Vol. 2 No.1 January 1-15, 2009 - Satellite Markets · 2014-09-04 · Chandrayaan-1 lunar orbiter Oct. 22. (ISRO photo) from the private sector. Space entrepreneur Peter Diamandis,

Satellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive BriefingSatellite Executive Briefing January 1-15, 2009

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ContentsContentsContentsContentsContents

by Virgil Labrador Editor-in-Chief

Vol. 2 No.1 January 1-15, 2009

Sa Sa Sa Sa Satellite tellite tellite tellite tellite TTTTTrrrrrendsendsendsendsends to to to to to WWWWWaaaaatch in 2009tch in 2009tch in 2009tch in 2009tch in 2009

Market Trends:

Top SatelliteTrends to Watch in 2009by Virgil Labrador..........................................1

Commercial Satelltie Industry Set to Groweven in Troubled Economic TimesbyNSR................................................................9

Feature:

Reaching out to the ‘Other 3 Billion’ byBernardo Schneiderman.........................10

Executive Views:

Interview with Greg WylerCEO, O3b Networks.................................12

Interview with Dr. Ilhami Aygun, CEO,Space Systems International..................17

Show Report

BCS Eurasia 2008....................................16

Regular Sections

From the Editor............................................2Calendar of Events......................................8News Briefs..................................................6Vital Statistics.............................................13Stock Quotes/SatIMarket Index..............14Company Profile: ApplicationTechnology Strategy Inc.....................17

.....

EuroconEsult

(Continued on page 3)

“In the middle of difficulty liesopportunity.”

-Albert Einstein

It’s the Economy....

Beginning with what seemed like anotherpromising year for the satellite industry, 2008saw the world’s economy go down in aspiralling downturn that brought us into theworld’s worst recession since the GreatDepression in 1933. They don’t have a namefor this recession yet (remember the “Oil Crisis”of the 70s and the “Telecom and Dot.com Bust”of the late 90s/early 2000s). But then againwe are just in the beginning of this one. Noone can really foretell what lies ahead, but itwill almost certainly get worse before it getsbetter.

Soon after the financial markets came crashingdown in mid-September, key satelliteexecutives speaking at the SATCON show inNew York were affirming that the fixed satellitebusiness and by extension, the other satelliteindustry segments, are fundamentally sound.FSS operators said that they have hugebacklogs and are locked into long-termcontracts. This may be so, but we haven’tseen this kind of an economic downturn in mostof our lifetimes--including the most senior CEOsof the industry.

In contrast, participants at the ISIS SatelliteInvestment conference in New York just a daybefore SATCON were more candid about thefinancial prospects in the industry. Theparticipants at the conference were mostlyfinancial analysts and their message was loud

and clear: the satellite industry will be facing seriouschallenges in raising new capital and credit due to thedownturn in the world financial markets. The bottomlineis it will be almost impossible to get financing for highticket projects and those that can get funding mayhave to pay more for it. So the consensus was thatcompanies who are rich in cash are in the best position,while companies that are heavily leveraged willdefintely have a rough road ahead.

If there is any doubt that the satellite industry will beaffected by the economic downturn, check out theSatellite Market IndexTM on page 15 of this issue whichtracks the stock performace of a composite of 25publicly-traded satellite companies. Every one of them

lost an average of 40% in value from their high in2008. Compared with the performance of the Standard& Poor 500 Index, the Satellite Markets IndexTM hasa comparable rate of decrease in value during 2008.

Leadership Change-Good for Broadband?

One counterbalancing development to the economicdownturn is the historic change in leadership in theU.S.--the election of Barack Obama to what is arguablythe most powerful position in the world today. Fromthe perspective of the satellite and telecommunicationsindustry, Obama aims to revitailize the broadbandsector and promote greater access to the internet,which his administration has identified as a priority.The President-elect will have his work cut out for him,

(Click on the headline to go directly to the story)


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EDITORIAL STAFF

Virgil LabradorEditor-in-Chief and Editor, [email protected]

Peter I. GalaceEditor, [email protected]

Howard GreenfieldEditor, Europe, Middle East and Africa(EMEA)[email protected]

Contributing Writers:

Bruce Elbert, Dan Freyer, Robert Bell,Alan Gottlieb, Lou ZacharillaNorth America

B. H. SchneidermanLatin America

SYNTHESIS PUBLICATIONS LLCP.O.Box 4174, West Covina CA 91791 USA

Phone: +1-626-931-6395 Fax +1-425-969-2654E-mail: [email protected]

For Advertising Inquiries:[email protected]

Advertisers’ Index Advertisers’ Index Advertisers’ Index Advertisers’ Index Advertisers’ Index AdWavez Marketing......................4 www.adwavez.com

Application Technology Strategy...3 www.applicationstrategy.com

NDSatCom..................................12 www.ndsatcom.com

Satellite Technology Guide...........9 www.satellitemarkets.com/node/34

Satellite Executive Briefing is publishedbimonthly by Synthesis Publications LLC

and is available forfree atwww.satellitemarkets.com

Cover StoryFrom the Editor

New Year, New Leaf

Virgil LabradorEditor-in-Chief

P.S. We’ve love to hear your comments and suggestions on our new format andfor any changes you’d like to see, article ideas or just your opinions, e-mail meat [email protected]

© 2009 No part of this publication may bereprinted or reproduced without prior writtenconsent from publisher.

2008 has passed and a New Year has begun. With all that happened in 2008, pundits are saying that the only good thing about 2008 is that it’s finally over. A

New year brings the possibility for a fresh start and we’ve taken this opportunityto bring about changes in our publications to better serve you, our readers.

We’ve made a number of changes to our newsletter this year to even make it a moreuseful tool for busy satellite executives like you. We've streamlined the format of theissue and added new useful features and market tools such as tracking data on key

industry sectors and the Satellite Markets 25 IndexTM. We are increasing the frequency of the newslet-ter this year to every two weeks. This is to ensure that you get a summary of the last two weeks’ newsand developments. We bring you all the news that you need to know--not every disjointed headline butthe stories beyond the headlines. Plus we show you where the industry is heading and where theopportunities are. The top news stories are organized by region in the News Briefs section of thenewsletter (see page 6).

We've also added important data on key indicators of the industry in the Vital Statistics section, wherewe track information such as subscriber numbers of DTH, broadband, satellite radio and satphones,among others (see page 13 and our website at http://www.satellitemarkets.com/node/9).

The most important new feature that we've added is Satellite Markets 25 IndexTM -- a composite indexof 25 publicly-traded satellite companies worldwide with five companies representing each major marketsegment of the industry. We include the latest stock information of the 25 companies representing the keymarket segments of satellite operators, satellite and ground equipment manufacturers, service providersand consumer services and provide historical performance comparing the Satellite Markets Index withS&P 500 and others (see page 14).

You have enough to worry about. You shouldn't have to spend a good part of your day going throughmyriad headlines that only tell you part of the story. Our staff are dedicated to providing you with the latestinformation in a concise and easy-to-read format. Our mantra is "give us 15 minutes and we'll not only tellyou what happened in the industry in the last two weeks, but where the industry is heading."

It's going to be a rough road ahead. To navigate through this challenging time, you need to haveaccurate, reliable and actionable information. Our goal is to provide you with the necessary informationtools to help in your business decision-making, identify trends and opportunities and ultimately contributeto improving your bottom line.

