[Satellite Today Web Exclusive – 6-13-08] The Cable & Satellite Broadcasting Association of Asia (CASBAA) plays a key role in promoting the rights of satellite and cable companies throughout Asia.
As it helps satellite players in all markets, CASBAA is able to offer a unique perspective on how markets are going to develop in the region. Simon Twiston Davies, the organization’s CEO, talks about the prospects for satellite players in Asia and the potential for growth in a number of different markets.
Via Satellite: How do you view the opportunities for fixed satellite services (FSS) and direct-to-home (DTH) operators in the region?
Twiston Davies: The demand for communications products in Asia continues to grow in line with economic development. FSS and DTH in particular are a little bit ahead of economic growth, trending upwards with media spend — especially since at least 50 percent of all satellite services are dedicated to video. The demand curve continues to rise across the region. The only caveat I hold is that we work in a patchily restrictive market in terms of regulation.
CASBAA operates across 15 markets and each has a different set of dynamics compared. India has huge demand for satellite services. Even so, we believe the demand is not being adequately met because, in [the Indian Space Research Organisation], there is a single gatekeeper holding back the additional deployment of capacity over India. China has its own set of dynamics with a single operator, and again the market for fixed satellite services is quite restricted with international players only able to pick up a relatively small percentage of the market.
The opportunities, for both FSS and DTH, are enormous. The Asia Pacific’s appetite for general communications is increasing. Of course, there is a challenge from fiber networks, but the fact is that we live in multiple markets which are almost perfect for satellite communications. With 13,000 islands in Indonesia and 7,000 in the Philippines, they are both ideal for satellite communications and growth in both of those economies should lead to more opportunities. India, meanwhile, has a vast piece of geography, which is only patchily connected by fiber and fixed ground systems. So India is ideal for DTH, VSAT, satellite backhaul of video and for general communication products.
Via Satellite: Have the dynamics for FSS services changed in the region?
Twiston Davies: I think the dynamics have changed somewhat with major investment groups clearly seeing a return on new investments, which is more attractive than it was three to four years ago. We know that those operators are commissioning new capacity. They clearly see a market.
Several Asian markets are perfect in terms of the way they are geographically dispersed with very lively economic growth. It may be that the new capacity soaks up that economic growth. If you have got regional economic growth of 8 percent to 9 percent and you have an underdeployed communications infrastructure, there is great opportunity.
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