HONOLULU–Asia represents one of the world’s largest markets for satellite products and services, with 67 commercial satellites transmitting to a third of the world’s population.

Asian satellite operators “may be faring better than their foreign counterparts” in terms of stock performance, observed Phillip Spector, an attorney with the Paul, Weiss, Rifkind, Wharton & Garrison firm of Washington, D.C. However, persistent weakness in the regional and global economies and excess satellite capacity,” is coupled with “tepid demand for new products and services,” Spector added. Other factors contributing to market stagnation include “regulatory obstacles to growth” and competitive pressures from fiber optic cable,” he told a panel here at the Pacific Telecommunications Conference.

In the long term, demand for satellite services will rebound, Spector predicted. “Industry will benefit from restructuring as firms are likely to continue merging and consolidating to capture economies of scale and facilitate future financing needs.” Keys to industry success, he concluded, are “expansion and integration of existing services, exploitation of markets for DTH and broadband to stimulate demand for new satellites, and regulatory reform.”

–Scott Chase