NSR has often spoken of the "indi"osyncracies of satellite capacity supply in the Indian market – be it the role of ISRO/Antrix as a gatekeeper, glass ceilings on capacity prices or the preferential allotment to the domestic INSAT fleet. No efforts were spared to keep the country’s six Pay TV DTH operators on Indian transponders. But a combination of power anomalies, increasing backlog, spectrum controversies and (more importantly) unmet demand have allowed “foreign” transponders to trickle into the country’s DTH market – one 3-5 year contract at a time.

The U.S. Government’s Energy Information Agency recently published that third quarter 2010 capital expenditures on production activities at the top 13 O&G companies are at a five-year high of $29.1B, exceeding the previous high in Q3 2008 of $28.2B. Driven in part by increases in drilling activities after the Gulf of Mexico Moratorium, capital expenditures are up 48% from third-quarter averages from 2005 – 2009, indicating a general upward trend in overall exploration and production (E&P) activities.

The 30th anniversary edition of the Satellite show held in Washington, D.C. from March 14-17 was like a big coming out party for the industry. Having just survived one of the worst global recessions relatively unscathed,  the mood at the show was decidedly bullish.   Senior industry executives speaking at the conference were almost unanimously positive on the industry’s position yet they also recognize that there are still many challenges ahead. 

The Brazilian city of Rio de Janeiro will host the GVF Oil & Gas Communications Brazil 2011: The Digital Oilfield & Gasfield Imperative, Onshore, Offshore, Deepwater conference over the period 19th & 20th April, which is being held in association with Schlumberger, Intelsat, Gilat Satellite Networks, Hughes, Telespazio, and C-Com Satellite Systems.

The demand for mobile backhaul is growing at an unprecedented rate. Smart phones on ave-rage consume five times as much bandwidth as a regular cell phone and the number of smart phones is projected to increase by 300% to  two billion units in 2015.  This has prompted the International Telecommunications Union (ITU) to call for an increase in both fiber and spectrum in order to avoid network bottlenecks.  In July 2010 NSR projected that the satellite portion of this market should be worth just under  US$ 600 million by 2015. 

Washington, D.C., February 17, 2011--The Department of Commerce's National Telecommunications and Information Administration (NTIA) today unveiled the National Broadband Map -- the first public, searchable nationwide map of broadband Internet availability -- and the results of a new nationwide survey on broadband adoption.  The data will support efforts to expand broadband access and adoption in communities at risk of being left behind in the 21st century economy and help businesses and consumers seeking information on their high-speed Internet options.

“A state-of-the-art communications infrastructure is essential to America’s competitiveness in the global digital economy,” said Acting Commerce Deputy Secretary Rebecca Blank.

VSAT technology today offers a solid platform for medium to high bandwidth applications in the enterprise domain.  However many potential users harbor concerns the medium might be too costly and unreliable.  How these concerns are addressed varies greatly based on the application and location.  The satellite industry is dropping its old boiler plate about ease of use and speed to deploy and moving towards being something that can handle applications which require more bandwidth with a truly independent and private network.

Location, Location, Location

The last decade has been a roller coaster ride in the Latin American FSS market with numerous peaks and valleys in both supply and demand. The decade started out with a mass of satellite launches that drove up supply, but transponder demand lagged leading to a buyer’s market with very low pricing. Then starting in about 2008, demand for capacity, most especially Ku-band transponders, grew very rapidly driven by DTH, video distribution and VSAT networking services for a plethora of rural connectivity, e-governance and USO projects.

There has been solid growth in the Earth Observation (EO) market in the past few years due to a strengthening of demand for civil government and military EO satellites and associated data. However, this reliance on government and military organizations distorts true market economics, as only a few large users such as the National Geospatial Intelligence Agency (NGA) provide the majority of revenues for U.S.-based operators according to NSR.

In January U.S. Defense Secretary Robert Gates announced plans to cut $78 billion in defense spending over five years, including a reduction of up to 47,000 troops. These cuts are in addition to last year’s $100 billion cost-savings drive in efforts to eliminate waste, cut poorly performing weapons programs and redirect funds to other priorities. These announcements certainly appear ominous for industries such as commercial satcoms, which has seen increasing demand since 2001.