Here’s wishing you all sucess in the New Year,


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Top Trends......from page 1 Interview

APPLICATIONTECHNOLOGYSTRATEGY, INC.

(Continued next page )

• Space and ground segment design• Program management• Satellite link and propagation engineering• Cost reduction and performance optimization• Selection of the best space and ground resources

Application Technology Strategy, Inc., (ATSI), is the satellite consulting firm founded by Bruce Elbert, leadingsatellite expert and consultant, technologist, educator and author of standard industry books.

• Systems engineering and design• Training and education• Contract and specification negotiation• Expert testimony• Advice to Investors• Research and interpretation of data

3290 Morning Ridge Avenue, Thousand Oaks, CA 91362 USAtel +1 805 531 9692• fax +1 805 531 9693• e-mail: [email protected]

www.applicationstrategy.com

in addition to all his other concerns, he has to facea possible delay in the transition to Digital Television(DTV) in the US scheduled for February 17, 2009.

It is widely accepted that satellite technology willplay an important role in any major effort to promotebroadband access. The Satellite IndustryAssociation has already started lobbying Congressto include satellite-delivered broadband deploymentincentives and grants as part of any economicstimulus bill. In a letter sent to Congress in mid-December, SIA President Patricia Cooperproposed focusing any incentives on end-userequipment and installation costs, an effort that couldspur broadband adoption among more than 10million consumers who are considered unservedor underserved by broadband.

India and China and a New Space Race?

2008 can be considered a banner year for thespace industries of the emerging countries of Chinaand India. Chinese companies built and launchedin October Venezuela’s first satellite, Venesat-1. Inthe same month, Chinese Aerospace Science andTechnology Corp. (CAST) that built the Venesat-1, signed a deal with Pakistan for Paksat-1R.

China, India, Japan andthe European SpaceAgency have beenbeefing up their spaceprograms with veryambitious goals that harkback to the 60s SpaceRace between the US andthe Soviet Union. Chinalaunched its first mannedspace mission in 2003and in September 2008, athree-man mission did aspace walk. Both Chinaand India plan to land manned missions on themoon by the middle of the next decade.

The significance of this new Space Race is that likethe Cold War Space race, it could result in manytechnological and economic dividends that couldhelp alleviate the impact of the recession. “Chinahas read the Apollo playbook. They understandeverything the U.S.got the lunar program,” saidJoan Johnson-Freese ofthe Naval War College.

One big difference from the old Space Race is thatthis new Space Race features an increasing role

India launched theC h a n d r a y a a n - 1lunar orbiter Oct.22. (ISRO photo)

from the private sector. Space entrepreneur PeterDiamandis, who founded the space tourismventures, Space Adventures and Zero GravityCorporation, has teamed up wtih Google to offera $30 million Lunar X Prize for the first privatecompany to land a rover to the moon by 2012.

A New Space Race will have many spin-off effectson the world’s economies. One only needs tolook at the first Space Race betwen the US andthe former Soviet Union which was started bythe launch of the very first man-made satellite,Sputnik, and jump started the commercial satelliteindustry.

Fourth Time’s the Charm for SpaceX

Southern California-based Space ExplorationTechnologies Corp. (SpaceX), founded byinternet entrepreneur Elon Musk finally succededin its fourth try in launching its low-cost alternativelaunch vehicle, Falcon 1 in September 2008. InDecember, NASA made a surprisingannouncement by awarding the US$ 3.4 BillionCargo Resupply Services (CRS) for the

http://www.applicationstrategy.com


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The sustainability of Satellite Radio in the US maybe in doubt, despite reaching a large number ofsubscribers in a few years, may have beenhandicapped by a bidding war for big name talentlike Howard Stern who signed a five-year US$ 500million deal with Sirius (Sirius XM photo).

International Space Station contract to SpaceXand the Orbital Sciences Corporation. Both SpaceXand Orbital provide lower costalternatives to launch services and beatBoeing and Lockheed Martin for thislucrative contract.

It would be interesting to see if lowercost alterantive providers like SpaceXare able to sustain this initial successand get a higher slice of the launchmarket pie. Already the Indian SpaceResearch Organization (ISRO)announced in late December that it isdeveloping a next generation rocket thataims to cut launch costs by half.

Consumer Satellite Services-WillThey Survive?

One of the biggest stories of 2008 wasthe approval by US regulatoryauthorities of the merger of satellite radiooperators Sirius and XM after a 17-month process. The merger wasopposed by many groups saying it will create amonopoly, but regulators bought Sirius and XM’sargument that in the new media environment , the

merged Sirius XM Radio will actually be competingagainst many delivery formats like the internet and

mobile devices such as cellphones, personal digitalassistants (PDA) and iPods, among others. Inapproving the merger, some analysts saw an

opening which might lead to the revival of theEchostar-DirecTV merger which was rejected by

the FCC two years before.

The Sirius-XM merger may have come toolate. Despite having reached 18.6 milionsubscribers in record time, the combinedcompany is facing US$ 1.1 Billion in debtrepayment due in 2009 and is struggling torise the cash. The company is heavily indebt, partly because of lucrative contractswith high profile talents like Howard Stern,Oprah Winfrey and Martha Stewart, amongothers. Meanwhile, Sirius XM stocks haveplummeted 96 percent of its high in 2008.If Sirius XM is unable to make the paymentsor renegotiate its debt, it may have todeclare bankruptcy in 2009.

2008 also saw the bankruptcy of satelliteradio operator, WorldSpace, and Japanesemobile TV business, Mobile BroadcastingCorp. The highly touted TU Media mobileTV service in Korea is also struggling toreach profitabilty. In the US, while DirecTV

is holding steady, its competitor Echostar postedsubcriber losses for the first time in its history. Theone bright spot is consumer satellite broadband

http://satellite.adwavez.com/


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Virgil Labrador is the Editor-in-Chief of Satellite Markets and Research based in LosAngeles, California. He is the author of two books on the satellite industry and has beencovering the industry for various publications since 1998. Before that he worked invarious capacities in the industry, including a stintas marketing director for the AsiaBroadcast Center, a full-service teleport based in Singapore. He can be reached [email protected]

Cover StoryCover Story

services like WildBlue and Hughes NetworkSystem’s Spaceway in the US which are steadilygaining subscribers from mainly the underservedrural areas.

Emerging Markets to the Fore

With the recession in full swing inthe established markets like NorthAmerica and Western Europe, it’sonly natural to see a shift towardsthe emerging markets, which arenot as affected by the turmoils inthe global financial system. Onecompany which launched in 2008dedicated to providing satellitebroadband services to thedeveloping world is O3b Networks(see article on page 8). O3b isplanning an all Ka-band, 16-satellite network to providecoverage to the poorest countriesin Africa, Asia and Latin America,the first 8 of which are scheduled for launch in2010. It has already announced that it has secured$200 million worth of contracts just in the last quarterof 2008, mainly from African service providers. Itis estimated that only five percent of the populationin Africa has access to the internet, making it afertile market indeed.

