[Satellite News 07-29-09] Despite heavy mid-year losses reported by some satellite companies, industry analysts continue to present good news for the industry, as a report from Euroconsult, released July 28, claims that the fixed satellite market has grown to its highest levels in a decade.
    The report, “Satellite Communications & Broadcasting Markets Survey, Forecasts to 2018,” shows a 9 percent overall growth in fixed satellite services (FSS) transponder demand and a 10.7 percent growth in revenue this year. “While a slowdown is expected as a consequence of the global economic downturn, growth should remain solid in 2009, potentially at approximately 7 percent and could still reach 5 percent in 2010, depending on the depth and length of the economic crisis,” Euroconsult CEO Pacôme Revillon said in a statement.
    Euroconsult said emerging digital markets, where competition between satellite operators and terrestrial solutions is expected to increase in the coming years, primarily drives the expected growth. Future competitive environment and trends in capacity prices largely will be defined by the number of operators in service, local regulations limiting market access, procurement decisions for new satellites and the emergence of local leading operators in most regions, the report said. 
    Average fill rates for commercially available satellite capacity have been following a four-year increase trend and stand at 74 percent. Euroconsult said that figure is likely to increase by the end of 2009.
    Revillion said that a high level of commercial broadcast, government and network service activity supports Euroconsult’s claims. “Last year, 18 new satellite pay-TV platforms were launched for a total of 109 platforms now in service. Over 24,000 TV channels are now broadcast by satellite, with more than 2,900 TV channels added last year. Transponder demand also remained strong for communication services, particularly corporate networks, government communications and cellular backhaul,” he said.
If the sector continues to follow trends, Euroconsult expects the FSS market to earn approximately $13.4 billion in 2018.
    The report also shines positive light on the consumer broadband-access-by-satellite market, with worldwide subscribers reaching the1.2 million mark — a 30 percent growth — primarily in the United States and Asia, from this time in 2008. Euroconsult attributed the growth to the availability of dedicated broadband service satellites equipped with Ka-band payload projects that are about to take off. “Beyond consumer access, those systems are expected to be increasingly used to serve the enterprise as well as potentially other market segments,” the report said.
     Euroconsult’s projections for the broadband satellite market are confident, with 10.5 million subscribers expected by 2018. The report said that strong distribution networks in fragmented markets, such as Europe, will be key factors in whether or not the broadband satellite industry meets expectations.