Issue 1

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November 27th 2008

Issue 5

 

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Satellites: wealth creators

I was recently reading that the Indian Space Research Organisation is in the process of developing a new Internet satellite that will provide connectivity to rural areas of India. This will be an incredible asset to the people of the country, many of whom are simply cut off from terrestrial communications with no access to the things that we take for granted as inhabitants of towns and cities, well-served by terrestrial communications. ISRO have also worked extensively on attempts to make connectivity easier for those in remote areas such as reducing the cost of satellite phone usage. Other organisations in regions such as Africa, the Middle East and China strive to bridge the so-called Digital Divide and to ensure that those who are without connectivity to basic services such as telephone and Internet, are given this gift. How are they achieving this? Through the use of satellite, that’s how.

 

The International Telecommunications Union is spearheading a global effort that is aiming to ‘Connect the Unconnected’ by 2015. In doing so, the ITU has engaged governments, industry, development banks, financial institutions and civil society to help meet its goal. It’s a very ambitious project but one that will change millions of communities and lives. Satellite is bound to play a key part.

 

So how can satellites create wealth? There are many, many regions of the world where terrestrial communications simply do not exist, isolating communities from the outside world as we know it. They are miles away from towns and cities with poor infrastructure and not enough disposable income to get to the nearest city to do business or to access educational establishments.

 

Often, when a young person does get the opportunity to leave their remote community to study or to earn money in an urban area, they are forced to leave the place of their birth and move away leaving an ageing population that must look after the young. Satellite, with its unique capabilities, can help to buck this trend by bringing connectivity to these remote areas.

Projects like the ones undertaken by the ITU and ISRO can introduce telecommunications and Internet connectivity to remote villages and therefore help the people to position themselves where they can become part of the global marketplace. The Internet offers an absolute wealth of information whether this is on farming techniques, business tuition, access to governmental documentation and advice or online educational services. The Internet enables people to make the most of their skills and to create small businesses that can sell goods either over the Internet or in local towns. It also heightens the community awareness about technology, how to use and maintain a computer and it also offers a cheap alternative method of communication in email or VoIP. With communications, a village will retain its young people for longer as they will be able to remain with their families and gain an education through distance learning. Farmers cannot only provide food for themselves and their community but can sell surplus and make money. Access to banking institutions is also possible so that a village can enter the global banking system and access loans and other financial services in order to improve their way of life. Centres of learning have been established in communities in Thailand, for example, where IPTV content is delivered by satellite to provide tuition to classes and even allowing pupil-teacher interaction though the use of satellite video conferencing. The possibilities are endless.

 

It is incredible to think that a satellite, so far away from the earth can hold such benefit for a remote community – but it can. Other services such as cellular backhaul are helping to connect the most remote areas of the planet. The satellite industry is playing a crucial role in working towards bridging the Digital Divide. The creation of wealth is a by-product of this access to communications and this new-found wealth will literally change people’s lives.

 


 

Gilat shows slight decline in Third Quarter results
Revenues for the third quarter of 2008 were $65.3 million, compared to $71.5 million for the same period in 2007. Net loss for the third quarter of 2008 was $0.5 million or $0.01 per diluted share, compared to a net income of $5.9 million or $0.14 per diluted share in the third quarter of 2007. Non-GAAP net income for the third quarter of 2008 was $0.6 million, or $0.01 per diluted share, compared to net income of $6.1 million, or $0.15 per diluted share in the third quarter of 2007...

 

ITU advocates infrastructure sharing to counter investment drought
This year has also seen an unparalleled global financial crisis which may make it more difficult for investors to obtain financing for continuing network development. Sharing strategies, examined in the new ITU report, are seen as conducive for infrastructure development in the telecommunications/ICT sector, particularly in light of the deepening global financial crisis...

 

Alcatel Lucent appoint Paul Tufano as CFO

Alcatel-Lucent today announced that Hubert de Pesquidoux, CFO and President of Enterprise business, has decided to leave the company to pursue other opportunities. As of December 1st, 2008, Paul Tufano, a senior executive of 30 years of experience in international finance, will join the company as Executive Vice President, CFO...

 

EMS Technologies signs definitive agreement to acquire Satamatics
EMS Technologies, Inc. (NASDAQ:ELMG), announced today that it has signed a definitive agreement to acquire Satamatics Global Ltd., a global provider of Inmarsat IsatM2M (machine-to-machine or “M2M”) services, headquartered in Tewkesbury, UK...

 

 

 


 

 

Northern Sky Research Report: Data to the Rescue for MSS Handheld Operators

During the most recent call to analysts to discuss its 3rd quarter 2009 results, Globalstar highlighted its continued brisk data business, with shipped or received orders for more than 100,000 SPOT Satellite Messenger data units to date. At about $150 each, this represents approximately $15 million worth of revenues for this high-margin product.

 

But on the same day, Globalstar also divulged some very disconcerting news about its voice services in a regulatory filing with U.S. authorities. It stated that as of the end of the third quarter, it had decommissioned 10 of its 1st generation satellites out of the 52 currently in-orbit. The reason for this action: the S-band antennas used for two-way voice services on these satellites are basically dead due to solar irradiation. The future for the operator is predicted to be gloomier as it admits that it anticipates all of its satellites launched between 1998 and 2000 to "...cease to be able to support two-way communications" in early 2009.

 Read Full Story

News in Brief
On 29 October, Telenor announced its intention to fund its investment in India through a rights issue of NOK 12 billion. Telenor has now decided to evaluate alternative ways of funding the investment, including the previously announced rights issue.


As part of this process, Telenor has appointed Deutsche Bank as an independent financial adviser.

 


For the fourth consecutive year, Arqiva will be providing worldwide distribution of Armenia Fund's 11th annual Telethon. The internationally telecast fundraising event spans 12 hours of live, continuous coverage on the American Thanksgiving holiday, which falls this year on 27 November, and utilises Arqiva's satellite, terrestrial fiber and webstreaming infrastructure.

 

 


 

 

 

 


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