Applications, Applications, Applications

The telecommunications industry has changed.Customers and users are “technology agnostic”meaning they don’t care how their service is beingdelivered as long as it’s fast and reliable and high-quality. Satellites technology does not have tocompete head to head with other media such asfiber, cable or wireless but complements them.Most networks are now hybrid networks with satelliteas part of the mix, providing extensive coveragebeyond terrestrial limits .This has resulted in a shifttowards applications. The right application is reallythe key to a succesful venture and here are fewpromising ones to watch out for:

Video on Demand (VOD). At the ConsumerElectronics Show 2009 in Las Vegas lastweek,research firm Strategy Analytics revealedthe results of a study that showed that theoverwhelming majority of consumers saw videoon demand services as the most valuable feature

of broadcast services. Look for VOD to be drivingdemand for bandwidth for services not just traditionalbroadcast and cable TV, but IPTV to and mobileTV.

Digital Signage. Applications that deliver videoto audiences in retail, hospitality, publictransportation, office waiting areas and movietheaters are expected to continue to grow in 2009,accrindg to research reports. The demand isdriven by consumers who are used to watchingvideo and expect to see it everywhere such aswhile waiting at the gas pump or at a doctor’s office.Retailers also need the added incentive forcustomers to buy while in their store by addingtargeted advertising messages in their videoofferings.

In-flight Satellite Broadband Service.After the failure of the Connexion by Boeingin-flight satellite service in 2006, a company isrevisiting this technology, with a more modestbusiness plan. Row44 demonstrated their in-flight wi-fi service at the CES show last week

and Southwest and Alaska airlines are tryingout the service in a few of their planes thisyear. The services uses a signal from theHorizons-1 satellite providing an estimated30 Mbps data rate per plane. Maybe thistime starting smaller and more incrementallywill finally bring back satellite wi-fi to the skies.

3-D Broadcast Services. Finally, one tech-nology that has been around since the 50smay revolutionize broadcasting in the 21stcentury. 3-D is the stuff of science fiction, asillustrated in the television series, V, that

showed life like 3-D images being broad-casted into people’s homes. But 3-D broad-casts of concerts like Madonna and HannahMontana played to enthusiastic audiences in

2008 and this year, sports fans were treatedto a 3-D broadcast of the Rose Bowl gameand the forthcoming Super Bowl in select lo-cations. 3-D broadcasts are still in a very earlystage of development but this is certainly atechnolgy that could drive bandwidth demandif it takes off.

Conclusion

Despite the worldwide economic downturn,the satellite industry should be well poised toweather the crisis and emerge from it as strongas before or even more, as it has done inother downturns. Staple satellite services likebroadcasting and telecoms should not suffervery much from the crisis and there are manynew applications in the pipeline with great po-tential. So there is enough reason to be , assatellite executives are prone say “cautiouslyoptimistic.”

There is a huge potential market in in-flight and aircraftsatellite services according to this chart by NSR.


6Cover Story News Briefs

C o v e rAmericas

A summary of the major news developments, key contract signing and executivemoves in the global satellite industry from January 1-15, 2009, categorized byregion.

Top Stories

FCC Approves ICO’s ATCApplication

The U.S. Federal CommunicationsCommission (FCC) approved Jan.14the application of ICO GlobalCommunications (Holdings)Limited’s subsidiary, New ICOSatellite Services G.P., use of anancillary terrestrial component(ATC) in conjunction with its mobilesatellite services (MSS).

DirecTV Completes StockRepurchase ProgramUS Direct-to-Home satelliteoperator, DirecTV Group, whichoperates the DirecTV satellitetelevision service completed Jan.12 the $3 billion stock repurchaseprogram it announced in May oflast year. The company’s board ofdirectors also approved therepurchase of up to an additional$2 billion of its common stock.

AT&T to Launch MobileVideo Service-”CruiseCast”AT&T is getting into the mobilesatellite business with a consumervideo platform to be called“CruiseCast.” AT&T is partneringwith RaySat Broadcasting onAT&T CruiseCast, an in-carentertainment service offering 22satellite-delivered video channelsacross the nation. The technologywas emonstrated at the ConsumerElectronic Show in Las Vegas theweek of Jan. 7.

Venezuela Broadcasts itsFirst Satellite TrasmissionVenezuela launched first satelliteradio and television transmissionJan. 10, from the Chinese-builtVenesat-1 satellite launched fromOctober. Venesat-1, also known asSimon Bolivar satellite, will bebroadcasting health, education,community work, agriculture andother programs.

Sirius XM Radio Moves toAddress Maturing DebtIssues

In a filing withthe U.S. Securities andExchange Commission, Sirius XMsaid it issued 45.2 million shares of itscommon stock in exchange for $6million in convertible notes owned byinstitutional holders. After the ex-change, $187.588 million in that debtremains outstanding, the companysaid.In addition to the notes due inFebruary, Sirius XM has $350 mil-lion due in May and another $400million by year’s end.

U.S. Air Force Renews TSAT

CompetitionThe US Air Force formallyrenewed a competition betweenBoeing and Lockheed Martin forthe TransformationalCommunications Satellite (TSAT)system valued at as much as $11billion after the service changed theprogram’s specifications to reducecosts.

Key Contract Signings

•Orbital Sciences Corporationwas selected to design, manufactureand test a new commercial communi-cations spacecraft known as NewDawn. by Intelsat, Ltd. which

formed a joint venture with Conver-gence Partners to own and operatethe satellite. The New Dawn satellitewill address the growing needs forfixed satellite services such as voicecommunications, wireless backhaul,Internet connectivity and broadcastmedia applications across the conti-nent of Africa.

•SES NEW SKIES announcedJan. 14that it will host IPTV Ameri-cas on its NSS-806 satellite. This willenable IPTV Americas to offer anend-to-end satellite-delivered IPTVdistribution solution to all telecommu-nications and cable operators’ headends in Latin America and the Carib-bean.

•Globecomm Systems Inc.’swholly owned subsidiary,Globecomm Services Marylandhas received a contract from PeaceCorps valued at $2.4 million.

•DataPath, Inc. has beenawarded US$100 million by theU.S. Army to manufacture andintegrate Ka-band conversion kitsand provide spares kits.

•Vizada has won a contract Jan. 7with Delta Wave CommunicationsInc. to supply the US Army Corp ofEngineers (USACE) with Inmarsatand Iridium mobile satell itecommunications services in the UnitedStates and overseas. Vizada willprovide sub-contracted services toDelta Wave as part of a deal worthup to $3 million dollars per year overa three-year period.

•Comtech TelecommunicationsCorp.’s Maryland-based subsid-iary, Comtech Mobile Datacom Cor-poration, has received an order for$282.0 million under its MovementTracking System, or MTS contract,

with the U.S. Army. The contract isthe largest inComtech’s history.E x e c u t i v eMoves•AlliantTechsystems’Board ofDirectors haselected Blake Larson to beSenior Vice President andPresident, ATK Space Systems.

•Hughes Network Systemsappointed Richard Lober Vice-President of defense andintelligence systems.

•Harris Corporation has namedMajor General USAF (Ret.)Dale W. Meyerrose to the newlycreated position of vice presidentand general manager, Cyber andInformation Assurance.

• Edward M. Morris has joinedITT Space Systems Division asexecutive director of strategicbusiness development

•Arrowhead Global Solutions,the government services divisionof CapRock Communications,appointed David MyersExecutive Vice President andGeneral Manager.Myersprevisouly was director ofbusiness development atSpacenet.

