[Satellite Today Web Exclusive – 6-9-08] While well established as one of the leading operators in Asia, AsiaSat hopes to develop its business in the region still further following the scheduled launch of AsiaSat 5 in 2009.
    AsiaSat CEO Peter Jackson talks about the dynamics for satellite in the region and why he expects AsiaSat to perform strongly in the region over the next few years.

Via Satellite: What are the demands for satellite capacity in Asia? What do you see as the major growth markets for AsiaSat going forward?

Jackson: Amidst the region’s improved economies, we see gradual recovery of the transponder market. Demand is particularly strong from the broadcast sector as a result of the increased use of satellite to distribute content to the growing number of pay-TV platforms in Asia. These new platforms, whether they are DTH, cable, IPTV or mobile, all need additional content and better viewing quality by using digital or HDTV to differentiate themselves from competing players.
    We also see the growing demand for capacity for occasional services, stimulated by international sporting activities. Our occasional capacity booked last year increased by more than 35 percent and we see this trend continuing. Longer term, we see increased take up of HDTV and this will drive demand for capacity. In addition, governments are favouring the introduction of competition in all sectors of society and this includes the provision of television services so we see an increasing number of distribution platforms that, as we explained earlier, all require new content to compete.

Via Satellite: Is a glut in capacity still putting pressure on prices in the region?

Jackson: Despite the revived demand, most Asian markets remain extremely competitive. Satellite operators offering lower quality capacity in terms of power, coverage or neighborhood are encountering more severe pricing pressure. But for AsiaSat, we see our C-band capacity pricing improving because supply of quality capacity for regional TV distribution is scarce. Ku-band pricing varies from market to market, and we see stronger pricing pressure in places where a monopoly exists. But lease rates in certain markets have firmed up, particularly in countries where domestic supply cannot fulfill demand.

Via Satellite: What are your plans to bring new, high-powered next generation satellites to the region?

Jackson: The main capital expenditure in the short term is for building AsiaSat 5, which will replace AsiaSat 2 at the orbital location of 100.5 degrees East in 2009. This new satellite is designed to offer a more powerful C-band pan-Asian coverage than that of AsiaSat 2. There will also be an additional Ku-band South Asia beam and an in-orbit steerable beam, aiming to offer the capacity to markets with stronger demands for DTH and broadband services. We are also investing in expanding our facilities at Tai Po Earth Station to enable us to offer more diverse and comprehensive services for our customers while we are also looking at suitable acquisition opportunities in the region. 

Via Satellite: How do you view the opportunities for Ka-Band in the region?

Jackson: I would not expect Ka-band will get very popular in Asia in the short term, as it is even more vulnerable to rain fade than Ku-band. It has inherent limitations to operate effectively in areas of Asia where there is high rainfall. However, it is a new frequency that operators can move into when they run out of Ku-band frequency.

Via Satellite: Will operators look to team up in order to boost coverage and offer better solutions to customers?

Jackson: Consolidation is occurring in the satellite market globally as operators choose to achieve growth either through acquisition or partnerships. While our expertise is in Asia, we are free to partner with satellite operators in other regions when our customers are looking for a cross-region or global solution, and in that situation we can partner with the provider of the best capacity in that particular area for the customer’s specific application. We are also partnering platform operators and teleports around the world to offer one-stop transmission solutions, providing facilities such as MCPC platforms, uplink and fiber backhaul, which are expanding our service portfolio for those customers who need additional services.
 

Via Satellite: Have the dynamics for fixed satellite services changed in recent years in the region?

Jackson: Over the past years, we have seen some exciting developments in Asia’s satellite broadcasting business. These include the change of the television format from standard definition to high definition and the implementation of new DTH, IPTV and mobile TV platforms, resulting from the increased consumer demand and the deregulation introduced by some Asian governments to the media sector that opens up the market for more competition.

Via Satellite: How do you assess the prospects for DTH across the region?

Jackson: We see continued progress in the development of new DTH services across Asia. Cambodia is a very recent example who has introduced DTH across the country to compete with the existing cable service which is geographically restrained. We believe the momentum to offer country wide multi-channel television service will continue in other South Asian markets. 

Via Satellite: How do you see the satellite landscape developing in Asia and how will AsiaSat fit in?

Jackson: The transponder market has improved, with firmer pricing for quality C-band capacity and where there is a shortage of domestic Ku-band supply. But we see competition will increase with the new supply of national satellites in next 18 months. Amid this competitive market, we see governments not only introducing deregulation but also lifting restrictions on foreign satellite operators, thus creating market opportunities for AsiaSat. We will continue to achieve growth by exploiting the advantages of satellites over terrestrial services, especially for television distribution and private telecom networks, and our own advantage of our regional presence and of being Asia’s market leader in offering value, good coordination and Asian access to satellite users.