Increasing Demand for Video Services Ensures Growth of Commercial Geostationary Transponder Markets in EMEA

Business Wire, Dec 10, 2007

LONDON -- The explosion of video applications and the consequent need for higher bandwidth to distribute them are driving growth in the commercial satellite transponder market. The ever-increasing spread of ethnic channels, as well as the switch to high definition (HD) technology, which has significantly influenced markets in Europe, the Middle East and Africa (EMEA), drives the growing share of the video segment in the market.

New analysis from Frost & Sullivan (http://www.space.frost.com), Commercial Geostationary Transponder Markets for Europe, the Middle East and Africa, finds that market earned revenues of $2,696 million in 2006 and estimates this to reach $2,951 million in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Commercial Geostationary Transponder Markets for EMEA, then send an e-mail to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska@frost.com, with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

In 2006, 51.8 percent of the total demand for transponder capacity in the EMEA market was attributed to the video services segment, direct-to-home/ direct broadcast satellite (DTH/DBS) and video services, as well as corporate network applications (CNA), which experienced the most significant boost. This trend will continue to dominate the market throughout the forecast period (2003-2011).

"Overall transponder demand is increasing in Eastern Europe and sub-Saharan Africa due to the increasing buying power in these regions," notes Frost & Sullivan Research Analyst Natalie Bentz. "Moreover, the fact that point-to-multipoint applications are most efficiently provided using satellites is further strengthening growth in the commercial geostationary transponder markets in EMEA."

However, market penetration faces high competition from terrestrial wireline and wireless technologies very well developed in most parts of EMEA. Further, advancements in compression technologies pose a threat to the satellite segment and decrease the usage of satellite transponder capacity.

Nonetheless, despite the strong competition from terrestrial solutions, which may offer better alternatives sometimes, satellite communications has its own niche market. Moreover, the growing demand for video applications can help increase the market penetration rate and hence, the revenues.

In the face of intense competition, satellite service providers must develop new strategies to overcome inherent limitations in satellite technology by forming alliances with existing operators and developing new applications in emerging services.

"As video and DTH/DBS services are expected to be the applications generating the majority of revenues throughout the forecast period (2007-2011), operators must dedicate their resources to meet the demands of these promising markets to ensure success," remarks Bentz. "Hence, their ability to understand these trends and develop strategies to take advantage of them will determine their profitability in the market."

Commercial Geostationary Transponder Markets for Europe, the Middle East and Africa is part of the Space and Communications Growth Partnership Service program, which also includes research in the following markets: Commercial Geostationary Satellite Transponder Markets for Asia Pacific and Europe, the Middle East and Africa. All research services included in subscriptions provide detailed market opportunities and industry trends, following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan's Growth Partnerships, visit http://www.frost.com.

Commercial Geostationary Transponder Markets for Europe, the Middle East and Africa

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