•Integral Systems has namedJohn Monahan president of itssubsidiary, RT Logic.

•Douglas Brandon has beenappointed general counsel,secretary and senior vicepresident of TerreStar and itssubsidiaries.

Blake Larson


7Cover Story News Briefs

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CoverEMEA/Asia Pacific

Top Stories

NDS Shareholders Ap-prove Move to Go PrivateConditional access solutions pro-vider NDS shareholders have ap-proved Jan. 13 the proposed trans-action to take the company private. Ifthe transaction is completed, NewsCorp. and funds advised by PermiraAdvisers would own about 49 per-cent and 51 percent of NDS, respec-tively.France to Provide Technol-ogy, Financing for SecondVietnamese SatelliteFrance will be providing technicaland financial for second Vietnam-ese satellite, VNREDSat-1, accord-ing to press reports quoting top Viet-namese goverment officials.CanalSat and TPS BeingInvestigatedThe French competition authorityConseil de la Concurrence is toinvestigate the merger betweenDTH operators CanalSat andTPS following complaints,according to local mediareports.Complainants allege thatCanal+ has not fully complied withits promise to offer some channelsto all distributors and continued tokeep exclusive rights to a numberof channels, as well as to mainlyAmerrican movies on their VODplatform.

Sky Perfect JSAT CompletsStock Buyback

Japanese DTH operator SkyPerfect JSAT has completed the

share buyback it initiated at thebeginning of December. Thecompany acquired 13,527 sharesat a price of Y568.79m (US$6.26million).

EADS Astrium CompletesSSTL AcquisitionEADS Astrium completed iitsacquisition of micro satellitemanufacturer Surrey SatellitesTechnology Ltd. (SSTL) Jan. 13.following the approval by theEuropean Commission (EC), ofthe deal in December. TheUniversity of Surrey to sold itsmajority stake of 85 in SSTL. SSTLwill remain an independent U.K.company and retain its own brand,according to the company .

French DTH OperatorTNTSAT Reaches 1 MillionHouseholds

The French digital terrestrial free-TV service TNTSAT via the ASTRAsatellite system has achieved theone million households threshholdafter only 16 months after its launch.TNTSAT plans to launch an HDservice in February 2009.

Albertis Telecom IncreasesStake in Hispasat

Albertis Telecom has beenauthorized by the SpanishGovernment to acquire 5 percentof satellite operator Hispasat fromEADS/CASA, increasingHispasat’s share to 33.4 percent ata cost of $47.6 million, accrindg tomedia reports.

Elbit Systems MakesPurchase Offer to ShironSatellite CommunicationsElbit Systems Ltd. announcedthat on Jan. 8, that its wholly-ownedIsraeli subsidiary, Elbit SystemsLand and C4I - Tadiran Ltd.signed a share purchaseagreement with shareholders ofmore than 90% of the shares ofShiron SatelliteCommunications Ltd. for thepurpose of buying 100% ofShiron’s issued share capital, forthe total consideration of U.S.$16million.

Key Contract Signings

•Arianespace signed a contract withIntelsat for the launch of one satel-lite with the option to launch four moresatellites between 2011 and 2015.

•Mitsubishi Heavy IndustriesLtd. has received an order from theKorea Aerospace Research Institutefor the launch of a South Korean mul-tipurpose satellite, to be aided byJapan’s domestically developed mainrocket the H-2A.

•O3b Networks announced Jan.12that Congo’s Microcom DRC hassigned a multi-year, multi-million dol-lar contract for O3b Networks’s QuickStart service. In its 4q 2008 report,O3b said it has closed over US$ 200million in contracts mainly from Afica.

•Comtech EF Data received $1.4million in orders for satellite commu-nications equipment from an un-named company in Africa.

•Emerging MarketsCommunications (EMC) signedcapcity contracts wtih Middle

Eastern satellite operators Yahsatand Arabsat worth $200 million.

•SES ASTRA, and GlobeCast,announced the signing of acapacity contract Jan. 6 with theFrench telecommunicationsoperator Orange to distribute itsnew Orange TV offer via satellite,particularly targeting French homeswith no TV coverage over ADSL.

•Malaysian satellite operatorMEASAT Satellite Systems Sdn.Bhd. announced Jan.12 that anagreement had been signed todistribute the All Sports Network HDchannel via the MEASAT-3 satellite.Avanti Communications Groupplc has signed a contract to supplywholesalebroadband services toComputex Telecommunications Sp ofPoland and another conract with withthe Department of Enterprise Tradeand Investment for supply of remotebroadband services in Northern Ire-land. The two contract are worth over£1.2 million (US$ 1.77 million).

ExecutiveMoves

•AlexKeyse hasjoinedsatelliterouter andmultiplexercompanyVocalityas SalesManager,Europe.

•Ofcom, the U.K. communicationsregulator, appointed Colette Boweas its new chairman.

Alex Keyse


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January 18-21, 2009 PTC 2009 Hilton Hawaiian Village, Waikiki,Honolulu, Hawaii, USA Tel: +1 (808) 941-3789 Fax: +1 (808) 944-94874E-mail: [email protected] web: www.ptc.org

March 24-27, 2009 SATELLITE 2009 Walter E. Washington ConventionCenter, Washington, D.C. USA Tel: +1 (301) 354-2000 E-mail:[email protected] web: www.satellite2009.com/

April 6-9, 2009 SatCom Africa 2009 Sandton Convention Center,Johannesberg, South Africa Tel: +27-11-516-4015 E-mail:[email protected] web: http://www.satcomafrica.com/

April 18-23, 2009 NAB 2009 Las Vegas Convention Center, Las Vegas,Nevada, USA Tel: +1 (202) 429-5300 E-mail: [email protected] web:www.nabshow.com

June 2-4, 2009 ISCe 2009 San Diego Marriot Hotel and Marina, SanDiego, California, USA Tel: +1 (562) 901-9191 Fax: +1 (562) 901-9192E-mail: [email protected] web: /www.isce.com

June 16-19, 2009 CommunicAsia 2009 EncompassingBroadcastAsia2009, EnterpriseIT2009, InteractiveDME, Held inconjunction with CG Overdrive 2009, Singapore Expo ConventionCenter, Singapore, Tel: +65- 6233-6638 web: www.communicasia.com

July 27-29, 2009 MultiPlatform Matrix Content Distribution Expo2009 Universal City Hilton, Los Angeles, California USA Tel: +1 (562)901-9191 Fax: +1 (562) 901-9192E-mail: [email protected] web:www.multiplatformmatrix.com

September 7-10, 2009 World Satellite Business Week 2009 Paris,France Tel: +33-(1) 49 23 75 2 4E-mail: [email protected] web: http://www.satellite-business.com

September 10-15, 2009 IBC Conference and Expo 2009 RAIExhibtion Center, Amsterdam, The Netherlands Tel: +44-(0) 20-783-24100 E-mail: [email protected] web: http://www.ibc.org/

October 7-11, 2009 CeBIT Eurasia Bilisim International Trade Fairfor Information Technology, Telecommunications, Software +Services, held in conjunction with CeBIT Broadcast, Cable+SatelliteEurasia International Trade Fair and Conference for Turkey, SouthEast Europe and the Middle East, Istanbul, Turkey Tel: +90 (212) 33469 69 Fax: +90 (212) 334 69 70 E-mail:mailto:[email protected] web:http://www.cebitbilisim.com/index.html and http://www.cebit-bcs.com/en/index.html

October 13-14, 2009 Satcon 2009, Javits Convention Center, New YorkCity, USA, Tel. +1-203-371-6322 E-mail: [email protected]: http://www.satconexpo..com

Cover Story Calendar of Events

The Satellite TechnologyGuide for the 21st Century

by Virgil S. Labradorwith chapter contributionsfrom John M. Puetz, DCPalter and Daniel B. Freyer.

