The commercial satellite industry can expect a short-term slow-down in...
The commercial satellite industry can expect a short-term slow-down in government procurement as a result of budget constraints, but increasing demand for capacity and bandwidth will create growth in the market, said Claude Rousseau, an analyst for Northern Sky Research.…
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Commercial satellite “is still a part of the solution for government markets” and there are emerging opportunities in Asia and Africa, he said Wednesday during a webinar. There must be a realization “that times are tough but it will be short-term,” he said. The troop drawdown in Iraq and Afghanistan is affecting the bulk leasing of Ku-band capacity, land mobile communications-on-the-move sales, and satellite handheld equipment, he said. “Government use will be more specific and refined.” The industry can expect continued use of Ku-band capacity for unmanned aerial vehicle users, he said. If there were a transition to Ka band, “it would require retrofitting the aircraft, which is a costly endeavor,” he said. The market requirement for satellite is moving from narrowband to broadband, he said. But, there will continue to be significant need for narrowband systems in the military, he said. Commercial satellite companies will continue to obtain contracts from the government, but the rate will be slower than in previous years, he said: “People are waiting for sequestration” and how it will impact actual revenues for commercial satellite companies. Growth for commercial services also will likely be driven by the so-called “pivot to Asia” strategy, an effort by the Obama administration to shift military focus from the Middle East to the Pacific region, Rousseau said. Parts of Africa, like Mali, also are emerging as “hot spots,” he said. The French government spent 100 million euros for military missions since the war in Mali began this year, Rousseau said: “They may need more support from commercial satellite.”