CEOs from a cross-section of the satellite industry — fixed satellite services, imaging, and satellite ground equipment segments — echoed the generally upbeat financial outlook for satellite players heard in other sessions at SATELLITE 2009. Several general themes recurred throughout the discussion, such as the value of long-term relationships with clients, as all of the CEOs spoke directly about or addressed the possibility of difficulties in the days ahead, a sobering reminder of the economic climate.
    Rob Bednarek, president and CEO of SES Americom-New Skies, noted that the operator is closely intertwined in many other companies’ businesses as part of an overall connectivity solution, which tends to reduce some market volatility.
    He stressed long-term, sound business plans, highlighting that money is very expensive right now, so you must insure you have the margins on any new ventures. Although there are going to be some tougher financial times, Bednarek was confident that opportunities will continue to present themselves.
    Eric Beranger, CEO of EADS Astrium, echoed many of Bednarek’s themes, stressing his company’s strategy of building strong relationships with clients. Astrium has not had to call on the capital market due to shareholder relationships.
    Astrium takes customer requirements and factors in commercial risks, stressing that when done properly, the process requires a lot of vigor. This in turn creates credibility. “In a selective market, credibility is an absolute must,” he said.
    Peter Jackson, CEO of AsiaSat, spoke of recent troubled times in the Asian market, offering a perspective of a satellite operator which has recent experience weathering tough economic times. Jackson reminded everyone that Asia went through a regional financial crisis and then the region was rocked again by the SARS health crisis.
    This time, he warned, the crisis is global. “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, stressed the importance of helping clients find new and innovative ways to lower overall costs of ownership during difficult times in the market. She also noted that the company continues to fund new initiatives but stressed they must be strong business cases. Most of iDirect’s growth in the future will come from outside the United States, she said.
    When queried about the biggest threat to her market segment, Cotton replied that if finances start to tighten up and capital budgets get cut, they may have to offer ways for customers to finance their network hardware.
    Mark Dankberg, chairman and CEO of ViaSat, was 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. ViaSat has spent a lot of time educating customers and investors on the project, he said.
    Matt O’Connell, president and CEO of satellite imagery provider GeoEye, said the majority of it business is pre-sold and the company is fairly well insulated from unfriendly capital markets, but he did note that the growth rate might slow in the future.
    He stressed the importance of listening to clients and that companies should start selling what customers need rather than what the customers have to sell. O’Connell stressed that good business plans are customer-focused not “thing-focused,” such as a piece of hardware or technology.
    When asked what he perceived to be the biggest threat to his market segment, O’Connell felt it 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.