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Mobile satellite services still look promising

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Nov. 14, 2008

According to a new report from research and consulting firm NSR, the last 6 weeks of financial market turmoil and global uncertainty dosen't appear to have slowed down the mobile satellite services field, at least not yet.

Claude Rousseau, analyst at NSR says “the period from today and up to 2018 will rival the bustling days of the late 1990s for the mobile satellite services industry (MSS) with the launch of up to 160 MSS satellites.”

He also noted “that total doesn't even count the number of FSS transponders in C, KU and X-band that will be also available to the mobile satellite market at that time.”

Despite increasing competition and economic concerns, NSR predicts the MSS market will reach more than 18 million in-service units and generate retail revenue of $17.1 billion between 2006 and 2017.

But the positive launch and supply trends may be hampered by turbulence in global financial and economics, which could affect demand, said Rousseau. Competition has increased in satellite data services, which will compare favorably with terrestrial wireless products, said the report.

For how, MSS operators are dealing with tight credit markets. NSR added that many are acquiring pieces of their distribution network.

NSR also predicted that operator consolidation is likely in the near future.

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Source: NSR.




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