VIA SATELLITE: Indeed the growth of your network services business topped 13 percent in the first quarter — way ahead of the single digit growth rates typically delivered by FSS. Are you surprised by the performance of this business?
McGlade: Not at all — we are well-positioned in regions that are undergoing rapid economic development, and as other companies build out infrastructure in these regions, Intelsat has partnered with them to grow their businesses. Wireless expansion services, private corporate networks, Internet trunking services and broadband services are vital elements of the communications landscape, and Intelsat has been able to parlay its heritage relationships as markets deregulate and new entrants bring new services to market. Overall, we are trying to push the technology, make it more cost effective, simpler and less labor intensive. The expansion of our terrestrial network supports this effort, and makes satellite a more efficient and accessible technology. We saw this need and our response effectively expanded the market, and that is what you are seeing in our results.
VIA SATELLITE: How do you see the broadband market evolving?
McGlade: When I look at broadband, I keep seeing so much potential, and it has not been fully realized. The frustration still exists that the industry should be further along than we are, but we should also be proud of what we have accomplished. The industry has had success with WildBlue and Hughes. Even so, I believe that there is more to be done in the broadband market place. You have to look at it country-by-country. Looking at mobile broadband is key as well. The big questions are: ‘will we have as much success through satellite as is possible through a terrestrial network in providing robust broadband?’ I think so. ‘How will these technologies develop?’ ‘Will it take longer and be more expensive?’
VIA SATELLITE: Which other applications do you see growing?
McGlade: In regard to applications, we continue to see HD (high-definition) proliferating. Intelsat carries nearly 80 channels of HD globally now, and I still see continued growth coming from HD, partly due to the success of this summer’s European soccer championship and the Olympics. I believe the DTH (direct-to-home) platforms will increase globally and proliferation of ethnic channels around the world will continue as well. And then you have the "big unknowns" like IPTV. That market is still growing. When you look at the development of the emerging economies, there is a strong need for communication bandwidth and satellite is a good place to be.
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