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Global Economic Crisis has Little Effect on Satellite Capacity Leasing Market

November 9, 2010


According to NSR’s just released Global Assessment of Satellite Supply and Demand, 7th Edition study, the worst global economic crisis since The Great Depression did little to slow down the worldwide commercial satellite capacity leasing market. NSR's study estimates the industry picked up over $400 million in new leasing revenues in 2009, reaching US$9.7 billion as of the end of the year. Further, results so far in 2010 indicate the sector could add another US$500 million or more this year alone and increase total commercial satellite capacity leasing revenues by US$6.6 billion over the ten-year period between 2009 and 2019.


"On average, the world's commercial satellite operators are seeing annual revenue increases on the order of 5.4% driven both by new capacity leasing and increased capacity pricing", said the study's author and NSR Senior Analyst, Patrick M. French. "Most important to industry revenue growth is the diverse set of C-, Ku-, and Ka-band transponder demand drivers plus NSR's wholesale capacity leasing assessment for the High Throughput Satellite segment," according to French.


NSR expects a net increase in capacity leasing revenues from the direct-to-home (DTH) sector alone to amount to nearly US$1.6 billion by 2019 with a further US$2.0 billion or more coming from capacity leasing into the video distribution and video contribution & OUTV markets. Turning to data services, NSR forecasts continued steady gains in the broadband services sector with growth in broadband VSAT networking pushing the increased lease of Ku-band capacity and satellite broadband Internet access driving HTS capacity leasing. The combined broadband services segment could add almost US$2.2 billion in new revenues to the industry by 2019, plus other additional revenues will come from segments like mobility and backhaul.


In the prior version of this study, NSR introduced to the industry for the first time a complete and detailed analysis of demand for High Throughput Satellite (HTS) capacity in parallel to the traditional C-band, Ku-band and widebeam Ka-band markets. Continuing pioneering work in the sector, NSR has initiated for the first time in this GASSD 7th Edition a detailed analysis of expected demand uptake for full-time 3D channels within the video distribution and DTH markets. NSR examines the drivers and restraints impacting the launch of 3D channels in each regional market and supplements its traditional SD and HD channel forecasts with specific 3D channel carriage predictions in order to assess satellite capacity demand leasing potential from the emerging 3D segment.