The data communications market via satellite in the Middle East is shrinking, according to one executive we spoke to at IBC today. This executive, who works for a telecoms service provider serving the market, says the Middle East data communications market for satellite is now under real pressure and that this market is dramatically decreasing as the result of the onset of fiber and terrestrial networks in the region.

   What is perhaps interesting here is that this company will now look to Africa as the next opportunity to provide data communications, and even then, rather than just provide solutions based on satellite, it will look to provide solutions where satellite may only represent part of the equation, rather than the whole. More revenue will now come from Africa rather than the Middle East, a changing dynamic.

   This is a graphic example of how the satellite sector cannot live in a bubble. The threat from fiber and terrestrial networks is very real, and while investments in some parts of the world may have been slow, where fiber is being deployed it has the potential to squeeze out satellite.

   What this shows is that the satellite industry constantly needs to adapt and evolve and, if necessary, potentially look to new markets if opportunities are being squeezed elsewhere. Having this conversation today made me realize, if I didn’t already, that the satellite industry cannot rest on its laurels, and even though most satellite businesses have performed well during the trying economic times, it does not mean they are immune to very visible threats. The need to constantly evolve and even find new markets, as others start to slightly disappear, will be vital. Keeping one step ahead will ensure the future of many companies in this sector. This was most definitely a major lesson learned today.