200 pages / 5.5" x 8.5" /Illustrated with photos,tables and diagrams withappendices.

ISBN: 978-1-60530-421-2

Price: US$ 25.99 (includingshipping and handling)

The Satellite TechnologyGuide for the 21st Centuryclearly explains in non-technical terms the basics of satellite communica-tions technology and how it works. This book also provides a historicalbackground of the industry, its current status, market prospects, trendsand the future of satellite communications.

Fully illustrated with graphs and tables, the book contains appendicesincluding a glossary of terms and a list ofindustry resources.

Chapters include: A Brief History of the Sat-ellite Communications Industry; Overviewof the Satellite Communications Industry;The Basics of Satellite Communications; TheSpace Segment; The Ground Segment;Satellite Services; VSATs; Satellites and theInternet; The Future of Satellite Communi-cations.

An indispensable guide to the basics of sat-ellite technology and the global industry. Noother book in the market today provides a

more comprehensive view of satellite technology and the industry in oneeasy-to-read volume at a very low price of only $25.99 including ship-ping and handling.

For more information or to order your copy now,go to: www.satellitemarkets.com/node/34or e-mail: [email protected]

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9Cover Story Market Trends

CommerCommerCommerCommerCommercial Sacial Sacial Sacial Sacial Satellite Industrtellite Industrtellite Industrtellite Industrtellite Industry Set toy Set toy Set toy Set toy Set toGrGrGrGrGrooooow Evw Evw Evw Evw Even in en in en in en in en in TTTTTrrrrroubouboubouboubled Economic led Economic led Economic led Economic led Economic TTTTTimesimesimesimesimes

8

With many industries around the world in the doldrums due to thecurrent economic crisis, NSR’s latest multi-client market researchreport released December 3rd, 2008 entitled the Global

Assessment of Satellite Demand, 5th Edition, projects that the commercialsatellite transponder leasing market should emerge relatively unscathed.This new NSR reportprovides the industry’smost completeexamination ofcommercial satellitesupply and demand inall regions and foreach application overthe next ten years.“It is likely thatcommercial satelliteoperators will feelsome discomfort overthe next 12 to 18months,” according toPatrick French, NSRSenior Analyst and thereport’s author, “but itwill be more on theorder of a few quarters of somewhat slower demand growth compared tothe last few years, rather than outright transponder demand contraction.More importantly, the launch of numerous new satellites in the 2009-2010time period, both strengthening existing orbital locations and opening newslots, should come just in time to address reemerging demand in manysectors as economic conditions improve. This could well lead to a sharpboost in demand in the 2010 to 2011 period.”

Between 2007 and 2017, NSR forecasts that global demand for commercialC- and Ku-band transponders will increase by more than 1,500 36 MHztransponder equivalents, and revenues will grow at the average annualrate of 4.5%. Unsurprisingly, NSR anticipates that the majority oftransponder demand growth in the coming ten years will be generated byvarious video services. In fact, 83% of the newly leased transponders willbe for video distribution, direct-to-home (DTH) and video contribution &occasional use television services.

New NSR Report Projects More than 1,500 NewTransponder Leases in Next Ten Years, and Revenues toHit US$12.9 Billion

Direct-to-home is by far the single most important market for the satelliteindustry, not only because of transponder demand for new DTHplatforms, but because DTH drives competition with cable and IPTVservices and leads them to require new transponder capacity for HDchannels, HITS (headend-in-the-sky) and other SD channelbouquets, as well as news and sports programming in the eternal battleto have the best content to attract and keep subscribers. NSR’s onlyconcern in this area is the extent to which the current economic crisismay lead to DTH platform consolidation. “Some countries have two,three and even five DTH platforms, not even counting cable or IPTVpay-TV services,” stated French. “The failure of a few of these DTHservices might hurt in the short-term but probably is a very healthy

process that will lead to a smaller, strongerset of players in the long-term that arebetter able to honor existing transpondercontract obligations and, better yet, toexpand their service offerings.”On the revenues side of the picture, NSRestimated that the industry generatedUS$8.33 billion in 2007 from commercialC- and Ku-band capacity leasing, and thisshould grow to US$12.90 billion in 2017.While NSR does not expect all aggressivepricing tactics to disappear, it does appearas general rule the industry has learnedthat below cost pricing hurts everyone,and there will be a gradual but definiteincrease in average capacity pricing forthe next several years in most marketsaround the world.

In its 5th Edition, the Global Assessment of Satellite Demand (GASD)study is a multi-client report now available from NSR. The GASD 5thEdition study has become an industry standard for the independentanalysis of drivers and restraints on the commercial satellite capacityleasing market. NSR maintains its rigorous methodology of rebuildingits entire transponder supply and demand forecast for the commercialsatellite market from the ground-up each year to ensure that its forecastprojections capture the latest trends in the market. More than 200separate supply and demand forecasts have been performed in orderto provide one of the most granular and detailed evaluations ofdemand for commercial C-, Ku- and Ka-band satellite transpondercapacity for seven specific satellite applications in twelve distinctregional markets. For additional information on this report, including afull table of contents, list of exhibits and executive summary, please visitwww.nsr.com or call NSR at +1-617-576-5771 .


108Cover StoryFeature

RRRRReaceaceaceaceaching out to the ‘Other 3 Billion’hing out to the ‘Other 3 Billion’hing out to the ‘Other 3 Billion’hing out to the ‘Other 3 Billion’hing out to the ‘Other 3 Billion’

by B.H. SchneidermanEditor, Latin America

In these challenging economic times, it’s encouraging to knowthat there are still visionary companies that haveambitious plans aimed not at the most saturated, advanced countries

but in the underserved developing countries. Denver, CO-based O3bNetworks (registered in St. John, Jersey, Channel Islands) headed byGreg Wyler is one such company. Unlike other companies before thatwere high on ideals and low in practicality, O3b Networks, which standsfor the “Other 3 billion,” seems to know have a sound business plan to

back up their lofty goals.

Make no mistake about it, O3b mayhave altruistic motives in providingbroadband access to to the poorestcountries in Africa, Asia and LatinAmerica, but they are not a non-profitventure but a for-profit, sustainablebusiness, according to their founderand CEO Wyler. O3b Networks isplanning to build an all Ka-band, 16-satellite network in Medium Earth Orbit(MEO) in order to reach the estimated3 billion people in developingcountries that currently do not have

Internet access. It has already contracted the construction of the first eightsatellites with Thales Alenia Space to be launched in 2010 by Boeing’sSea Launch.

