This year the satellite sector has gone through many changes. EchoStar acquired Hughes, Astrium agreed to acquire Vizada and deal making was abundant, involving SES and SpaceX as well as Intelsat and MacDonald, Dettwiler and Associates to name just a few. Here, six CEOs and one deputy CEO of major operators around the world discuss the year that was 2011 for the satellite sector.
It has been another strong year for the satellite industry, with operators around the globe posting positive numbers as the demand for capacity shows no signs of decreasing.
In this Via Satellite roundtable, senior executives from seven major satellite operators discuss the highlights, surprises and key trends to emerge in the satellite sector in 2011. Taking part are Tareq Al Hosani, deputy CEO, Yahsat; Khalid Balkheyour, CEO, Arabsat; Michel de Rosen, CEO, Eutelsat; Matt Desch, CEO, Iridium; David McGlade, CEO, Intelsat; Pablo Tognetti, CEO, Arsat; and William Wade, CEO, AsiaSat.
VIA SATELLITE: If you could name one surprise that occurred in 2011, what would it be?
Al Hosani: I would say the main surprise in 2011 was the amount paid at the recent auction for Brazilian orbital slots. The highest bidder, Echostar/Hughes paid more than $110 million for just two slots. This accentuates two interesting factors impacting the industry: orbital slots are clearly a major asset and emerging markets are expected to continue to drive significant growth in the DTH sector.
Balkheyour: The unsuccessful selling of Telesat and the EchoStar/Hughes deal is as interesting as it is surprising because of the new dynamic it is bringing into the market place.
Desch: At Iridium, we rely on our ecosystem of partners and their expertise to grow our reach into different markets and industries, so it’s been really interesting watching other companies take a completely opposite approach and use a ‘go-it-alone’ strategy by consolidating key distribution partners. That’s a lonely road.
McGlade: I would say the surprise for me is the incredibly strong demand for bandwidth across the globe that we continue to see. In particular, we have witnessed strong momentum with our media business, which has grown very well. We have seen strong demand coming out of Russia and India, which we have worked hard to meet. In India for example, we sold an entire beam on our Intelsat 17 satellite for existing and new customers for television distribution. In Russia, we are seeing strong demand, not only from DTH programmers like Orion Express, but for other services like cellular backhaul.
Tognetti: It would probably be the agreement between Intelsat and MDA on ‘in-orbit’ fueling. It is a solution that looks like a dream for satellite operators.
Wade: There has been talk for some time about consolidation among smaller operators in the Asian satellite market, however we haven’t yet seen it happen. Instead, there has been an increase in partnerships and cooperation among satellite operators. This has been seen in condo arrangements, joint slot development and marketing agreements between competitors. This cooperation could in part be due to the recent credit crisis that has restricted funding for expansion forcing operators to look for creative solutions to exploit resources and expand their businesses.
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