MUMBAI: Frost & Sullivan has released a forward-looking white paper that examines broadband requirements and coverage in the US. This study describes the key role of satellite in providing high-speed connectivity in a manner that is cost-effective for service providers and end users.

The study noted that the evolution of broadband applications would require that virtually all US business sites be enabled with a common level of data communication in order to maintain productivity. As broadband applications mature, sites that are not sufficiently connected will suffer disadvantages akin to the much-discussed digital divide, being unable to participate on an equal basis. A considerable percentage of businesses will not be adequately covered by terrestrial broadband.

While it is generally assumed that 80 per cent of businesses can get data access at speeds faster than dial-up, in actuality, more than 40 per cent of business sites in the US cannot be economically addressed by terrestrial business-grade broadband (defined as 512 kbps or better). The study is called Broadband and the Role of Satellite Services.

It has attributed the supply gap to several factors. Firstly cable-based Internet is not deployed in business districts DSL performance is limited by distance and contention The high cost and unavailability of dedicated lines preclude market participation.

The study explains, "A lack of economical access to wired broadband resources at a significant number of facilities will pose a critical hindrance to business operations. Satellite will be essential to enable comprehensive broadband services with the performance required to support the mission-critical applications needed by corporate, small and medium enterprises and single office, home office markets. Next generation satellite platforms will service both competitive and underserved markets by enabling channels to distribute services that are transparent to the end user."