Mobile Satellite Services Moving Into Mainstream With New Products and Services

CAMBRIDGE, MA--(Marketwire - June 26, 2007) - NSR today released its newest market survey and forecast report: Mobile Satellite Services, 3rd Edition. The report provides an in-depth analysis of demand trends in eight regions of the globe for mobile satellite equipment and services using L-, C-, Ku-, and X-band, as well as L-and S-band via DARS, and mobile satellite TV, for the period 2005-2012.

Financial institutions have opened their pockets to large mobile satellite services (MSS) capital investments thanks in large part to a series of profitable quarters and rebuilt industry credibility after they rebounded from the highly publicized failures at the turn of the century. The obvious reach and coverage of MSS has broadened recently and should grow as approximately 60 satellites for MSS GEO fleets or LEO constellations will be launched in the next five years.

NSR estimates the global MSS market will grow from 1.8 million in-service units in 2005 to more than 6.7 million units at the end of 2012. L-band equipment will dominate the market, while Ku-band and, to a lesser extent, C-band will grow incrementally.

"The MSS market has benefited over the last few years from renewed interest and investment," stated Claude Rousseau, analyst for NSR and author of the report, "and innovative solutions with expanded service suites have brought greater capabilities to users for mobile voice, data, video and television."

One indicator of the health of the MSS sector is the entrance of new players such as Inmarsat, TerreStar, ICO and MSV in the satellite handheld business. The high growth rate of handhelds, aggressive and new unlimited pricing plans and the upcoming deployment of MSS with an Ancillary Terrestrial Component (ATC) are all likely to change the face of the industry, lead to some consolidation and expand the penetration rate of the MSS solutions into more mainstream mobile markets.

The major MSS growth area is still narrowband services with steady double-digit growth and more than 4.5 million in-service units projected by 2012 with handhelds making up slightly less than half of the total overall base. NSR also expects large data market growth rates fueled by a variety of applications such as asset tracking, location tracing, traffic information, sensor readings, machinery-to-machine communications and automatic reporting.

"The MSS sector is still a high-risk endeavor, and one risky business that many will be examining over the next few years is the MSS-ATC market," stated Rousseau. Should MSS-ATC broadband operators attract large numbers of consumer and public agency subscribers, satellite handhelds will gain a stronger foothold than ever before in the traditional mobile voice and media sector. However, delays have pushed back the launch of services, and few partnerships for the ATC segment have been signed to date.

About the Report

Mobile Satellite Services, 3rd 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

NSR is an international market research and consulting firm specializing in satellite and wireless technology and applications. NSR's 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.