O3b’s decision to use MEO satellites goes against the conventionalwisdom that geostationary satellites (GEO) are the most economical way ofdelivering high-capacity satellite trunking services. At present there arethree commercial satellite constellations operating in Low Earth Orbit(LEO), namely, Iridium, Globalstar and Orbcomm that provide only voiceand low speed data communications. O3b believes that the lower latencyvirtually eliminates the delay of standard GEO satellites by reducing theround-trip transmission time from over 1/2 sec to just 1/10 of a sec. Thereduced round-trip transmission time provides a web accessingexperience closer to terrestrial systems such as DSL or fiber.

O3b’s satellites will utilize the Ka-band spectrum, which is 80 % more costeffective than the spectrum used by existing LEO operators (VHF, L-band,

and S-band). Each transponder will carry up to 216 MHz forward/returnchannel, allowing for over 600 Mbps (OC-12) of IP trunking. Althoughadvantaged in many ways, O3b’sdesign approach has two majordisadvantages relative to traditionalLEO constellations. While the Ka-bandspectrum offers improved bandwidthefficiency, it is more susceptible toweather interference and requiressophisticated, large-diameter (three meters or more) tracking antennas totransmit and receive signals from satellites that are steadily moving across thehorizon.

O3b aims to be a carrier’s carrier--delivering low-latency Internetbackhaul at speeds reaching 10 gigabits per second. fortelecommunications operators (telcos) and internet service providers(ISPs) in emerging markets.

The cost of the O3b network including the ground system is estimated tobe over $650 million. But that might be conservative according to somesources with the volatility in satellite manufacturing, launch and insurancecosts. O3b has contracted Gilat as its VSAT equipment provider for theground network. The spacecraft will be using the same basic servicemodule design currently being produced for Globalstar’s replacementconstellation. O3b should benefit from Globalstar’s volume production (48satellites currently under construction), although the satellites are likely tocost 50% more (~$30 million vs. a Globalstar cost of ~$18 million) due toO3b’s unique Ka-band payload design. Finally, O3b’s comparatively lowaltitude and small payload size will enable the company to utilize anynumber of low-cost launch vehicles such as the Kosmos-3M, Dnepr,Pegasus, or Falcon-1.

According to company sources, O3b has raised an initial $60 million frominvestors that include Google Inc., Liberty Global, Allen & Company Inc.and HSBC Principal Investments. Just before press time, O3b alsoannounced that it has signed more than $200 million in customercontracts, after only a few months of announcing their planned system.

The cost of venture targeting the poorest half of the population of the worldgives rise to concerns from financial analysts on the profitability of theventure. The research firm NSR said that “we certainly support, indeedapplaud, O3b’s vision and goals. However, given that the venture isbacked by private enterprise that will have to show “normal” ROIbenchmarks, the timing of such a venture in the midst of economic turmoil

(Continued on page 10)


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http://www.ndsatcom.com


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What led you to the idea of starting O3b Networks and how is this venture different fromothers that aim to serve emerging markets?

Prior to starting O3b Networks, I had built an ISP in Rwanda. It was the first Fiber-to-the-homedevelopment on the African continent. As an ISP, and building world-class last mile infrastructure(gigabit Ethernet FTTH), we quickly found that there was still a huge bottleneck — globalconnectivity. No matter how much fiber, DSL, 3G or WiMAX was deployed locally, you still had thechallenge of connecting to the global fiber infrastructure to ensure global connectivity. Geostationary(GEO) satellites, had too much latency to provide a quality internet connection for web 2.0 andinteractive applications also could not provide the hundreds of megabits per second of bandwidthnecessary. Therefore, African ISPs — who really do a great job with what they have — neededlower cost, low-latency, high speed international access in order to meet the needs of theircustomers.

There was just no way to secure that access. After running a lot of fiber, we realized that fiber alonewas not the answer. Africa is big, very big. It is as large as China, USA, UK, Argentina, WesternEurope and India combined. We realized that trenching hundreds of thousands of kilometers of fiberwas not the answer.

In today’s global economy, Internet access and communications are a fundamental requirement foreconomic growth. The importance of a communications infrastructure transcends the individual at thecomputer. It is really an infrastructure that impacts all aspects of economic growth, from health care toeducation. Take health care, for example, if you want to treat malaria, then you need to supplymalaria medicine to the thousands of health centers in any given country. You need to manageinventories, distribution, and know who is taking what medicine and what the reactions are. All of thisis important, and can only be done efficiently with an efficient communications infrastructure.

With the tightening credit markets, how are you progressing in getting the remainder ofthe estimated $650 million or so that you need to build your network?

O3b Networks serves emerging markets, which have fared well so far in the current financial crisis.Most of these markets operate very conservatively when it comes to debt structures. Therefore,they have not been affected by the credit issues of the developed world.

In general, our markets have GDP growth between 2-10 percent. O3b Networks has the ability tomove its capacity to reach the fastest-growing markets with the most demand. Our markets alsohave the lowest Internet penetration and the fastest growth; Therefore, O3b Networks is a strongglobal investment opportunity which focuses precisely on the markets that are developing. Becauseof this, we have been insulated from the global credit system. Our markets, taken together,represent relative safety compared to the turbulence of the New York markets and the echo impactsworldwide.

With any service that will primarily reach out to countries that are in emerging markets,the question is how will you achieve profitability and how soon?

We are a carrier’s carrier, our customer base is well established operators in the countries we arepursuing. For us to succeed on our objective of allowing everyone to participate in the globalinternet, then-- by definition-- we must have a profitable business model and we are very confidentthat we do.

Interview withInterview withInterview withInterview withInterview with O3bO3bO3bO3bO3bNNNNNetwetwetwetwetworks Forks Forks Forks Forks Founder and CEOounder and CEOounder and CEOounder and CEOounder and CEO

Greg WylerGreg WylerGreg WylerGreg WylerGreg Wyler

may lead to a shift of focus where tappinglucrative developed markets provide the meansby which ROI benchmarks are achieved. ”

One recently failed venture that started with loftygoals of providing satellite radio access todeveloping countries comes to mind--WorldSpace, which declared bankruptcy in late2008. Like what NSR predicted, WorldSpaceaimed initially at developing countries to “bridgethe digital divide” but after financial pressuresmounted, the company had to revise its businessmodel and focus on developed countries whereit did not do the necessary ground work andeventually went belly up.

The carrier’s carrier busines model is a uniqueapproach in that O3b Networks will basically actlike a satellite operator leasing capacity toestablished telcos and service providers, asopposing to providing the service themselves,like WorldSpace did.

Wyler remains very confident in their businessmodel. In an interview (see sidebar) withSatellite Markets and Research, he said “Weare a carrier’s carrier, our customer base is wellestablished operators in the countries we arepursuing. For us to succeed on our objective ofallowing everyone to participate in the globalinternet, then- by definition- we must have aprofitable business model and we are veryconfident that we do.”

There are other challenges that O3B may face.Given that it will focus on developing countries,with varying regulatory regimes, it may have itswork cut out for them in terms of getting thenecessary satellite landing rights and permits forground terminals and other regulatory issues.In this regard, the major satellite operators,Intelsat, SES and Eutelst among others, mayhave a prior advantage since they have beenoperating in these environments for decades.

