An air of cautious optimism?

An air of cautious optimism was clear at the 2009 CommunicALeveraging its global satellite fleet to meet growing demand for connectivity everywhere, SES AMERICOM-NEW SKIES announced that IoGlobal has signed a multiyear agreement to create a new DVB IP platform on the NSS-11 satellite to keep NATO troops in Afghanistan connected with friends and family back home.sia and BroadcastAsia shows in Singapore this week. Against the backdrop of the current economic climate, the satellite industry has put on a resilient and optimistic face and, whilst acknowledging that there has been a downturn in some areas of the industry, on the whole it has been quite unaffected. For those companies involved in the provision of satellite systems and services for the automotive and oil and gas industries, there has been some impact. However, for those involved in DTH, video and broadcast, demand continues to grow. This is reflected in the healthy number of upcoming launches both for Asia and the rest of the world. Constant pressure on satellite spectrum has been brought about by huge demand for services such as video and backhaul. During the show itself, Space Systems Loral announced three manufacturing contracts which only reflects the positive mood of the operators at this time.

So what is driving satellite in the Asian region? The Cable and Broadcasting Association of Asia (CASBAA) has released new data on Asian Satellite demand. The “Video in Demand” Asian satellite services report shows a 9 percent market growth in 2008/2009 with some 1,370 transponders currently in use across the region. This was the highest growth rate reported over the last eight years by CASBAA and partner Euroconsult of France. Despite some high regulatory barriers, several markets have been particularly dynamic in terms of capacity requirements, including India, China and Indonesia.

While the growth cycle has been partially challenged by economic uncertainty, the impact on Asian satellite services has been relatively limited, with video broadcasting the primary growth engine. Indeed, the growth in TV broadcasting transponder demand increased from 25 percent in 2003 to 37 percent in 2008. In recent years, the growth has been focused on DTH TV broadcasting in emerging markets, particularly India. However, regionally from 2002 – 2008, the number of DTH platforms in Asia increased from just 13 to 28 platforms.

Companies continue to focus on the Asian region as a core part of their strategy. The enormous potential of the region is yet to be fully realised and enterprises are continuing to place Asia at the top of their hit list. The satellite industry is still growing and, though we will have to wait and see how this current financial crisis will develop, for now at least, the signs are very encouraging.

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