Euroconsult Announces 9.5 percent Growth in Satellite by hmv13501


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                                                           Joy Carey, Euroconsult
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For immediate release

            Euroconsult announces 9.5% growth in satellite market revenues,
                             reaching $8.9 billion last year
              Satellite operators in good position to resist to the economic downturn

Paris, September 08, 2008 – Euroconsult, the leading international research and analyst firm
specialized in the satellite and digital broadcasting sectors, announced today that growth in the
fixed satellite market has maintained its healthy pace, driven in particular by digital entertainment
and emerging digital markets. Accelerated deployments of corporate networks, considerable needs
for military communications and broadband access uptake have also contributed to growth.

According to Euroconsult’s recently-issued report “World Satellite Communications & Broadcasting
Markets Survey, Market Forecasts to 2017” the fixed satellite sector grew in terms of both
transponder demand (+8%) and overall revenues (+9.5%) with emerging satellite markets
continuing to play an important role in this development.

“Demand for satellite capacity for digital TV broadcasting accelerated further still last year, due to
the addition of both standard and high definition channels,” said Pacôme Revillon, Managing
Director at Euroconsult. “Capacity usage for TV services increased by 13%, with over 21,000
channels now broadcast by satellite,” he continued. “Another important trend is new growth for
telecom services, with sustained demand for corporate networks, government communications and
cellular backhaul pushing the market.”

Increasing capacity requirements and several satellite launch failures in the last three years have
led to capacity shortages in certain areas. In markets such as the Middle East and Africa, the lack
of capacity has resulted in sharp price increases for satellite capacity. In most other regions an
overall trend towards higher fill rates has supported an improvement in operators’ profit margins
and at least a stabilization of capacity prices.

According to the Euroconsult report, which breaks the world down into twelve regions, growth in
transponder demand in nine of the twelve regions was at more than 5% in 2007, with double digit
growth rates in Russia & Central Asia (+20%), South Asia (+20%),Central Europe (+20%) and Sub
Saharan Africa (+19%).

Regional operators (ie. operators excluding SES, Intelsat, Eutelsat and Telesat) -- with their strong
market positions and customer relationships -- represent an increasing challenge for global
operators. While regional operators represented 31% of total market revenues in 2007, they
generated 37% of net revenue growth for the industry. In several regions operators have
implemented ambitious procurement strategies in order to expand their satellite fleets and reach
critical size.

Another consequence of growth in emerging markets is the appearance of new satellite systems
jointly backed by public and private funds. Encouraged by the opportunities offered in these
markets, new satellite operators have stepped into the market in the Middle East, Asia, Europe and
Latin America. Their first satellites should be in orbit in the next three years.

The consumer broadband access by satellite market reached nearly 1 million subscribers at the
end of last year, thanks in part to the availability of dedicated multi-spotbeam capacity. While
increasing competition in the US market is expected to support growth in the short term, the shape
of the market is expected to greatly evolve within the next three years.

Projects of Ka-band satellite payloads flourished in 2007, and new systems are expected to
become operational by 2011 in North America, Europe, the Middle East and North Africa at the
very least. Despite challenges that satellite services will face, including the need to rollout efficient
distribution networks, broadband access by satellite is seen as an attractive market, representing
close to 9 million subscribers by 2017. Capacity requirements for those subscribers and for
corporate networks which will be increasingly served by the same systems could require as many
as fifteen satellites.

Euroconsult expects the market value of capacity used for the traditional FSS market to reach
almost $12 billion in 2017 with Europe remaining the largest market at $2.9 billion in annual
revenues. The addition of wholesale revenues from emerging systems dedicated to satellite
consumer broadband access would increase the global market value to $14.4 billion by 2017.
Industry consolidation, which will continue, will be offset by the emergence of new regional satellite
systems backed by either private or public investors. According to Euroconsult, growth is expected
in all world regions in the next ten years, except possibly in North East Asian due to lower demand
for telecom services. Average growth of approximately 5% is expected In the next five years, after
which a progressive slowdown may be observed in several regions due to the end of analog
transmissions, increasing terrestrial competition and a potential new consolidation phase in the
burgeoning digital TV market.

Report Profile
World Satellite Communications & Broadcasting Markets Survey, Ten Year Outlook, is now
in its 15th edition. This report is the definitive work analyzing the current state and future prospects
of the FSS industry, and serves as an essential business planning tool for industry actors. The
report includes analysis of all fixed satellite communications applications, an in-depth strategic
review of satellite operators’ business models and financial performance; and a 12-region
breakdown of the world including transponder demand trends and ten year forecasts by application
and by region. The report also looks at transponder pricing trends, supply and demand match by
region and frequency band, and operators’ market share by region and by application.

About Euroconsult
Euroconsult is the leading international research and analyst firm specialized in satellite applications, communications,
and digital broadcasting. Euroconsult develops comprehensive research reports and forecasts; provides strategic
consulting and analysis; produces world summits; and offers customized training. With 25 years of experience and more
than 350 satellite-related consulting assignments, Euroconsult is a worldwide reference. Euroconsult has over 560
clients in 50 countries, including leaders throughout the satellite value chain: satellite operators and service providers;
satellite manufacturers and launch service providers; equipment providers and integrators; space institutions; media and
broadcasting companies; and banks and investors. For more information visit


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