News Analysis

Facing a US$ 175 million debt payment  Feb. 17, embattled US satellite radio operator, Sirius Satellite was bailed out by mogul John Malone of Liberty Media Corp. which has substantial interests in the leading satellite DT provider in the US, DirecTV and in the satellite broadband service, WildBlue. Sirius earlier announced that if it was unable to restructure its debt or come to an arrangement with a third party, it may have to declare bankruptcy. The Malone rescue was just in time and not only did it stave of bankruptcy for Sirius but a rival bid from DirecTV’s competitor, Charlie Ergen of Echostar, who has been buying up Sirius debt.

On February 17, 2009, US President Barack Obama signed the American Recovery and Reinvestment Act of 2009 into law which provides for a US$ 787 Billion economic stimulus package. Some of that money may filter to the satellite industry. Specifically, two items may be of interest to satellite companies-the US$ 7.2 Billion in grants to bring broadband internet service to rural areas and the US$ 1 Billion for NASA, which includes $400 million for space exploration.

Many industry observers are quick to note that the teleport business which has been undergoing considerable consolidation in the last few years is not as viable a business as it used to be. One relatively new entrant to the teleport business is trying to disprove the doubters.

by B.H. Schneiderman

Editor, Latin America

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.

610 government satellite planned for launch in the next decade

World government space program expenditures reached a historic high of more than $62 billion dollars in 2008, with planned satellite launches in the next ten years to increase 38% over the previous decade according to a report released in December 2008  by Euroconsult.

New NSR Report Projects More than 1,500 New Transponder Leases in Next Ten Years, and Revenues to Hit US$12.9 Billion

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. This new NSR report provides the industry's most complete examination of commercial satellite supply and demand in all regions and for each application over the next ten years.

Many vendors anticipate a decline in U.S. Military demand for commercial satellite services, and indeed President-elect Barack Obama has promised to withdraw troops from Iraq within a 16-month period, or by mid-2010. The impending pullout suggests limited presence and thus a decrease in military needs for satellite services, at least from outsourcing capabilities to commercial assets. However, President-elect Obama has likewise indicated that in Afghanistan, troop levels should actually increase.

Once considered the fertile crescent of Internet innovation, the United States now finds itself increasingly trailing the world in broadband, according to a report just released by Strategy Analytics. The report, “Sputnik Moment: The Call for a National Broadband Policy,?” suggests that only a coordinated and coherent national broadband plan will allow the US to regain its leadership role.