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Via Satellite: How do you view the opportunities for Ka-band in the region? Will any Asian operators look to have a dedicated Ka-band satellite?Choi: ISRO [The Indian Space Research Organisation], Korea Telecom and JSAT are all either operating or planning to fly Ka-band payloads in the near future. The newly formed operator Yahsat will deploy Ka-band services on their new satellite in the Middle East and Africa. Asian operators that are planning to serve Southeast Asia are discouraged from offering Ka-band services in that region due to the high levels of rain-fade.
Via Satellite: Have the dynamics for fixed satellite services (FSS) in the region changed?Choi: The dynamics of the FSS industry has changed quite substantially over the past several years, brought on by the rapid pace of consolidation amongst the larger global operators. Although there is less commercial competition, we are seeing more trade barriers being imposed on our business in Asia.
One key concern that I have for the region is the signs of protectionism that is appearing in key domestic markets. Without naming names, a significant number of domestic markets that have either launched or are launching new or replacement satellites are putting in either regulatory or commercial pressure to their domestic customers to buy local. This doesn’t bode well for global or regional satellite operators for every country to have a satellite network and put in protectionist barriers against foreign satellite operators. Fortunately some countries with domestic satellite operators such as Malaysia have maintained an open skies policy. We hope that this trend continues for the health of the satellite industry.
Via Satellite: Do you see consolidation among FSS operators in the region?Choi: As the investment in satellites and launch vehicles continue to sky-rocket, we will see more partnerships developing to coordinate investment costs between satellite operators — as Intelsat has done with JSAT for their Horizon’s investments.
ABS is always interested in partnering with other regional operators to explore mutually attractive investment opportunities. Although people discuss consolidation amongst Asian FSS operators, due to the political complexities of satellite investments, I don’t believe we will be witnessing a flurry of activities any time soon.
Via Satellite: How do you assess the prospects for direct-to-home (DTH) services throughout the region?Choi: Coming from the United States and from Hughes Communications International, (the company that created the biggest DTH operator in the world, DirecTV), I have some insights about the factors which can yield strong and successful DTH operations. Without mentioning all of them here, I believe that some of the essential ingredients for successful DTH operations include a large domestic population base with upper class income segment with sufficient disposable income as well as a dynamic domestic television and media market.
India embodies these traits. Although some of these countries have had limited success (mostly failures) in DTH operations, I believe countries such as the Philippines, Indonesia, Thailand and Pakistan also have the basics for future DTH success. Let’s hope for the satellite industry that the local companies with sufficient investment capabilities are awarded licenses to see those plans come to fruition.
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