Goodbye 2008…Hello 2009: Prospects for the Satellite Industry

Let’s be honest, we will probably be glad to see the back of 2008. It has been a year full of financial turmoil and instability with all types of industry suffering across the globe. The banks cannot lend. Companies are finding it hard to get credit. We do not know what lies round the corner in 2009. It seems that things will get worse before getting better. However, can the satellite industry find the positives as we march on into 2009?

The industry can honestly say that it will be building on two years of growth. 2007 and 2008 were both strong years with high demand for satellite capacity and new and emerging applications taking hold. Nobody can possibly predict what will happen in the New Year but experts say that we should be expecting a slowdown in demand and therefore a slow down in growth. On the back of his latest report ‘Global Assessment of Satellite Demand’ Patrick French of Northern Sky Research remarked: "It is likely that commercial satellite operators will feel some discomfort over the next 12 to 18 months, but it will be more on the order of a few quarters of somewhat slower demand growth compared to the last few years, rather than outright transponder demand contraction. More importantly, the launch of numerous new satellites in the 2009-2010 time period, both strengthening existing orbital locations and opening new slots, should come just in time to address re-emerging demand in many sectors as economic conditions improve. This could well lead to a sharp boost in demand in the 2010 to 2011 period." So, it seems that there will be some impact on the satellite industry but it will be relatively short-lived.

The plethora of services that satellite provides would support this view. The DTH market is huge and more and more capacity is required to satisfy the demand for these services. On top of this, the demand for satellite in government and military markets is also a very important area for the industry. Military applications are becoming more complex and demanding higher amounts of bandwidth for which governments are looking towards commercial operators to provide. The market for satellite backhaul in the more remote areas of the world is experiencing significant growth. Satellite is also offering a solution to bridging the ‘Digital Divide’ and connecting underserved areas. It is aiding disaster recovery efforts. It is also connecting industry. It is taking broadband to areas where there is no prior infrastructure. It is used for telephony, video and so much more. Satellite is having a big impact globally and is used in many, many different ways.

The emerging markets of the world are also driving demand for satellite communications. Countries such as China, India and Russia, all vast countries with huge populations and with increasing amounts of disposable income, will be looking towards satellite to provide them with opportunities.

The fact that satellite can do so much and that it provides ubiquitous and unique capabilities stands it in good stead for the future but this is not going to be an easy ride and the industry is well aware of this. All sectors of the industry will have to be patient and wait to see how the situation moves on in 2009, but must be also flexible and be prepared to roll with the punches.

Government Space program expenditures worldwide hit a record US$62billion
Euroconsult has announced that world government space program expenditures are at a historical 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...

Inmarsat appoints new COO
Inmarsat has announced that Perry Melton will assume responsibility of Chief Operating Officer with effect from 1 January 2009...

Marsh to open branch office in Dalian
Marsh, the world's leading insurance broker and risk advisor, today said it has received regulatory approval to set up a branch office in Dalian, the largest city in Liaoning province...

Per Simonsen has been appointed CEO of the newly established Telenor company
Telenor Connexion is a newly established international company that aims at taking a strong position in the market for connecting devices, also known as machine-to-machine communication (M2M). The company will provide SIM cards and mobile connectivity to large, global enterprises in selected industries and markets around the world...

Frost & Sullivan focuses on growth opportunities
Over the past nine years the Russian economy has demonstrated strong growth, spurring investors to seriously consider the economic benefits of Russian investments. Currently, Russia is the world's second biggest producer of oil, it is not dependent on foreign capital flows, is relatively stable politically, boasts reasonable market valuations as well as having access to the biggest growth story of our time, Asia. Having studied and pioneered growth consulting in Russia for many years, the global growth consulting and partnership company Frost & Sullivan recently launched a service covering Russia and CIS (Commonwealth of Independent States) focused on providing the insight and guidance required for breaking into this promising but, at the same time, risky economy...