The satellite communications sector’s belief that it would be mostly protected from the effects global economic slowdown seemed to be shaken in the first and second quarters of 2009, as many companies cautiously lowered expectations to account for slower sales. However, the most recent round of quarterly reports revealed strong growth across a vast majority of the industry, providing a positive shot in the arm and boosting year-end projections above their original marks. Even analysts are on board with the optimism.

While a September NSR report was based on 2008 numbers, the satellite sector, boosted by recent gains, has maintained an overall strong performance through the first nine months of 2009. The NSR report continued a string of positive research results released by the firm this year, and the bullish belief in the satellite sector looks to be coming true.

As expected, the largest satellite operators produced the long-term contracts and sustained demand for communications services that led the way for the industry this quarter. Intelsat posted 2009 third quarter revenues of $617.9 million, up from $598.5 million in 2008. Transponder service revenues, due primarily to an increase in revenue from network services customers and renewals in the Latin American, Caribbean, European, African and Middle East regions. The managed services business increased revenues due to business and service expansion in trunking, private line and GXS broadband solutions in Africa and the Middle East.

Eutelsat Communications saw an increase in revenues to 253 million euros ($373.67 million), up from 226.7 million euros ($334.82 million) in the same period a year ago.

Revenue growth was reported across all segments, with video applications, data and value added services, and multi-usage services up sharply.

The successful third quarter also is projected to sustain down the line. Inmarsat posted growth in all of its mobile satellite services markets in the 2009 third quarter, generating a nearly 9 percent revenue increase over 2008. Hughes Communications added 17,000 net subscribers in its 2009 third quarter results, a 49 percent increase over the previous year, and subscriber growth was complemented by a 19 percent increase in services revenues over 2008.

Smaller companies and manufacturers also enjoyed a third-quarter boost. Norsat revenues increased for the fifth consecutive financial period. While its microwave and satellite business units were the company’s strongest performers, the company said it now will focus on building its new maritime, wireless network and Norsat Capital businesses.

NSR did warn that the industry is not yet completely out of rough economic waters, as some risk still exists because satellite capacity leasing, historically, is a trailing indicator of economic strength. However, growth in other segments like backhaul or government leasing, likely see a spike in demand in 2010 to 2011 as new capacity becomes available and the improving business climate leads to investment for future growth.