by Lou Zacharilla, Director of Development Society of Satellite Professionals International

As we head towards the end of 2008, leadership, change and the future are the three most prominent words in speeches  given in the world of politics. Both Senators Barack Obama and John McCain in their quest to be the future leader of the United States have campaigned hard on a theme of “change,” (although their definition “change” seems to change with each day’s headline!)  Theirs follows last May’s election in France, where  President Sarkozy  was swept into power on the winds of change.  In Russia and Latin America new leaders, verbally dedicated to the changes needed to create a better world, have been installed.  Sit quietly for a moment and you will no doubt hear the sighing of cynics, who maintain that in politics plus ca change, plus c’est la meme chose.   Perhaps in politics this will again be proven.  However, there is one business where change is taking place quietly and with results.

With many industries around the world in the doldrums due to the current economic crisis, NSR's latest multi-client market research report released December 3rd, 2008 entitled the Global Assessment of Satellite Demand, 5th Edition, projects that the commercial satellite transponder leasing market should emerge relatively unscathed.

One of the industry’s  little secrets is actually a major trade show that attracts almost three times the number of attendees as the annual Satellite show in Washington, D.C.  The Broadcast, Cable and Satellite Eurasia  Expo and Conference held annually in November in Istanbul, Turkey attracted over 14,000 attendees in 2007 and 511 exhibiting companies from 44 countries. The exhibition and conference’s main draw is the emerging market of over 500 million people in the Eurasian region where Turkey is a major center.  

With the global financial downturn, satellite companies are always looking for new and emerging markets to sell their products and services.  But with the increasingly global nature of the world’s economies, there are fewer markets left to explore.

A new generation of satellites, and spectrum assigned to mobile satellite services, will play a prominent role in the next major development in television and radio broadcasting.

·         Satellites will enable relatively rapid roll-outs across major regions of the world and spectrum assigned to mobile satellite services holds the key to unlocking this potentially massive market.

·         A combination of satellite and terrestrial transmission will deliver the next generation of television, radio and associated multimedia services to mobile and in-vehicle receivers.

by Robert Bell, Executive Director, World Teleport Association

By “favorite,” I mean “least favorite,” the way the Millennial generation calls something “bad” when they really mean “good.”  My favorite recession ran from 1989 to 1991.  Fairly mild in most of the United States, it was devastating in the New York metropolitan area where I live.  It was…well, it was sufficiently interesting that I don’t really want to talk about it after all.

The Fixed Satellite Service (FSS) satellite operator business is the most established of the satellite industry, with leaders like Intelsat and SES representing many billions of dollars of investment and revenue. In the past, these companies and their predecessors like Hughes Communications Galaxy and RCA American Communications exclusively relied on investor risk capital and internally ground funds. What has changed to make these companies behave more like debt-leveraged industries like wireless/cellular telephone and airlines?

How We Got Here

IPTV continues to offer a mix of opportunities and challenges. As telecoms sprint to become video network operators, broadcast, media, and satellite companies everywhere are placing their bets on what’s around the corner.

In the cable sector, Comcast and other companies are building up their network capacity and CableLabs’ DOCSIS 3.0 with 160 Mbs channel bonding enables a new level of IP video services. Telecoms such as Verizon have become veterans at delivering TV services over hundreds of video, music and HD channels. Their FiOS business reached 1.5M subscribers last year.

With all the fears of a recession and a tightening financial market hanging over the satellite industry in 2008, one  particular market that has provided a good revenue stream for the industry in recent years may remain constant or even continue to grow.  That market is the military and government sector worldwide.   The US government alone is estimated to spend nearly half a Billion dollars a years in commercial satellite prodicts and services, according to space consultant, Vice-Adm. Lyle Bien, USN (ret.)

Markets for satellite communications equipment and services have expanded to fill the gaps in terrestrial broadcasting and telecommunications networks. Nowhere is this more apparent than in the Middle East, which is the focus of this article. Comprising this picture are satellite operators, such as Arabsat and Nilesat; teleport operators in particular countries such as Dubai, Egypt and Jordan; and service providers who utilize these facilities to deliver applications to their Middle Eastern customers.