The satellite industry since WRC-2000

The satellite industry continues to experience growth in spite of set-backs in the development of Global Mobile Personal Communication Services by Satellite. For some time now, the demand for spectrum/orbit usage has been increasing for virtually all space communication services — but most notably for fixed-satellite, broadcasting-satellite and mobile-satellite services. Market research* on satellite business estimates that between 175 and 201 satellites will be launched over the period 2001–2010 to meet demand, with a market value of USD 21.9–26.5 billion. However, in the period since the World Radiocommunication Conference in 2000 (WRC-2000), the general economic conditions and the mixed fortunes of telecommunication carriers and the industry as a whole have been very visible in satellite services development.

Fixed-satellite services

The year 2002 is said to have marked the second year of negative growth in revenues for FSS operators. With consolidated revenue estimated at USD 6.6 billion in 2002, the 36 FSS satellite operators (see Table 1) are said to have experienced a year of negative growth (–4.4 per cent). This contrasts with the record growth achieved in 2000 when revenue topped USD 7 billion. While the year 2000 was boosted by exceptional events, in 2001 and 2002 the industry had to cope with the fall of the telecommunications market. Despite the decline in revenues, the FSS industry is expected to remain healthy, with possible recovery in 2003.

The world availability of satellite transponders is reported to have grown strongly in 2002, with 950 new transponders available on 20 newly launched satellites, contrasting with only 400 new transponders on 10 satellites in 2001. In Russia, for example, two domestic satellite operators, RSCC and Gascom, are in the process of renewing and enlarging their fleets. In 2000, RSCC decided to launch a new series of six “Express” satellites, which will expand its fleet from 95 to around 250 transponders. While the majority of this capacity will be used by Russian customers, the excess will be sold to customers in Asia, especially in China. Gascom, related to gas company Gazprom, has two more “Yamal” satellites under construction. Gazprom is a major customer of Gascom, utilizing around 40 per cent of the satellite transponder capacity. Other customers include Russian network television, government and telecommunication companies. Much of RSCC’s capacity is used for VSAT networks.

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	Table 1 – The 36 fixed-satellite service (FSS) operators
	Operator	Satellite system	Service coverage
			Trans-oceanic	Continental
	APT Satellite	Apstar
	ASCO	Arabsat
	Asia Satellite	Asiasat
	Binariang	Measat
	China Satcom	Chinastar, Chinasat
	Egyptian Satellite	Nilesat
	Eurasiasat	Eurasiasat
	EuropeStar	EuropeStar
	Eutelsat	Eutelsat 2, Hot Bird, W, Seasat
	France Telecom	Telecom 2
	Gascom	Yamal
	Hispasat	Hispasat
	Insat	Insat
	Intelsat	Intelsat
	JSAT	JCSat, Nstar
	Korea Telecom	Koreasat
	Loral Skynet	Telstar
	Mabuhay	Agila
	Nahuelsat	Nahuel
	New Skies Satellites	NSS
	NSAB	Sirius
	RSCC	Gorizont, Express
	Satelindo	Palapa
	Satelites Mexicanos	Satmex, Solidaridad
	SES Global	Astra, AMC
	Shin Satellite	Thaicom
	SingTel Optus	ST, Optus
	Sino Satellite	Sinosat
	SCC	Superbird
	Spacecom	Amos
	Star One	Brazilsat
	Telkom Indonesia	Telkom
	PanAmSat	Galaxy, PAS
	Telenor	Thor
	Telesat Canada	Anik, Nimiq
	Turk Telekom	Turksat
	© Sourced from Euroconsult 2003.

Mobile telephony: still a niche market for satellite

While mobile-satellite services (MSS) have experienced difficult times in recent years, in 2002 the MSS operators continued to make progress, but with very different business models. For example, Inmarsat, signed up its 250 000 customers and launched its interim high-speed (144 kbit/s) service ahead of the launch of “BGAN” in 2004, which is expected to provide a mobile 400 kbit/s service. Iridium Satellite, which rose from the bankruptcy of Iridium LLC, renewed its contract with a partner, securing its future at least for the near term. The regional MSS operators, ACeS in Asia and Thuraya in the Middle East are reassessing their business models. ACeS, while not abandoning the mobile service, is looking to use its capacity to provide fixed rural telephony where demand is high and unmet.

