EMEA Markets - Latest Developments
Not too long ago when someone got on the internet the chances were it was to do email or to search for information. In other words communication was mainly one to one and users were primarily consumers of information. With a few exceptions these were not time sensitive pursuits and were heavily biased towards downstream communications. Not any more. Many users have become participants creating, sharing and commenting on content. This will come as no surprise to anyone with children in their teens or twenties, as this change in usage is being driven by them – the Millennial Generation.
by Tom Watts, CEO Watts Capital Partners
The current credit crisis and global recession has pressured satellite industry balance sheets around the world. The question, "Will they run out of cash?" has been asked with increasing frequency about many satellite companies that just months earlier looked forward to seemingly bright futures. While the public equity markets and many sources of debt financing have closed to satellite companies, the market for PIPEs, or Private Investments in Public Equity, offers a potential solution. In fact, the PIPEs market already has been the financial savior of at least one high-profile satellite operator.
The satellite broadband sector has gained a lot of ground as there are now approximately over one million individual users worldwide. These are families and small businesses who subscribe to service providers that address the individual consumer by providing a dish, modem and access to the Internet. With the familiar asymmetrical arrangement, these services deliver download speeds between 200 kbps and perhaps 1 Mbps; and upload speeds that hover at 100 kbps as a peak rate.
In these challenging economic times, it’s encouraging to know that there are still visionary companies that have ambitious plans aimed not at the most saturated, advanced countries but in the underserved developing countries. Denver, CO-based O3b Networks (registered in St. John, Jersey, Channel Islands) headed by Greg Wyler is one such company. Unlike other companies before that were high on ideals and low in practicality, O3b Networks, which stands for the "Other 3 billion," seems to know have a sound business plan to back up their lofty goals.
If you think you’ve explored every possible market for satellite services and products, think again. One of the industry’s best kept secrets is 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 Novermber in Istanbul, Turkey attracted 14,000 attendees in 2007 and 511 exhibiting companies from 44 countries.
The satellite industry will be facing serious challenges in raising new capital and credit due to the downturn in the world financial markets. This was the gist of a whole-day ISCe Satellite Investment Symposium (ISIS-NYC) held at the 3 West Club in midtown Manhattan, New York last October 13, 2008.
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.
