A new satellite market study (Handbook of Satellite Services in Europe, Microcom Systems Pounds 285) suggests the recent problems affecting Iridium and ICO Global Communications will have a short-term effect on the market, and will in themselves begin to generate interest from users. However, the report’s author Michael Armstrong-Smith, said the problems will continue to affect investment in new projects, both LEO and GEO based. "The industry is suffering now but will recover," he said, adding that most analysts now accept that Iridium in particular will need to look again at its marketing plans. "They targeted the wrong individuals, and their units were too expensive."

He also issued a warning about the GEO broadcast market. "Investment in broadband satellites, of both types, is already damaged and might remain ultra-cautious for some time to come," Armstrong-Smith said. "Demand for broadcast satellite capacity continues to grow steadily, but there are still high risks for many European digital bouquet suppliers," he said, citing Germany’s problems in getting a viable digital platform off the ground. "The satellite broadcast market is not as stable as some might think," said the report.