Satellite television broadcasting
Growth continues in revenues, television channels and subscribers

With an estimated 50 per cent of the transponders in orbit broadcasting television channels, broadcasters remain the largest customers for the FSS industry, providing over 60 per cent of its revenues.

Despite a difficult economy, the direct-to-home (DTH) satellite television broadcasting industry continued to grow in 2002. Market research shows that some six million additional television households subscribed to satellite pay-TV during 2002, bringing the total of satellite television subscribers to over 52 million households at year-end. The top three satellite broadcasters were Echostar (1.3 million net new subscribers) and DirecTV (1 million new subscribers) in the United States, and BSkyB in the United Kingdom (800 000 new subscribers). During the same year, SkyPerfecTV in Japan passed the 3-million subscriber mark (400 000 new subscribers) and Canal Satellite in France the 2-million mark (150 000 new subscribers). Revenues of satellite pay-TV increased from USD 22 billion in 2001 to around 25.5 billion in 2002 for the 55 DTH multi-channel pay-TV broadcasters.

According to industry forecasts, the cable and satellite industry in Asia and the Pacific is set to grow from the current 157 million subscribers to over 228 million in the next eight years, recording a 45 per cent growth rate from 2002 to 2010. China and India are expected to continue to be the key markets in 2010, with 128 million subscribers in China and 53.35 million in India. **

Some 1150 new satellite television channels were launched worldwide in 2002, bringing the net total to about 10 500 channels currently broadcast by satellite. In a difficult advertising market, growth was largely sustained by multi-channel pay-TV offerings with about 750 new television channels broadcast, and a further 400 new free-to-air and individual premium channels. Growth is expected to continue in 2003 with good medium-term prospects sustained by consolidation in the DTH satellite broadcasting industry.

Further developments to be considered at WRC-03

Radio frequencies and the geostationary satellite orbit are limited natural resources, which must be used rationally, efficiently and economically. The International Telecommunication Union (ITU) upholds the right of all countries to equitable access to satellite orbit space. International agreement on the way the various bands of the radio-frequency spectrum are used is essential to the smooth operation of a growing range of critical applications, from aircraft and maritime navigation to wireless telephony, satellite broadcasting and scientific research. On this score, the ITU Radiocommunication Sector (ITU–R) and in particular world radiocommunication conferences play a vital role in regularly updating the basis for allocation and use of the radio-frequency spectrum and satellite orbits.

Spectrum allocation and sharing will be a challenge for the upcoming World Radiocommunication Conference (WRC-03), to be held in Geneva from 9 June to 4 July 2003. WRC is the forum that defines and updates the Radio Regulations — the binding international treaty that governs the allocation and use of the radio-frequency spectrum by a plethora of different services worldwide.

Private sector plans to deploy new non- geostationary satellite constellations to deliver voice telephony and broadband data services, along with a new wave of traditional “geostationary” satellite deployments geared to meeting steadily rising demand for Pay-TV, future interactive entertainment services, high-speed Internet and corporate networking, all necessitate the development of technical sharing criteria and arrangements to ensure that neither type of satellite system would cause harmful interference to the smooth functioning of the other. Such ongoing developments have required detailed consideration of new or revised technical solutions. For example, additional spectrum allocations made by WRC-97 to planned non-geostationary fixed-satellite systems (NGSO FSS) were subject to strict power limits in order to protect GSO and other services already operating in those bands.

WRC-03 will be key in updating the regulatory framework, as well as the sharing scenarios and methodologies in order to ensure a fair and efficient use of the radio-frequency spectrum to enable the various industry segments to deploy new services or expand existing ones to generate capacity for new services and technologies. In this regard, the work carried out by ITU–R study groups, the Special Committee on Regulatory and Procedural Matters and the Conference Preparatory Committee in preparation for WRC-03 makes possible the necessary technical and operational bases on which to take sound decisions.