However, O3b seems intent of making theirventure a success. Which will be a win-win fortheir company and the other 3 billion with nointernet access that they plan to serve.

B.H. Schneiderman is the editor for LatinAmerica of Satellite Markets and Research andis a consultant to satellite and telecommunicationcompanies. He can be reached at:[email protected]


1314

mill

ions

17.32

13.78

Total: 31.1 million

For more Vital Statistics go to www.satellitemarkets.com/node/9

Broadband Internet Connections per 100 Inhabitants ( June 2008)Rank Country Internet Connections

1 Denmark 36.7

2 Netherlands 35.7

3 Norway 33.4

4 Switzerland 32.7

5 Iceland 32.3

6 Sweden 32.3

7 South Korea 31.2

8 Finland 30.7

9 Luxembourg 28.3

10 Canada 27.9

11 United Kingdom 27.6

12 Belgium 26.4

13 France 26.4

14 Germany 26.2

15 United States 25.0

thousands

329,000

309,000

360,000

(source: company sources)

(source: company sources)

Total: 998,000

© 2009 Synthesis Publications LLC

The U.S. ranked 15th in the worldin broadband penetration for threeyears in a row in the annual surveyby the Organization for EconomicDevelopment. This has caused a lot of concern for the incoming administration. President-electObama has made universalbroadband access in the US apriority for his new administration,creating a new position in the USgoverment for a “Chief TechnologyOfficer.”


14Cover Story Stock Quotes/ Satellite Markets Index

Satellite Operators

AsiaSat 1135.HK 7.20 4.61 -16.90 -57.50%Eutelsat Communications ETL.PA 16.92 14.40 - 20.50 -17.54%Hughes Communications Inc. HUGH 15.99 10.00 - 55.99 -71.24%Inmarsat ISAT.L 389.25 300.00 - 585.00 -32.95%SES SES.F 13.65 11.36 - 17.06 -18.82%Satellite and Component Manufacturers

Boeing BA 40.22 36.17 - 88.29 -54.38%COM DEV International Ltd. CDV.TO 3.21 2.21 - 3.95 -18.73%Lockheed Martin Corp. LMT 78.34 67.38 -120.30 -34.84%Loral Space and Communications LORL 14.23 6.02 - 30.52 -53.37%Orbital Sciences Corp. ORB 17.09 14.24 - 27.89 -38.65%

Ground Equipment Manufacturers

C-COM Satellite Systems Inc. CMI.V 0.21 0.15 - 0.51 -58.82%Comtech Telecommunications Corp. CMTL 39.51 37.59 - 45.65 -22.48%CPI International, Inc. CPII 8.45 5.07-16.02 -47.25%EMS Technologies, Inc. ELMG 21.64 16.20 - 31.78 -32.13%Viasat VSAT 20.65 15.15 - 28.07 -26.61%Satellite Service Providers

Gilat Satellite Networks Ltd. GILT 2.85 2.17 -11.20 -74.64%Globecomm Systems Inc. GCOM 5.07 3.96 -11.14 -54.49%Internatinal Datacasting Corp. IDC.TO 29.50 0.15 - 0.70 -57.86%ORBCOMM Inc. ORBC 1.86 1.29 - 6.87 -72.93%Skyterra Communications SKYT.OB 1.70 3.55 - 8.85 -80.79%Consumer Satellite ServicesBritish Sky Broadcasting Group BSY 23.27 19.90 - 47.55 -50.69%The DIRECTV Group DTV 20.30 13.70 - 29.10 -29.90%ECHOSTAR Communications DISH 11.93 8.34 - 36.11 -66.77%Globalstar, Inc. GSAT 0.32 0.15 - 9.25 -96.54%Sirius XM Radio Inc. SIRI 0.12 0.08 - 3.89 -96.90%

Company Name Symbol Price(Jan. 15 ) 52-wk Range % Change from

Year High

The Satellite Markets 25 IndexTM

The Satellite Markets 25 IndexTM is a composite of 25 publicly-traded satellite companies worldwide withfive companies representing each major market segment of the industry: satellite operators; satelliteand component manufacturers; ground equipment manufacturers; satellite service providers andconsumer satellite services. The base data for the Satellite Market Index is January 2, 2008--the first dayof operation for Satellite Market and Research. The Index equals 1,000. The Satellite Market IndexTM

provides an investment benchmark to gauge the overall health of the satellite industry.

© 2009 Satellite Markets and Research, Satellite Executive Briefing and the Satellite Market IndexTM are trademarks of Synthesis Publications LLC. Synthesis PublicationsLLC is the owner of the trademark, service marks and copyrights related to the Index. This newsletter does not constitute an offer of an investment product. SatelliteExecutive Briefing makes no representation regarding the advisability of investing based on the information provided in the Satellite Markets IndexTM. All information isprovided ‘as is’ for information purposes only and is not intenteded for trading purpose or advice. Neither Satellite Executive Briefing nor any related party is liable for anyinformational error, incompleteness or for any actions taken based on information contained herein.

Comparison of Indexes Index value Percentage Change (Jan 15’09) 2-Weeks Ago 1-Year AgoSatellite Markets Index 782.00 8.70% -22.00%

S & P 500 843.74 9.45% 38.90%


15Cover StoryExecutive View

16

InterInterInterInterIntervievievievieview with Drw with Drw with Drw with Drw with Dr. Ilhami A. Ilhami A. Ilhami A. Ilhami A. Ilhami Ayyyyygungungungungun

CEO, Space Systems InternationalCEO, Space Systems InternationalCEO, Space Systems InternationalCEO, Space Systems InternationalCEO, Space Systems International

For the benefit of our readers, can you brieflydescribe what the Eurasian market consistsof?

Eurasia is the region where the continents ofAsia and Europe meets. In the satellite market,when we speak of the Eurasian region this isgenerally comprised of the parts of EasternEurope, the Caucuses, parts of present-dayRussia, all of Central Asia and parts of theMiddle East with Turkey in the center of thisregion of 500 million people.

The countries of this region, until about 15years ago, was mostly under the influence orpart of the former Soviet Union. So all thecommunications infrastructure, includingsatellites, was developed by the Soviets. Andsince the collapse of the Soviet Union, thisregion has experienced an economic takeoffwhich required the upgrading anddevelopment of the communicationsinfrastructure in these countries. Thetelecommunications and satellite infrastructurehad to be developed practically from avacuum. In the last ten years the developmentof the infrastructure was concentrated onterrestrial networks, but now is the time todevelop the satellite infrastructure as well.

Apart from the infrastructure, what otheropportunities are there for foreign satellitecompanies in this region?

The global satellite operators are already here,but I think there is still an opportunity for some ofthe conutries in this region to develop their ownsatellites. In the ground segment, there is greatneed for satellite ground equipment and forsatellite broadcasting equipment. There is a bigdemand here for the latest broadcastingtechnology as this region is a major consumer ofprogramming. This region is not very wellserved by the satellite equipment manufacturers.Since this region is newly emerging and not wellknown in the rest of the world, especially the USmanufacturers, perceive this region to be a “noman’s land.” But this perception is not met by thereality. The reality is there are lots ofopportunities in this market.

What about the business and regulatoryenvironment in this region?

