Abstract
Description
Advanced satellite channel modulation and video compression technologies offer a quantum leap in efficiency that fuels structural changes in satellite-delivered entertainment and connectivity across a wide range of scenarios. Applications that benefit from advanced modulation and/or video compression range from satellite HDTV distribution and contribution, to professional applications, to satellite broadband, to the emergence of new "HITS" platforms, content "push" and satellite backhaul.

DVB-S2 modulation and MPEG4 AVC (H.264) video compression have been widely accepted as the prevalent standardized means to optimize satellite links in video broadcast and point-to-multipoint networks. However, despite wide industry acceptance and validated bandwidth savings, questions remain as to what speed will these technologies be deployed, where and how for the relevant scenarios. Depending on application-specific considerations, including installed base of legacy components, network scale and new competing delivery models, the business case of deploying MPEG4 and/or DVB-S2 systems against matured MPEG2 and/or DVB-S can be challenged. Factors affecting migration include higher costs of advanced set top boxes outweighing space segment savings, region-specific satellite footprint characteristics preventing efficiencies from features like advanced code modulation (ACM) from realizing their full potential, local regulatory and completive issues discouraging the emergence of new cable/telco distribution platforms, and collective switching costs deterring or discouraging system migration.

The drivers and specific contextual considerations for each of the sub-sectors where advanced coding and modulation apply imply varying degrees of adoption speed and tipping points for hardware suppliers, operators and service providers to take into account when planning deployments in both greenfield and replacement scenarios. HDTV is clearly a strong driver toward the adoption of both DVB-S2 and MPEG4 in some key markets, and the leadership position that companies like DirecTV, BSkyB and EchoStar have taken on HDTV as an ARPU enhancer against cable VOD has helped accelerate a virtuous cycle in hardware development that stretches from semiconductor companies to equipment vendors.

Future proofing considerations of these technologies also become vital in the context of fast changing technology and increased diversity of network environments with new ways to access media. This NSR report analyzes the characteristics of each application, regional market considerations and trends to identify greenfield deployments and migration schedules for the implementation of DVB-S2 and MPEG4 satellite-based networks and systems