The World Teleport Association (WTA) compiled data submitted by teleport operating companies around the world for the association’s 2011 Top Operator rankings, and determined that the group created a combined annual revenue pool of $12.8 billion, with an annual growth rate of 7 percent.
   The WTA 2011 Top Operator report provided a positive snapshot of the entire sector from independent operators large and small delivering service around the world. The report also shared data on facilities, services, markets, pricing and business results. Of the $12.8 billion in revenue from the top operators, WTA said that $9.7 billion came from respondents that had consistently submitted data to the organization for the past five years.
   “These companies posted a compound annual growth rate (CAGR) of 17.2 percent from 2007 to 2009, with total revenues rising $1.3b billion over the period,” the WTA wrote in the report. “But, CAGR fell to 6.3 percent for the period from 2009 to 2011, when sales grew only $579 million. For the five-year period, the group grew total revenues by $1.9 billion for a CAGR of 7.6 percent – a still-impressive performance during the worst financial crisis since the Great Depression.”
   The volume of business for the operator segment has increased significantly. Across all market segments, more than 60 percent of teleport operators reported that the volume of business increased from 2010 to 2011. Only 10 percent to 18 percent of those polled reported declines in total volume as measured by revenue.
   The WTA report also showed recent shifts in pricing. According to the data, about 25 percent of independent teleport operators reported the ability to raise prices on their core services in 2011. This percentage was up slightly from 2010. Approximately 54 percent reported no price change for core services since 2010 to the WTA. More than 41 percent reported being able to increase prices for the resale of satellite capacity, WTA said, adding that only 18 percent said the same for terrestrial capacity.
   “An evaluation of responses to our pricing question since 2005 reveals that 2007 and 2008 were bullish years for the teleport sector, when 40 percent or more of respondents reported being able to raise prices for core services,” the report said. “Since then, year-over-year pricing changes have resumed more normal levels, with between 20 percent and 30 percent reporting price increases. Between 10 percent and 20 percent reported price declines and the majority reported stable prices.”
   One of the more interesting trends WTA identified was that terrestrial and satellite transmission pricing was moving in opposite directions – an observation that has been noted by several OilComm attendees. “The pricing of satellite capacity for resale has followed a similar trend to that of core teleport services but has been more prone to the upside and more volatile,” WTA said. “By contrast, more teleport operators continue to report price declines for terrestrial capacity than price increases, which makes that capacity more competitive year after year.”
   Analysis firm Visiongain also released a report Nov. 6 on the maritime satellite communications market, which it believes will reach a value of $755.8 million in 2012 alone. Visiongain marine satellite communications analysts noted that the maritime industry is often believed to be inherently slow at adopting new technologies, but has a unique driver and threat for every industry, which tries to create space in the maritime sector. “The fierce competition in the marine satellite communications market due to VSAT makes the market very dynamic, providing considerable opportunities in its various sub-markets.”