Don’t be surprised to see transactions similar to the Hughes/Boeing merger occur in the coming year. With many satellite companies struggling to maintain the bottom line, they will need strategically to choose what business to pursue.

"Many satellite companies got very big, very fast," said Anita Antenucci, managing director at Quarterdeck Investment Partners Inc. at the monthly meeting of the Washington Space Business Roundtable. "The nerve structure rewires itself very fast."

Focusing on core markets also is going to require a change in strategic planning for satellite companies, especially when time to market is factored into the overall business plan.

Antenucci noted that was one of the problems that faced Iridium LLC [IRIDF] and ICO Global Communications [ICOGF]. The business plans they were using are more than 10 years old. In that time, wireless became a viable competitor and the satellite voice carriers ended up with an outdated business plan.

And high-profile losses like that have caused financiers to re-evaluate satellite companies.

Roger Widing, managing director of Reston, Va.-based venture capitalist firm SpaceVest noted that many satellite projects are dependent on vendor financing, which puts a lot of pressure on the balance sheet.

However, Widing was not quick to dismiss satellite companies from financing options.

One of the key ingredients in the future for satellite communications is the Internet. Wireless, companies, he added, also are eyeing this booming market. And wireline-based companies, of course, are already there.

Riyad Said, vice president of communications research at Friedman, Billings, Ramsey & Co. Inc., agreed, noting there are lots of opportunities for Internet companies to become more active in the satellite business.