NSR Projects 4% Growth in Commercial Transponder Demand for 2006

Commercial Satellite Industry to Generate US$8.4 Billion by 2011 From Leased C- and Ku-Band Capacity


CAMBRIDGE, MA -- (MARKET WIRE) -- October 31, 2006 -- Northern Sky Research (NSR) today released its newest market survey and forecast report "Global Assessment of Satellite Demand, 3rd Edition: A Demand-Driven, Region-Specific Analysis of the Commercial Geostationary Satellite Transponder Market for 2005-2011." This report is the 3rd Edition of what has become an industry standard for the independent analysis of drivers and restraints on the commercial satellite capacity leasing market. This completely updated study provides a highly granular evaluation of demand for C-, Ku- and Ka-band satellite transponder capacity for seven specific satellite applications in twelve distinct regional markets. The study also offers some of the most in-depth and detailed analyses available to both those inside the industry and for the financial markets seeking to understand the underlying business potential.

NSR's research for this report indicates that demand for commercial C- and Ku-band capacity will grow on a global basis at the average annual rate of 3.2%. Between 2005 and 2011, almost 900 additional transponders of capacity will be leased for a large variety of satellite services. This growth will push the industry's annual revenues for leased capacity from US$6.7 billion in 2005 to over US$8.4 billion in 2011.

"Broadcasting and video services will account for four out of every five new dollars generated by the commercial satellite sector in the coming six years," remarked Patrick French, Senior Analyst for NSR and author of the report. "Regions that are particularly strong include North America, South Asia and Central & Eastern Europe, all of which are seeing rapid expansion in the use of commercial capacity for Direct-to-Home and other consumer video services."

In order to reach its conclusions on the market, NSR structured its research such that over 200 separate demand forecasts were generated so that a wealth of detailed information could be extracted from the commercial satellite market and provide the insights needed for companies to build successful business models. Separate regional C- and Ku-band demand forecasts were undertaken for each of the major satellite applications investigated in the study. These applications include video distribution, DTH, video contribution & occasional use television (OUTV), telephony & carrier, broadband, narrowband VSAT and a group of other niche satellite services. Whenever possible, NSR made use of a bottom-up market assessment methodology so that the root demand drivers and restraints would feed directly into the market assessment.

NSR has also long recognized that the commercial satellite industry is more a collection of regional markets than a unified global business. As such, all assessments were built-up starting on specific regional trends in order to obtain the global overview. The regions addressed in the study include: North America, Central America & Caribbean, South America, the Atlantic Ocean Region, Western Europe, Central & Eastern Europe, the Middle East & North Africa, Sub-Saharan Africa, East Asia, South Asia, Southeast Asia, and the Pacific Ocean Region.

Beyond NSR's own analysis of the market, this study is seen as a tool to be used by its clients in their own assessments of commercial satellite services. For this reason, NSR includes all of the study data in Excel files, along with a point-by-point forecast methodology, which allows readers to manipulate the data to suit their own internal forecast needs and their view on how each separate satellite application will develop in the twelve distinct regional markets. For additional information on this report, including a full table of contents, list of exhibits, and executive summary, please visit www.nsr.com or call NSR at 617-576-5771.

NSR is an international market research and consulting firm specializing in satellite and wireless technology and applications. NSR primary areas of expertise include satellite technology, IP applications, wireless convergence and broadcast services. With extensive expertise in all regions and a number of broadband sectors, NSR is a leading provider of in-depth market insight and analyses.

Contact Information: Contact: Ken Marini (781) 826-9484 Email Contact