Global Economic Crisis Has Little Effect on Satellite Capacity Leasing Market

Capacity Leasing to Generate 5.4% Average Annual Revenue Gains and Additional $6.6 Billion in Coming Ten Years


CAMBRIDGE, MA--(Marketwire - November 9, 2010) -  According to NSR's just released Global Assessment of Satellite Supply and Demand, 7th Edition study, the worst global economic crisis since The Great Depression did little to slow down the worldwide commercial satellite capacity leasing market. NSR's study estimates the industry picked up over $400 million in new leasing revenues in 2009, reaching $9.7 billion as of the end of the year. Further, results so far in 2010 indicate the sector could add another $500 million or more this year alone and increase total commercial satellite capacity leasing revenues by $6.6 billion over the ten-year period between 2009 and 2019.

"On average, the world's commercial satellite operators are seeing annual revenue increases on the order of 5.4% driven both by new capacity leasing and increased capacity pricing," said the study's author and NSR Senior Analyst, Patrick M. French. "Most important to industry revenue growth is the diverse set of C-, Ku-, and Ka-band transponder demand drivers plus NSR's wholesale capacity leasing assessment for the High Throughput Satellite segment," according to French.

NSR expects a net increase in capacity leasing revenues from the direct-to-home (DTH) sector alone to amount to nearly $1.6 billion by 2019 with a further $2.0 billion or more coming from capacity leasing into the video distribution and video contribution & OUTV markets. Turning to data services, NSR forecasts continued steady gains in the broadband services sector with growth in broadband VSAT networking pushing the increased lease of Ku-band capacity and satellite broadband Internet access driving HTS capacity leasing. The combined broadband services segment could add almost $2.2 billion in new revenues to the industry by 2019, plus other additional revenues will come from segments like mobility and backhaul.

In the prior version of this study, NSR introduced to the industry for the first time a complete and detailed analysis of demand for High Throughput Satellite (HTS) capacity in parallel to the traditional C-band, Ku-band and widebeam Ka-band markets. Continuing pioneering work in the sector, NSR has initiated for the first time in this GASSD 7th Edition a detailed analysis of expected demand uptake for full-time 3D channels within the video distribution and DTH markets. NSR examines the drivers and restraints impacting the launch of 3D channels in each regional market and supplements its traditional SD and HD channel forecasts with specific 3D channel carriage predictions in order to assess satellite capacity demand leasing potential from the emerging 3D segment.

About the Report
The Global Assessment of Satellite Supply & Demand, 7th Edition study is a multi-client report now available from NSR. The GASSD 7th Edition study is an industry standard for the independent analysis of drivers and restraints on the commercial satellite capacity leasing market. NSR maintains its rigorous methodology of rebuilding from the ground up each year its entire transponder and capacity supply and demand forecast for the commercial satellite market to ensure that its forecast projections capture the latest trends in the market. More than 300 separate supply and demand forecasts have been performed in order to provide one of the most granular and detailed evaluations of demand for commercial FSS/BSS C-, Ku- and Ka-band satellite transponder capacity as well as leased commercial HTS capacity for seven specific satellite applications in twelve distinct regional markets. For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com or call NSR at 617-576-5771.

About NSR
NSR is an international market research and consulting firm specializing in satellite and wireless technology and applications. NSR's primary areas of expertise include emerging technology, IP applications, and broadcast services. With extensive expertise in all regions and a number of broadband sectors, NSR is a leading provider of in-depth market insight and analyses.