[Satellite News 03-10-11] Noorsat, one of the MENA region’s first fully privately owned satellite service providers, could look to launch its own satellite in the near future, Noorsat CEO Omar Shoter told Satellite News.
    “We are always looking to partner with satellite operators, but we are also investigating the possibility of launching our own satellite. I think it will be at least 12 months before we announce something, but it is definitely something we are considering over the next year, to have our own independent satellite,” said Shoter.
    Noorsat’s business model involves leasing capacity on a wholesale basis and then sub-leasing that capacity to customers. Shoter said a new satellite would help the operator cement its strong position in the Arab world and allow the company to focus on expansion, as it has recently been serving countries in Southern Europe and the area up to Iran and Afghanistan.
    “We have seen good growth in both DTH television broadcasting services as well as non-TV services such as GSM connectivity, Internet broadband as well as other telecom services. We understand our area well enough, so we are not looking to go to markets that we don’t really have the right experience in and the tools needed for success. We are seeing regulations open up across the region, which is bringing more opportunities for broadcasters, media players as well as private telecom operators to make their mark in the market. This is expanding the demand and opening up opportunities for satellite players.”
   However, with a number of new satellites coming on board over the Middle East and North Africa, there is the possibility of an over-supply situation developing, according to Shoter. “I think the demand has been increasing, but we could be reaching the end of that growth cycle. I am not sure exactly when that growth cycle will stop. There will be a time soon where there might be an abundance of supply in terms of capacity, especially in Ka-band. A lot of satellite operators are coming up with new Ka-band satellites, but these satellites are really limited to broadband services. Unless you are well positioned in the region with the right tools to market satellite-based Internet, we might see an over-supply of capacity in terms of Ka-band,” he said.
   Ka-band satellite broadband to serve the rural areas in the Middle East remains a key area of interest for Noorsat. However, Shotel said the company will wait to see what impact other players will make with their new Ka-band offerings before the company considers launching its own satellite. “There is competition in the cities with fiber-optic [cable] and wireless options, so it is not clear how much of an impact Ka-band will have here. You also have the coming 4G with fast broadband service that is quick to deploy with high capacity at competitive pricing. It is harder for satellites to compete with terrestrial networks. It will do well in remote areas, but it remains to be seen how big the opportunity is here.”
   Shoter is confident that the growth Noorsat enjoyed in 2010 will give the operator momentum to grow its business even further in 2011, which would determine the need for a new satellite. “We think this is a good time for satellite communication services in the Arab World. We are not sure when the cycle will come around again. We have been witnessing consistent yearly growth in both revenues and profits.”