Mobile Satellite Services Sector Enters Heavy Launch Phase amidst Financial and Economic Uncertainty

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 first modern Olympics held in Athens in 1896 featured some 241 athletes and were probably witnessed by several thousand spectators. Well over 10,000 athletes are expected for the 2008 Summer Olympics in Beijing, and the best estimates are that the TV viewership records broken during the 2004 Olympics will be smashed once again this year with the possibility of over 4 billion people watching the events in the coming days.

Third Annual Event Draws Top-level Industry and Financial Representatives 

Industry executives, analysts and portfolio investment managers will gather in New York City this October 14th for the 3rd  annual ISCe Satellite Investment Symposium (ISIS NYC ‘08) to share their insights and predictions about the financial strength and future growth of the satellite business.

 Third Annual Event Draws Top-level Industry and Financial Representatives 

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

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

The annual ISCe Industry Awards for Lifetime Achievement, Innovation and  Industry Leadership was presented to Globecomm Systems Chairman and CEO, David Hershberg, ATCi and Boeing, respectively at a gala dinner during the 7thannual ISCe Conference and Expo in San Diego, California.

Hannover Fairs USA, Inc.announced today the conference program for its 7th annual ISCe International Conference and Exhibition.  ISCe 2008, scheduled for June 10-12 in San Diego, Calif., will focus on “Access to SATCOM for the Next Decade.” The conference will feature a unique combination of three of the most important communications events for the commercial satellite, military and government markets under one roof.

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.

Its NAB time again, and as you read this many of us in the industry will be gearing up for that lovely confab in the city of lost wages. I have one recommendation: check out satellite HD, MPEG-4, transcoding, and DVB-S2 products.

We’ve seen dramatic increases in consumer HDTV set sales over the past two years. With the DTV transition and analog over-the-air shut-off deadline of February 2009 looming, it’s hard not to expect we’ll see an upsurge in sales this year.   Consumer demand for HD programming is driving channel growth, and as a result, demand for HD satellite capacity.