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Governments Accounted For Over Half Of New Satellite Business In 2005

For both government and commercial markets, satellite capacity sales represent the largest area of anticipated new business.
by Staff Writers
Los Angeles CA (SPX) Jun 19, 2006
Hannover Fairs USA and Futron Corporation have announced results of their annual satellite industry survey conducted during the International Satellite Communications exchange (ISCe 2006) that concluded last week in San Diego, Calif.

Attendees at the record-breaking fifth annual ISCe 2006 were asked their opinions on current and future business opportunities and trends in the government and commercial satellite industry sectors.

Among the key findings of the study:

- Thirty-two percent of respondents reported that government agencies accounted for more than half of their new business in 2005, with 65 percent stating that, among government agencies, the Department of Defense was the primary source of their new business last year.

- Fifty-four percent are targeting new products and services for the DoD during the next two to three years, with the Department of Homeland Security, Other Public Safety and Other Civil Government Agencies (e.g., State Department, Department of Agriculture) each being targeted by 20-25 percent of respondents.

- For both government and commercial markets, satellite capacity sales represent the largest area of anticipated new business. More than 40 percent of ISCe attendees anticipate their biggest growth will come in this area during the next two to three years.

- A slightly smaller percentage (25-30) forecast their greatest areas of new revenue to be new hybrid network services hardware sales. New software products and services are anticipated to lead new revenues for less than 10 percent of respondents for both government and commercial markets.

- Respondents reported that their commercial revenues in 2005 were fairly evenly divided among video distribution, private data network, and mobile services. They anticipate that this split will continue over the next two to three years, with mobile services growing slightly faster than the other two markets.

The HFUSA/Futron study was tabulated from written responses of conference attendees, composed primarily of executives representing the world's leading satellite operators, manufacturers and service providers. Total attendance at ISCe 2006 was 600, a 15 percent increase over the 2005 conference.

Overall, respondents in the HFUSA/Futron survey indicated they believe key sectors for industry growth will continue to be satellite capacity sales to DoD and commercial customers, with mobile services growing faster than either video or private network business.

A small percentage of current business is derived from hybrid network solutions, but more than half of respondents say the ability to procure such solutions from a single provider is very important.

"This is the fifth year Futron has conducted this industry survey in cooperation with ISCe," said Andrea Maleter, Technical Director, Futron Corp. "We find this onsite conference polling tool invaluable as a means of hearing firsthand from industry leaders of their experiences and views on what directions they anticipate the market going."

"ISCe affords an ideal opportunity for top satellite industry executives and government leaders to preview new technologies and opportunities," said David Bross, ISCe Conference Chairman.

"ISCe 2006 brought together 600 industry and government leaders who shared vital information that will contribute to the ongoing development of innovative products and opportunities in both commercial and government enterprise."

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Satellite Services Demand The Future in High Def
Bethesda MD (SPX) Jun 16, 2006
The satellite industry, like telecommunications overall, has gone from boom to bust to reconciliation. It is now in the midst of an unusually complex period, in which large operators are consolidating while new, innovative operators are starting up - or restarting - with plans to create hybrid networks and services.

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