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Modest revenue growth in satellite slowdown

August 13, 2014 10.20 Europe/London By Julian Clover

Dubna Satellite Communications CenterThe Fixed Services Satellite (FSS) sector generated $12.2 billion in revenues during 2012, an increase of just two per cent.

Euroconsult says 60% of satellite operators experienced a slowdown in 2013 after many years of growth. Ten operators reported a revenue decrease in 2013, compared to only six operators in 2012.

“In order to re-energize revenue growth, satellite operators are increasingly exploring new revenue streams; in recent years the focus has primarily been on launching new satellites over emerging markets and investments in HTS systems or payloads,” said Nathan de Ruiter, Senior Consultant at Euroconsult and Editor of new report Company Profiles – FSS Operators: The Complete Analysis.

“Eleven FSS operators offered HTS capacity to the market in 2013, while nine operators will launch their first HTS satellite or payload within the next four years. Further, we have seen a growing number of regional operators such as ABS, APT Satellite, Arabsat, RSCC and Gazprom Satellite Systems with international expansion plans by launching new satellites outside of their region of origin.”

Limited opportunities mean operators are pursuing strategic partnerships. These include the joint use of orbital positions used by Arabsat/Es’hailSat and bulk capacity lease deals demonstrated by Eutelsat/Nilesat.

According to Euroconsult the average FSS operator in 2013 had $237 million in revenue; 186 transponders leased of which 55% are used for video applications; 238 regular transponders and 16 Gbps of HTS capacity available for lease; 952 TV channels and 4 DTH pay-TV platforms broadcast over satellites; seven satellites in orbit with an average fleet age of six years; and two satellites under construction.

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Filed Under: Newsline, Satellite Tagged With: EuroConsult Edited: 13 August 2014 10:21

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About Julian Clover

Julian Clover is a Media and Technology journalist based in Cambridge, UK. He works in online and printed media. Julian is also a voice on local radio. You can talk to Julian on Twitter @julianclover, on Facebook or by email at jclover@broadbandtvnews.com.

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