Satellite Service to Airlines and Business Jets Poised for Growth Phase

L- and Ku-band Aeronautical Satellite Services Market to Reach $1.7 Billion by 2013


CAMBRIDGE, MA--(Marketwire - February 14, 2008) - NSR today released its newest market analysis and forecast report: "Aeronautical Satellite Services, Analyzing the Market Opportunity for Passenger Jets and Business Aviation." The report provides an in-depth analysis of demand trends and forecasts for L-band and Ku-band equipment and services in all regions, as well as Ku-band transponder demand for aeronautical satellite services in the next six years.

"Satellite services are an important piece of the puzzle to enable usage of mobile phones, laptops, PDAs and other communications devices onboard aircraft," stated Claude Rousseau, Senior Analyst for NSR and author of the report. He added that "in combining satellite links with technologies such as picocells and Wi-Fi networks, the aeronautical market is creating a compelling case for new mass market services."

Benefiting from this combination, NSR forecasts that aeronautical satellite services for commercial passenger aircraft and business jets will reach more than 27,000 in-service units and generate retail revenues of $1.7 billion by 2013. The Middle-East and Africa, as well as Asia, will show the strongest growth rates but in terms of installed units, North America is the leader with twice as many units as Europe and 50% more installed units over the next six years.

L-band units will comprise the majority of installed equipment with most at both ends of the aircraft spectrum (wide-body aircraft and mid- to small-size business jets) for both broadband and narrowband services. Broadband demand from crew and cabin passengers is on the upswing and opens up a window of opportunity for enhanced connectivity that is here to stay. The advent of SwiftBroadband services by Inmarsat will help rejuvenate the equipment of wide-body aircraft and is nearly a pre-requisite for many services such as GSM and e-mail access.

NSR expects Ku-band terminals to be sold mostly for narrow-body aircraft and heavy business jets. In addition, until a large airline becomes a bona-fide showcase for all to see, Ku-band will endure a lack of recognition of its capabilities and a low penetration rate in the lucrative wide-body market. The spotlight could shine on the North American region, where airline trials of Ku-band this year could potentially mean whole fleets would be outfitted and thus impact other airlines' decisions.

"Aeronautical Satellite Services, Analyzing the Market Opportunity for Passenger Jets and Business Aviation" 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 www.nsr.com or call NSR at 617-576-5771.

About NSR

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.