[Satellite TODAY 04-22-10] CEOs from a cross-section of the satellite industry — fixed satellite services, imaging, and satellite ground equipment segments — are stressing the value of long-term customer relationships as the global economy recovers from one of the worst recessions in histor.
    EADS Astrium CEO Eric Beranger said his company’s strategy of building strong relationships with clients has prevented his company from relying on the capital market “Meeting customer requirements while commercial risks, when done properly, requires a lot of vigor. This in turn creates credibility. In a selective market, credibility is an absolute must,” said Beranger.
    Rob Bednarek, president and CEO of SES Americom-New Skies, said the operator is closely intertwined in many other companies’ businesses as part of an overall connectivity solution, which tends to reduce some market volatility. Although he expects tougher financial times for some of his customers, Bednarek is confident that opportunities will continue to present themselves. “Long-term, sound business plans, highlight the fact that money is very expensive right now. So, you must insure you have the margins on any new ventures,” said Bednarek.
    Peter Jackson, CEO of AsiaSat, points to recent troubled times in the Asian market, offering the satellite operator’s changed perspective. Jackson said Asia went through a regional financial crisis and then the region was rocked again by the SARS health crisis, highlighting the global aspects of the economic crisis. “Customers don’t just happen,” Jackson said. “Growth is going to be affected next year and the one after that. When customers have problems, we encourage them to talk to us to see if we can work something out. It is a painful process but without us, they don’t have a business.”
    Mary Cotton, president and CEO of iDirect, said her company has stressed the importance of helping clients find new and innovative ways to lower overall costs of ownership during difficult times in the market by continuing to fund new initiatives but stressed they must be strong business cases. “If finances start to tighten up and capital budgets get cut, we may have to offer ways for customers to finance their network hardware,” she said.
    Mark Dankberg, chairman and CEO of ViaSat, is more upbeat about the future, buoyed in part by the progress of the company’s Ka-band satellite project. “Several years ago we were asked ‘Why are you doing this?’ But now people see the value proposition. No one has followed us yet and we have a big lead,” Dankberg said.
    Matt O’Connell, president and CEO of satellite imagery provider GeoEye, said that while the majority of its business is pre-sold and the company is fairly well insulated from unfriendly capital markets, but noted that the growth rate might slow in the future.
    “Companies should start selling what customers need rather than what the customers have to sell. Good business plans are customer-focused not ‘thing-focused,’ such as a piece of hardware or technology,” said O’Connell.
     O’Connell added that the biggest threat to his market segment is looming international competition with 11 different countries planning to enter the imaging market. O’Connell also expressed concern over the challenge of finding enough bright, young engineers. GeoEye gives away a lot of imaging to college programs, thereby exposing lots of young engineers to the company. “There is definitely a ‘cool factor’ to it and it helps us recruit against some bigger companies,” he said.