[Satellite Today Web Exclusive – 6-9-08] While well established as one of the leading operators in Asia, AsiaSat hopes to develop its business in the region still further following the scheduled launch of AsiaSat 5 in 2009.
AsiaSat CEO Peter Jackson talks about the dynamics for satellite in the region and why he expects AsiaSat to perform strongly in the region over the next few years.
Via Satellite: What are the demands for satellite capacity in Asia? What do you see as the major growth markets for AsiaSat going forward?
Jackson: Amidst the region’s improved economies, we see gradual recovery of the transponder market. Demand is particularly strong from the broadcast sector as a result of the increased use of satellite to distribute content to the growing number of pay-TV platforms in Asia. These new platforms, whether they are DTH, cable, IPTV or mobile, all need additional content and better viewing quality by using digital or HDTV to differentiate themselves from competing players.
We also see the growing demand for capacity for occasional services, stimulated by international sporting activities. Our occasional capacity booked last year increased by more than 35 percent and we see this trend continuing. Longer term, we see increased take up of HDTV and this will drive demand for capacity. In addition, governments are favouring the introduction of competition in all sectors of society and this includes the provision of television services so we see an increasing number of distribution platforms that, as we explained earlier, all require new content to compete.
Via Satellite: Is a glut in capacity still putting pressure on prices in the region?
Jackson: Despite the revived demand, most Asian markets remain extremely competitive. Satellite operators offering lower quality capacity in terms of power, coverage or neighborhood are encountering more severe pricing pressure. But for AsiaSat, we see our C-band capacity pricing improving because supply of quality capacity for regional TV distribution is scarce. Ku-band pricing varies from market to market, and we see stronger pricing pressure in places where a monopoly exists. But lease rates in certain markets have firmed up, particularly in countries where domestic supply cannot fulfill demand.
Via Satellite: What are your plans to bring new, high-powered next generation satellites to the region?
Jackson: The main capital expenditure in the short term is for building AsiaSat 5, which will replace AsiaSat 2 at the orbital location of 100.5 degrees East in 2009. This new satellite is designed to offer a more powerful C-band pan-Asian coverage than that of AsiaSat 2. There will also be an additional Ku-band South Asia beam and an in-orbit steerable beam, aiming to offer the capacity to markets with stronger demands for DTH and broadband services. We are also investing in expanding our facilities at Tai Po Earth Station to enable us to offer more diverse and comprehensive services for our customers while we are also looking at suitable acquisition opportunities in the region.
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