Despite Troop Withdrawals, Increased Reconnaissance and Intelligence-Gathering to Sustain Military Demand for Commercial Satellite Services

Market to Generate $45.8 Billion in Revenue Through 2015

CAMBRIDGE, MA--(Marketwire - November 6, 2007) - NSR today released its newest market survey and forecast report: "Government and Military Demand on Commercial Satellites, 4th Edition." The report provides an in-depth overview of government and military demand for all commercial satellite services around the globe over a 13-year period.

The impending pullout from Iraq and Afghanistan in the form of diminished troop levels is counter-intuitive or goes against logic that military demand for commercial bandwidth and satellite services will be sustained. At first glance, a pullout suggests limited presence and thus a decrease in military needs, at least from outsourcing capabilities to commercial assets. However, upon closer examination, the opposite is actually expected to take place as on the ground presence will be replaced by engagement at relative arms length via increased intelligence-gathering and reconnaissance missions.

The period of "shock-and-awe" and the subsequent peacekeeping activities that sustained military demand for commercial satellite services may be drawing to a close, but that does not mean that the U.S. and its allies will be disengaging from Iraq and Afghanistan anytime soon. "In fact, in light of growing concerns including the nuclear situation in Iran and the conflict between Turkey and Iraq that have contributed to higher oil prices at historical record levels, it becomes even more paramount for the U.S. Military and its allies to conduct greater if not sustained presence in the Middle East," states Jose del Rosario, Senior Analyst for NSR and author of the report.

Physical disengagement of troops should actually lead to greater bandwidth needs for other types of operations since engagement and presence will be accomplished remotely. "Going forward, the flashpoints of the globe cannot be out-of-sight, and they also cannot be out-of-reach, which is where the next area of procurement will take place. From weapons systems in the 'mini, mighty and mega' classes that included tanks, cannons, rockets and mortars of different sizes for different objectives, higher levels of fleet sizes for tactical unmanned aerial vehicles (UAVs), for instance, will become a growing component of the military's arsenal," states del Rosario. With UAVs, systems that are by nature "bandwidth hogs," the military's internal satellite assets will be taxed such that flexibility and the need to secure commercial bandwidth will lead once again to a sustainable military market for commercial satellite companies.

The report concludes that, from $1 billion in commercial satellite communications revenues in 2003, the market is expected to reach $7.2 billion by 2015 yielding total revenues of $45.8 billion over a 13-year period. Revenue growth continues to be driven largely by the U.S. Military, but other government agencies within and outside the United States increasingly require commercial satellite services as well, driving demand further. The report also examines non-U.S. Military needs, and forecasts for revenues and usage are included.

"Government and Military Demand on Commercial Satellites, 4th Edition" is a multi-client report now available from NSR. For additional information on this report, including a full table of contents, list of figures and executive summary, please visit 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 emerging technology, IP applications, 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.