Andreas Georghiou, CEO, Spacenet Inc.

Via Satellite: What needs to be done to tap into these markets?

Georghiou: We have a job to do as an industry and that is to educate our customers. For instance, they might not be aware as much as we would like them to be that the cost of downtime may be a lot more than they think. They might not be thinking about it because they aren’t aware that there are alternatives where you don’t have to accept downtime. If you are a financial institution with 2,000 or 3,000 branches around the country or with 10,000 to 15,000 ATMs, why would you accept any downtime if you could help it?

The cost of installing these hybrid networks that provide business continuity versus the cost of being out of business for a period of time makes a very compelling case that you should have a backup network. All you have to do is calculate the capital expenditure cost and a very tiny, if any at all, monthly maintenance cost for the opportunity that you have almost nonstop availability of your network. I think this is a compelling case, but as an industry, we need to make this case to potential customers in more vivid colors.

Via Satellite: What is the potential impact of the Cisco agreement for Spacenet?

Georghiou: It is a growth opportunity because it enables us to provide services and equipment that make that business continuity concept possible. How big can that be? We have on the enterprise side an installed base of more than 70,000 customers, and our competitors have some as well. Even if for a technology refresh effort you were to replace all of these over the next two or three years with technology that is both more efficient on the utilization of space segment and have the business continuity aspect, it could be a very interesting proposition.

Via Satellite: What opportunities do you see in Internet protocol (IP)?

Georghiou: When it comes to IPTV, our view is that is a media play. It is an efficient way of delivering content to the end user. Whether there is enough of a value proposition or not to be successful remains to be seen.

On the broadband side, we play a significant role and we hope it will become even more significant, whether that is in the enterprise arena, the industrial verticals, the consumer market, or the small office/home office environment.

Via Satellite: What are you goals in the home office/small office arena?

Georghiou: I will not argue that the underlying economic market for broadband to home over satellite is an attractive one. We found out the hard way in this business — and others are finding it out — and some have predicted it correctly and decided to stay out of it.

We have found a niche. We have learned a lot of lessons and made certain investments in infrastructure, and as a result of that, we have found it interestingly profitable to stay in the business and continue pushing the envelope ever so quietly but consistently.

Via Satellite: What needs to be done to tap into these markets?

Via Satellite: What is the potential impact of the Cisco agreement for Spacenet?

Via Satellite: What opportunities do you see in Internet protocol (IP)?

Via Satellite: What are you goals in the home office/small office arena?

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