World Commercial Fixed Service Satellite Operators Markets: Competitive Analysis

Operating in an industry currently fraught with risks of consolidation in the midst of a global telecom slump, satellite operators are facing a flat, if not declining, demand for their capacities. The intensely competitive nature of the market is affecting profitability. Other issues for operators include problems with launch vehicles, rising insurance rates, stagnant/low prices for satellite capacity, and most importantly, the uncertainty of how the marketplace will look after consolidation.

This Frost & Sullivan study provides an in-depth analysis of more than 20 commercial fixed-service satellite (FSS) operators that collectively hold 80 percent of the total available satellite capacity. It examines the challenges facing the overall satellite operators' market and provides a view of the regional operating conditions. The study compares operators with their peers, analyzes capacities and revenues, assesses each operator's competitive position and explores possible strategies for growth.

Alliances and Mergers to Drive Market

With revenues stagnating, further growth has to come from acquisitions and the reduction of operational expenses. The trend seems strongly toward expansion through partial, not full, stakes in other operators. For instance, Loral Skynet leases and co-owns a satellite with APT Sat, which, in turn, has SingTel Optus as its largest shareholder.

According to the author of the study, "There are very few independent operators and almost everybody is connected to at least one other operator, directly or through semi-formal alliances. The market will soon see formalization of loose alliances and subsidiary holdings that are already in place." As larger operators consolidate, para-regional operators will also try to establish a better footing in their respective regions and improve their competitive position and efficiencies.

Government/Military Usage and Integration with Terrestrial Networks Offer Immediate Opportunities

Fiber has taken over telecom traffic, DTH operators are consolidating in the largest markets, weak economies are slowing down the launch of new TV channels, and Internet traffic growth is stabilizing. The strongest demand for satellite capacity is now likely to come from government and military users. The inherent advantages of satellite systems such as cost-effective, wide-area coverage, secure and hard-to-target networks, and point-to-multipoint applications without additional costs for new users, make it ideal for this segment.

Many FSS operators are also combating competition from fiber by positioning themselves as integrated-solution providers, partnering with fiber companies to offer hybrid solutions, using the strengths of the two technologies to increase market penetration.

1. World Commercial Fixed Service Satellite Operators Markets, Executive Summary

A. Satellite Operators Market

1. Introduction

2. Competitive Structure of the Market

B. Research Findings & Market Directions

1. Research Findings

2. Future Market Direction

C. Market Engineering Awards

1. Awards Introduction

2. Awards

2. World Commercial Fixed Service Satellite Operators Markets, Satellite Operators Market

A. Satellite Operators Market

1. Overview and Definitions

2. Market Challenges

B. Market Structure

1. Market Engineering Measurement

2. Competitive Structure

C. Drivers and Restraints

1. Market Drivers

2. Market Restraints

D. Regional Operating Conditions

1. Introduction

2. Europe Middle East and Africa (EMEA)

3. Asia (ASIA)

4. North America (NAM)

5. Latin America (LATAM)

E. Market Analysis and Findings

1. Market Share Analysis

2. Revenue Analysis

3. Research Findings

3. World Commercial Fixed Service Satellite Operators Markets, Competitive Analysis

A. Satellite Operators Competitive Analysis

1. Introduction

2. Market History

B. Market Overview

1. Global Operators

2. Para-Regional Operators

3. Regional Operators

4. Future Market Direction

C. Intelsat Ltd.

1. Company History and Ownership

2. Fleet Details and Capacity

3. Operations

4. Competitive Position

5. What if Eutelsat?

D. SES Global S.A.

1. Overview

2. SES Astra S.A.

3. SES Americom Inc.

4. AsiaSat Ltd.

5. Americom Asia Pacific LLC. (AAP)

6. Nordic Satellite A.B. (NSAB)

7. Nahuelsat S.A.

8. Star One S.A.

E. PanAmSat Corp.

1. Company History and Ownership

2. Fleet Details

3. Operations

4. Competitive Position

5. Merger Speculations

F. New Skies Satellites N.V.

1. Company History and Ownership

2. Fleet Details

3. Operations

4. Competitive Position

5. Merger Speculations

G. Eutelsat S.A.

1. Company History and Ownership

2. Fleet Details

3. Operations

4. Competitive Position

5. Merger Speculations

H. Loral Global Alliance

1. Overview

2. Loral Skynet

3. Satelites Mexicanos S.A. de C.V. (SatMex)

4. Europe*Star Ltd.

5. Loral Skynet do Brasil

6. Competitive Position (Loral Global Alliance)

I. Hispasat S.A.

1. Company History and Ownership

2. Fleet Details and Revenues

3. Competitive Position

J. JSAT Corp.

1. Company History and Fleet Details

2. Operations

3. Competitive Position

K. Telesat Inc.

1. Company History and Fleet Details

2. Operations

3. Competitive Position

L. APT Satellite Holdings Ltd. (APT Sat)

1. Company History and Fleet Details

2. Operations

3. Competitive Position

M. SingTel/Optus Pty. Ltd. (Optus)

1. Company History and Fleet Details

2. Operations

3. Competitive Position

N. Shin Satellite Public Company Ltd. (ShinSat)

1. Company History and Fleet Details

2. iPSTAR

3. Competitive Position

4. World Commercial Fixed Service Satellite Operators Markets, Market Engineering Awards

A. Frost & Sullivan's 2003 Market Engineering Awards

1. Introduction

2. Market Engineering Awards

B. Competitive Strategy Award

1. Award Description and Methodology

2. Award Winner

C. Growth Strategy Marketing Engineering Award

1. Award Description and Methodology

2. Award Winner

D. Vertical Integration Award

1. Award Description and Methodology

2. Award Winner