Turkey is far ahead in comparison to the othercountries in this region in terms of liberalizing andderegulating its economy. Turkey has privatizedits telecommunications operators including TurkTelecom with the excetion fo the satellite operator,Turksat, which is still government-owned. Theother countries are fast adopting the liberalization

of their economies and integration into the worldmarket. All the international banks are operatinghere and I don’t think there are any barriers toentry for foreign companies in this region.

Looks like there is a lot of opportunities here,there is an open and liberal businessenvironment and even financial resources, butI have to ask since we are now heading into aglobal recession, what impact would thedownturn have on the satellite market in thisregion?

If we are talking of the satellite business here inthis region, you are talking about entertainmentand television,. Maybe there won’t be newinvestments or new channels launching in thisregion, but the existing ones will continue.That’s why I don’t think from the perspective ofsatellite telivision and broadcasting that therewill be a downturn in this region.

To view a podcast of the complete interview with Dr.Aygun and other interviews conducted at the

Broadcast, Cable and Satellite Eurasia show, go towww.satellitemarkets.com/media/videolist.php

At the Broadcast, Cable and Satellite Eurasia 2008 show in Istanbul, Turkey,Satellite Markets and Research Editor-in-Chief Virgil Labrador spoke with Dr. Ilhami Aygun, CEO of Space Systems International and Chairman of

the Turkish TelecommunicationsManufacturers and Users Association whichgoes by its Turkish acronym, TUYAD. Dr. Aygun was previously CEO ofEurasiasat—a joint-venture with Alcatel and Turk Telecom and was the founderof Turksat, the Turkish national satellite operator. Excerpts of the interview:


168Cover StoryShow Report

Broadcast, Cable andBroadcast, Cable andBroadcast, Cable andBroadcast, Cable andBroadcast, Cable and

Satellite Eurasia 2008Satellite Eurasia 2008Satellite Eurasia 2008Satellite Eurasia 2008Satellite Eurasia 2008Istanbul, TurkeyNovember 20-23, 2008

by Virgil Labrador, Editor-in-Chief

If you think you’ve explored every possible market forsatellite services and products, think again. One of theindustry’s best kept secrets is a major trade show that

attracts almost three times the number of attendees as theannual Satellite show in Washington, D.C. The Broadcast, Cableand Satellite Eurasia Expo and Conference held annually inNovermber in Istanbul,Turkey attracted 14,000attendees in 2007 and511 exhibitingcompanies from 44countries. Theexhibition andconference’s main drawis the emerging marketof over 500 millionpeople in the Eurasianregion where Turkey isa major center.

“Turkey’s dynamicgrowth requires foreigninvestment and themarket is still wideopen for newcomers,so this is the best time to get into this emerging market,” saidDennis Smith, Managing Director of Hanover Fairs-Turkey, theshow’s organizer. HF-Turkey is a subsidiary of the Germany-based event organizing company CeBit, which organizes thelagest exhibition in the world in Hanover, Germany of the samename. In addition to BCS Eurasia, HF-Turkey also organizes andIT event, CeBit Bilisim, also in Istanbul every October thatattracts a staggering over 140,000 attendees.

I was one of those pleasantly surprised to see first-hand thisbustling fair and find very few particpants from Europe andalmost none from North America. What’s even more surpising isthis show has going on for the past 11 years. This year, for the

very first time, they held an international conference componentto the show with featured speakers that included FerdinandKayser, CEO of SES Astra and David Rehr, President of theNational Association of Broadcasters (NAB) from the US.

When asked during a sessionof the Internatinal Broadcast,Cable and Satellite Conferenceon why the NAB’s Presidentchose to go to Turkey to speakon the Digital TV transition inthe US, Rehr said that there aremany exciting developments inthe Turkish and Eurasianmarket that the US can learnfrom. He added that theEurasian market is growing andthere are many opportunitiesfor North American companiesin the region.

While participation fromEuropean satellite companies in the show is relatively good, Smithlaments that participation from North American companies can beimproved. Of the 511 exhibiting companies only 11 are from NorthAmerica. Smith would like to see that number change. Well, theorganizers may have jus the right formula to attract moreparticipants from other regions to this show. In 2009, the wyll co-locate the Cebit Bilisim IT show and the Broadcast, Cable andStellite Eurasia show to be held on Ocotber 7-11 2009 with anexpected turnout of over 150,000 trade visitors. Now that’s anincentive to come to Istanbul inext year.

For more information on the Broadcast, Cable and Satellite Eurasiashow go to www.cebit-bcs.com


17

Cover StoryCompany Profile

18

Application Technology Strategy Inc.

Application Technology Strategy, Inc., (ATSI), is the satellite consulting firm founded by Bruce Elbert, leading satelliteexpert and consultant, technologist, educator and author of standard industry books. We emphasize the how of developingsatellite systems in FSS, MSS and BSS application areas, optimizing technical performance, reducing costs, staying

on schedule, and improving staff performance. This involves space and ground segmentdesign, program management, satellite link and propagation engineering, staff selectionand training, cost reduction and performance optimization, selection of the best spaceand ground resources, contract negotiation, due diligence and expert testimony.

ATSI is committed to the success of new and existing networks, application systemsand organizations that employ broadband technologies, satellite and wirelesscommunications, and Information Technology.

Our experience in satellite communications, both in the space segment and the ground,allows us to better assist clients that are considering how this medium can address earthly needs. Likewise, we fullyunderstand the breadth and depth of the telecommunications infrastructure on the ground, including current and evolvingstandards such as wireless and cellular and the suppliers that offer the most desirable resources. We are experts inpreparing program plans and cost-reduction analyses that provide a foundation for sound decisions. Other expertiseincludes RF design and radio wave propagation, satellite design and performance evaluation, and ground segmentsystems engineering.

We offer our consulting and staff development services to organizations in the public and private sectors. With over 30years experience in the global fixed and mobile telecommunications and IT environment, we know how to look atneeds and problems and resolve them by working in close collaboration with the client.

Bruce Elbert has been a technical expert in legal matters such as litigation and patents by performing research, expertreport preparation and defense, and testimony at trial.

ATSI provides clients with technical and management consulting services and knowledge that promote success intelecommunications and IT. Through our extensive experience in all fixed and mobile applications of satellitecommunications and the systems required for their implementation, we have assisted major corporations and governmentagencies. Satellite application areas include video and audio broadcasting, data networks involving small terminals(VSATs), and backhaul links, and the latest generation of broadband and mobile satellite communications systems. Weunderstand the ins and outs of defining the architecture, RF and baseband design, and construction program, properlyimplementing a new communications service, fixing what may be broken, staying on schedule and within budget, andinserting advanced technology into an existing system. In large enterprises where we contribute, major software andnetwork systems must be introduced without loss of business performance. We have had to learn in formal situationsand on our own, perfecting our ability to organize, design, communicate and transfer understanding.

We are committed to the success of the most important application technology strategy - yours!For more information go to www.applicationstrategy.com or call +1 805-531-9692 e-mail: [email protected]

(Advertorial)

http://www.applicationstrategy.com

Documents

Vol. 2 No.1 January 1-15, 2009 - Satellite Markets · 2014-09-04 · Chandrayaan-1 lunar orbiter Oct. 22. (ISRO photo) from the private sector. Space entrepreneur Peter Diamandis,