Mobile Satellite Services Sector Enters Heavy Launch Phase Amidst Financial and Economic Uncertainty
| Source: NSR
CAMBRIDGE, MA--(Marketwire - November 4, 2008) - NSR today released its newest market survey
and forecast report: "Mobile Satellite Services, 4th Edition," which
provides the industry's most in-depth analysis of supply and demand trends
for the mobile satellite services (MSS) market today. The report covers
eight global regions for MSS equipment and services, as well as transponder
demand for satellite handhelds, narrowband and broadband solutions, mobile
satellite TV, and MSS-ATC/CGC for the period 2006-2017.
"The next ten years will rival the heydays of the late 1990s for the MSS
industry with the launch of up to 160 MSS satellites," stated Claude
Rousseau, Senior Analyst for NSR and author of the report. "That total
does not count the number of FSS transponders in C-, Ku- and X-band that
will also be available to the mobile satellite market. However, despite
positive launch and supply trends, the stakes have never been so high given
the turbulence in global financial and economic markets, which may affect
demand."
After a difficult year, which saw the handheld market shaken by the woes of
one operator, and delays in satellite launches of another two operators,
the competition has increased greatly in satellite data services, which
will face-off against many terrestrial wireless products. But through the
introduction of new broadband satellite services, improved voice and data
products and dual-mode 3G and 4G satellite-terrestrial handheld devices,
NSR forecasts the MSS market will reach more than 18 million in-service
units and generate retail revenue of $17.1 billion for the period
2006-2017.
As construction of new MSS satellites concludes a heavy manufacturing cycle
over the next six years, operators will be busy figuring out how to best
distribute and sell new equipment and services in the traditional as well
as new volume-oriented and consumer-driven mobile communications markets.
The current base of users primarily uses narrowband products, such as
handhelds and data modems. The data via mobile satellite market is showing
spectacular growth in many aeronautical, land-mobile and maritime
applications.
In the coming years, the MSS business will be driven by better global
coverage, convergence of media, IP-based communications and lower cost per
bit as it reaches a wider set of end-user markets. The new, more powerful
and capable next-generation constellations, MSS-ATC satellites and European
CGC spacecraft to be launched in the next five years confirm that the
demand for broadband mobile solutions is powering the market. It will
drive new products and services such as Internet connectivity to airplanes,
satellite SmartPhones, integration with wireless access networks, and
mobile video/data applications.
However, the current credit crisis compounds the overhang on finances
which, for many MSS operators, is reaching critical levels as they seek to
fund the ground and space infrastructure for new services launch. As a
partial answer, operators are moving down the value-chain by acquiring
pieces of their distribution network to reap higher retail margins. But in
the end, the long-overdue horizontal consolidation of operators is likely
to provide more durable solutions to solve the economics of a promising MSS
business. The hope is that MSS operators should come out of this process
healthier with lower debt ratios, expanded product suites and leaner
capital requirements in time for lift-off.
About the Report
"Mobile Satellite Services, 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
www.nsr.com or call NSR at 617-576-5771.
About NSR
Northern Sky Research (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.