EMEA Markets - Latest Developments
by Robert Bell, World Teleport Association
"Bursty," as you probably know, is a term for communications traffic that unexpectedly lurches from low data rates to high data rates. It is hard to deal with because it presents two unpleasant alternatives: sizing the circuit to handle the maximum requirement, which leaves a lot of expensive capacity idle, or settling for less capacity and knowing that service will slow to a crawl during periods of peak demand. The latest shared-bandwidth and bandwidth-on-demand solutions are specifically designed to deal with bursty traffic.
Simply put, 2008 and the first half of 2009 have been years best described in 1992 by Queen Elizabeth as annus horribillis. In other words, they really stunk. This is obvious to the millions of men and women dangerously out of work everywhere; to the North American auto industry; to those dependent on financial services for credit or to make payroll, and to the billions of folks in Asia who were raised out of poverty during the past two decades, but who find their rising economic circumstances in peril.
Embracing the world of media--Telcos, mobile network operators and ISPs are now as much a part of the media business as broadcasters, cable networks and satellite services. Each is fighting for its fair share of the revenues from what is still a healthy business. But everyone has to collaborate to make the content become a reality.
by Virgil Labrador, Editor-in-Chief
The Satellite Industry Association(SIA) released its 2009 State of the Satellite Industry Report at the ISCe 2009 conference in San Diego, June 3rd. The results of the report show a 19 percent growth in overall world satellite industry revenues – with revenues totaling $144.4 billion in 2008. Global revenues for the satellite industry continue to increase, averaging an annual growth rate of 14.2 percent from 2003 – 2008. Meanwhile, Euroconsult is projecting the industry will grow 50% in the next decade.
The total satellite industry today is estimated to produce about 1% of global communications revenues. Anybody care to try for 2%? At the 2009 NAB Show, the World Teleport Association and Society of Satellite Professionals International produced another year of their Content Distribution Forum on the show floor. Attendance was great despite the decline in overall exhibition traffic in this year of recession, which is having such an impact on the media business.

The 8th annual ISCe Conference. ISCe 2009, scheduled for June 2-4 in San Diego, California, will focus on SATCOM solutions for homeland security, disaster recovery and support for warfighters in the pursuit of victory. ISCe 2009 will provide attendees with unprecedented access to key military and civil agency decision makers.
With a new Administration in Washington, D.C., spending priorities across the board are being analyzed and reviewed. The results of this scrutiny could have significant ramification
Satellite TV is the biggest money maker for the overall satellite industry, creating investment, subscriber base and wealth. It rests on the solid revenue footing from a food chain that ranges from the end user paying for subscriptions to networks that collect from advertisers and affiliates like TV stations and cable systems. However, we are witnessing a new business model that provides a free service to end users who only need to buy reception equipment consisting of a dish with a digital set-top-box.
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.
