As we head towards the end of 2008, leadership, change and the future are the three most prominent words in speechesgiven 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, wherePresident Sarkozywas 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 cachange,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 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.
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. This represents three out of every five people on the face of the planet and, quite simply, is a feat that would be essentially impossible to achieve without the use of satellites.
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?
Inmarsat’s new, Fleet Broadband services is facing never anticipated competition. Its huge investment in its i4 satellite system and its revenue stream are being challenged by the proliferation of Ku Band deep ocean coverage and new hybrid VSAT/L Band solutions as well as by Iridium’s new OpenPort service. For those merchant shipping users that demand high capacity broadband, typically large fleet owners, rising demand for fixed priced broadband is making Inmarsat’s “pay-by-the-byte” services unaffordable at high usage levels and price-challenged at low usage levels. OpenPortsm offers volume based 128 Kbs service will be available at a cost significantly lower than Inmarsat.
Summit, Mt. Everest, Nepal, May 27, 2008 – J. Armand Musey and his climbing team successfully reached the 29,028-foot summit of Mt. Everest, capping an arduous six-week expedition over the most challenging terrain in the world.
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.
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.
Now, is HDTV “the next best thing to being there,” or does it really stand for “Hyped-Up Digital Television”?
Satellite service providers in Asia and around the world are turning to the 2008 Summer Olympic Games in Beijing in August for the answer to this $1080 question. The betting is that the Beijing Olympics, which China is marketing as the “HDTV Olympics,” will indeed accelerate the adoption of HDTV worldwide and will more than make up for HDTV’s underwhelming Olympic sports debut at Athens in 2004.
Many, if not most, who I consulted with through the many months leading to the March 24, 2008, U.S. Department of Justice’s (DOJ) Sirius-XM merger-to-monopoly decision, believed it would favor the merger. But just about everyone was nonplussed by the form it took. This is because not only were there no conditions, caveats, or concerns expressed, but the rationale used to justify it was just plain bizarre. Indeed, this satellite radio decision gives new (and derisive) meaning to the words “monopoly,” “competition” and “antitrust regulation” in America.