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Satellite Executives Are Bullish On Broadband
LAS VEGAS–Satellite-delivered broadband services will gain a market niche despite fierce competition from regional telephone companies and the nation’s cable TV system operators, top satellite industry officials are predicting.
“Convergence in the media will continue even though the pace of convergence has slowed,” said Joan Byrnes, chairwoman of the Society of Satellite Professionals International (SSPI) and former chief operating officer of Loral Skynet [LOR]. “Three key drivers will continue to drive broadband deployment to consumers and businesses: increased investments in technology, a growing sense of urgency about the need for integrated broadband services throughout the world, and a developing market-driven competitive landscape for such services.”
Byrnes made her comments during a keynote address at the annual National Association of Broadcasters (NAB) 2003 show held here last week.
Satellite-delivered broadband services will be a reality for both the enterprise and consumer markets, forecasted the satellite industry executives who spoke at a panel session moderated by SATELLITE NEWS Contributing Editor David Bross.
The recent $100 million-plus investment in satellite broadband company WildBlue by the Reston, Va.-based National Rural Telecommunications Cooperative (NRTC), Intelsat and Liberty Media [NYSE: L] will be a key factor in bridging the “digital divide” between urban, suburban and rural markets in the United States, said Harry Thibedeau, the NRTC’s manager of satellite industry relations.
Susan Brazer, president of New Jersey-based LionShare Media International, said there is pent-up demand for seamless broadband connectivity not only by consumers but by content originators and providers.
Paul Bush, vice president of corporate development at Telesat Canada, confirmed that his company is moving forward with Ku- and Ka-band broadband services.
From a U.S. perspective, SES Americom’s Americom2Home project, which aims to provide a direct-to-home satellite platform from the 105.5 degree W and 105 degree W orbital slots, recently received a shot in the arm from EchoStar Communications [Nasdaq: DISH]. EchoStar agreed to lease the capacity of a satellite that SES plans to launch to provide services at the 105-degree W slot.
Sergy Mummert, vice president of SES Americom, told attendees his company is fully committed to the project and that the EchoStar deal was the first of many announcements from companies wishing to use SES’ Americom2Home birds and frequencies for services ranging from satellite-based Internet bouquets to local-into-local services.
From a European perspective, Christian Pinon, the new CEO of Globecast, and Eric Le Proux de la Riviere, CEO of Paris-based Vista Advisers, told attendees that the broadband satellite market remains flat across the European continent. Satellite broadband providers that soldier ahead in this environment must confront consumer expectations that any satellite offering should be bundled with a consumer video package that provides “always on” services.
The broadband satellite discussion and other NAB satellite communications sessions were co-produced by SSPI and the World Teleport Association (WTA). — David Bross
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