Latest News

The National Bureau of Economic Research, a private, non-profit research organization that calls the beginning and end of recessions, declared in September that the recession that gripped the globe throughout 2008 and much of 2009 had ended.

The bureau says the Great Recession began in December 2007 and ended in June 2009, making it the longest of any recession since World War II. The simplified declaration that the recession was over was greeted with much derision, but in its announcement, the bureau said that it “did not conclude that economic conditions since that month have been favorable or that the economy has returned to operating at normal capacity. Rather, the committee determined only that the recession ended and a recovery began in that month.”

I include myself among the group that would look cynically at a declaration by economists that the recession was over. But after spending 10 days in Europe discussing the future of the satellite sector with CEOs, CFOs, engineers and sales people, I’m less cynical. Many companies at IBC2010 expressed optimism that areas outside of broadcasting will see some business growth in the coming months.

The business communications market looks to be a good target for satellite companies looking for business, as corporate communications networks are being expanded in terms of both capabilities and geography. While the world’s businesses are forced to extend their operations to more and more remote locations, the demand for assured and reliable communications — audio and video — as well as for guaranteed delivery of important data, will be good news for the satellite sector.

The needs of some of the markets, such as the oil and gas sector, also are changing. If companies want to attract high-quality staff, having access to broadband connectivity and even HD video services on oil rigs is key to maintaining staff. The days of staff wanting to spend days at a time aboard an oil rig with little access to communications is rapidly becoming a thing of the past. This is creating new demands for communications and video solutions, even in the most remote of locations.

Service providers and system integrators are seeing demand for new communications offerings, especially simple solutions that provide reliable services to remote areas or help consolidate control and monitoring of operations. The only warning is that the supply chain was cut back so much during the economic slowdown that the most basic components of some of the systems and subsystems may be in short supply. One equipment manufacturer said they are having trouble meeting their orders while waiting for parts from its suppliers — and the prices for those parts have risen nearly 50 percent in the past few years.

However, the market views this as a minor problem. Enterprise customers are primed to begin spending again, and the satellite communications sector can return to facing other issues, such as battling terrestrial providers for shares of the returning revenue stream.

Regionally, companies are looking for growth around the globe, with markets in Africa and Latin America drawing the most interest, while Eastern Europe and Asia also look to have potential in the coming years. The only market that doesn’t seem to excite too many — except for the broadband satellite players — is North America, so maybe those economists are still a little off.

Get the latest Via Satellite news!

Subscribe Now