 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
Satellite Operators Grapple With Excess Capacity and Falling Lease Rates
San Jose - Feb 13, 2003 Amidst unfavorable economic conditions and the melt down in the telecommunications industry, the satellite transponder capacity leasing market in Europe, the Middle East, and Africa represents a ray of hope, as it continues to experience consistent growth and significant profits. New analysis from Frost & Sullivan, Commercial Geostationary Satellite Transponder Markets for Europe, the Middle East and Africa: Opportunities for Growth in an Uncertain World, reveals that revenues in this industry totaled $3.79 billion in 2002, and are projected to reach $4.88 billion by 2009. "Overall, the satellite capacity market is doing fairly well, especially when compared to the negative trends being seen in other sectors of the telecommunications industry," says Frost & Sullivan Industry Analyst Patrick French. However, satellite operators face numerous challenges that threaten to obstruct their path to greater profitability. Optimistic demand growth projections that led many operators to launch new transponders failed to materialize, leaving them with excess capacity and compelling them to reduce lease rates. Further compounding this problem is the migration of video broadcasting from analog to digital signals. Increased efficiency allows for more content to be broadcast per transponder. This cuts into the demand for new capacity. Moreover, the merger of major capacity lessors such as in the direct-to-home television sector is negatively affecting the demand for transponder capacity to relay programming. "Operators must squarely address these issues or face the risk of significant price competition as market participants stoop to any means to get their transponders sold," says French. While operators must compete with terrestrial networks to increase the use of satellites in fast growing networking applications, they must not lose sight of their biggest revenue generator, namely, video applications. "Locking in the key video market is more important for long-term success than over-emphasizing the networking market," observes French. Commercial Geostationary Satellite Transponder Markets for Europe, the Middle East and Africa: Opportunities for Growth in an Uncertain World Report: A398 Community Email This Article Comment On This Article Related Links Frost & Sullivan SpaceDaily Search SpaceDaily Subscribe To SpaceDaily Express The latest information about the Commercial Satellite Industry
Stratos Steps Closer To Xantic Acquisition
Bethesda MD (SPX) Jan 5, 2006Stratos Global recently announced it had taken a step closer toward the completion of the acquisition of Xantic, having received positive advice from the Works' Council in the Netherlands, and executed a definitive agreement to purchase Xantic from KPN and Telstra Corporation. |
|
|
| The content herein, unless otherwise known to be public domain, are Copyright 1995-2006 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA PortalReports are copyright European Space Agency. All NASA sourced material is public domain. Additionalcopyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement |
