications & Broadcasting in Latin America is a comprehensive assessment of strategic trends in one of the most rapidly growing satellite markets.
Highlights of the Report
Total satellite capacity usage increased at an 8% CAGR over 2009-2014, driven by growing requirements for satellite pay-TV (+1,600 channels), VSAT services (+50,000 VSATs), trunking and backhaul. Euroconsult projects total capacity leased to grow at a 10% CAGR over the next decade, translating to a total of over 330 Gbps of traffic flowing over satellite by 2024.
Following strong growth in demand, operators have invested heavily in expansion satellites causing total regular capacity supply in Latin America to double by 2017 (from 2010 levels), while HTS capacity will increase eightfold to over 370 Gbps by 2017.
As supply additions are projected to outpace growth in demand, the average regular capacity fill rate should decrease from 80% in 2014 to 70% in 2017. The trend of falling fill rates is most profound in Ku-band, where utilization levels are dropping from 86% in 2010 to an expected 64% by 2017, causing concerns for oversupply.
Although demand is relatively equally distributed across the three sub-regions (Central America, Mexico, Caribbean; Brazil; Rest of South America), the two largest countries, Mexico and Brazil, are projected to represent more than half of total capacity demand by 2024. In the short to medium term, market growth will be hampered by the economic slowdown that should limit the progress of the middle class and may potentially cause instability or delays to government programs and funding. Furthermore, the analog switch-off process will somewhat temper the capacity additions from 2018 until 2022.