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Integrated Solutions, Market Consolidation Offer Growth Avenues

By | June 13, 2003

      Struggling with flat demand, intense competition and uncertainty due to industry consolidation, fixed satellite service (FSS) operators can expect growth and expansion beyond 2004 as the market restructures itself through alliances and mergers, diversifies into integrated solutions, and reduces operational expenses.

      New analysis from Frost & Sullivan, “Competitive Analysis of Commercial Fixed Service Satellite Operators Market (World),” reveals the total market capacity of these operators to be more than 7,500 transponder equivalents in 2002 with a worldwide fill rate of around 65 percent.

      “There are very few independent satellite operators and almost everybody is connected to at least one other operator, directly or through semi-formal alliances,” says Frost & Sullivan industry analyst Bharadwaj Ramesh. “And with giant telecommunications carriers relinquishing their roles as satellite operators over the last few years, satellite operators have a much freer hand in planning their futures and deciding what role they will take in the marketplace.”

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