NEW YORK–Market understanding and flexibility will be the keys to success for next-generation broadband satellite systems.

“We are getting close to realizing the next generation of broadband systems,” said Eugene Cacciamani, senior vice president at Hughes Network Systems [GMH], here at the 5th Annual Space and Satellite Finance Conference here, sponsored by IIR.

And for these next-generation broadband satellites to be successful, satellite companies need to understand the markets they serve and be flexible enough to adjust to changing market conditions, Cacciamani said.

To get to that point, companies must understand what satellites will be most cost effective in delivering these services. And right now, geostationary satellites seem to lead the way according to research conducted by GE American Communications Inc. [GE].

“GEO satellites are the most cost-competitive, point-to-multipoint solution when you need to deliver content to more than 30 points,” said Emmitt Hume, senior vice president of marketing at GE Americom. “LEOs and MEOs are not cost- competitive in any service, including rural telephony.”