Commercial In-Orbit Activity
Even though some of the Fixed Satellite Service (FSS) operators, a traditional source of industry strength, turned in an unexciting financial performance sheet due to overcapacity in key regions, they did not let that stall their ambitions with application offerings and growing hybrid services in 2003. Some applications indeed show promise for increased FSS activity. With Wildblue still slated for launch and operation, broadband remains on the application list. Ethnic programming and High Definition Television (HDTV) also hold business growth possibilities for the space segment providers. The major global FSS operators--Intelsat, Eutelsat, SES Global, Loral Skynet, New Skies and Panamsat-- operate nearly 45 percent of the commercial satellite activity Via Satellite tracks and are bullishly increasing their broadband and broadcasting play.
And as far as these FSS executives are concerned, none of them are planning on diminishing their percentage. This message echoed during the SATELLITE 2004 show when these leaders denounced any notion of future consolidation among their respective fleets.
"What you are going to see is consolidation taking advantage of the strong markets and pulling back from the weak markets," said Panamsat President and CEO Joe Wright during the opening panel session. Conny Kullman, CEO of Intelsat added that what may materialize within this sector is a moving of unneeded regional satellites in light regions to cover busier regions.
Commercial Launch Activity
From 1993 to 2003, the launch services market has indeed been fluctuating. But even in its turbulent decade-long journey, 2003 garnered only five less launches than 2002 with dual payloads as a hallmark the year. And even in a less-than-impressive launch year, this segment still fared stronger than the 10 launches it successfully executed in 1993.
International Launch Services (ILS) launched four commercial payloads closely followed by Sea Launch, which lofted its Zenit 3SL rocket three times in 2003. Arianespace launched four times, orbiting seven spacecraft that qualify under Via Satellite's matrix, plus one co-marketing launch with Starsem lofting Amos 2 into geostationary orbit.
But Ariane was also busy launching a different kind of business payload last year. In an effort to better serve its customers with a solid back-up launch plan, Arianespace spearheaded a business venture that now brings to the negotiation table launcher executives who have never shared this space.
Created in July 2003, the Launch Services Alliance combines the strengths of Arianespace, Boeing Launch Services and Mitsubishi Heavy Industries to provide customers with flexible, reliable and on-time delivery to orbit.
With regard to contracts, 2003 was a healthy year, bringing to the competition arena 16 commercial satellite launch contracts awarded to these providers. It is important to note, however, that three wild cards surfaced among the orders: the originally debuted Wildblue contract of 2000 is now slated for an Ariane launch after being renegotiated in 2003; DirecTV 7S, originally slated for Arianespace three years ago, was recently launched by Sea Launch; and Eutelsat's W3A spacecraft went from Arianespace to ILS.