[Satellite News 10-31-08] Al Yah Satellite Communications Co. (Yahsat) is the latest satellite operator to believe there potentially is strong demand for satellite broadband services in the consumer market as well as the enterprise and government market.
    Yahsat announced Oct. 18 that it will launch a satellite broadband service, dubbed YahClick, that will be offered in many countries in the Middle East, North Africa, sub-Saharan Africa and Southwest Asia. Yahsat plans to launch a pair of communications satellites to provide commercial and government services throughout those regions. Yahsat 1A is scheduled for launch in the fourth quarter of 2010, with Yahsat 1B, which will host the YahClick service, to follow in mid-2011.
     “We think the end user market has been underserved, probably not because other operators did not want to target this area, but we believe we have the technology and approach to serve it better,” Jassem Al Zaabi, Yahsat’s CEO, told Satellite News. “It is the time to make it easier and more affordable. It is the time to go to end users with a service that was previously only provided to enterprises. We believe the demand is there. We have conducted strong market research. From our side, the demand from end users will be very strong. We can’t wait to see these communities to be connected. We are looking forward to having a strong network of service providers who will help make this service a success.”
    The markets most likely to embrace the service immediately are , Nigeria, South Africa and Kenya, said Al Zaabi. “From our perspective, these are all very important markets. We believe the demand is very strong there and demand will only grow at a pace that satellite providers can cater for.”
    Jawad Abbassi, founder of Middle East-based media consultancy Arab Advisors, believes it makes sense for Yahsat to move into satellite broadband market in the  Middle East. “think this is a good strategy for Yahsat, as there is demand for satellite based services in the region, and there is not much overcapacity and supply,” He said. “So demand is feeding supply here. I think other satellite operators will target the consumer market also and the best approach is to target different segments of the market.”
    Abbassi believes the country dynamics for satellite broadband are favorable. “We think satellite-based broadband in the Arab world will be successful for a number of reasons. Firstly, the vast areas of territory in the region. For example, you have Saudi Arabia, where you have the oil industry and the marine industry, where they cannot connect to terrestrial in an effective manner,” he said. “In case of natural disasters and emergencies, satellite will provide the redundancy needed. Thirdly, there is also the issue of censorship in many countries, particularly in a country like Saudi Arabia, where the terrestrial service is censored, and the satellite service is not censored.”
    Al Zaabi is encouraged about the potential for YahClick based on the gains made by Hughes Network Systems and WildBlue in the United States. “have seen very good demand. From our side, we have already seen a very strong initial demand from markets as well as service providers. We think the demand already exists. There has always been a high demand for broadband. It has been more a question of availability and cost-effectiveness,” he said.
    While Yahsat will not launch services until 2011, Al Zaabi already expect others to enter into this market in the Middle East. “don’t expect to be alone in the market in the long run, but we believe we will be pioneers in the market, and we would like to stay ahead, not only by providing the service first but also being strong in areas such as customer care,” he said. “We believe there will be some competition. We think the service will prove successful, and as a result competition will come, and we will be able to deal with it. The customer will benefit as a result.”