Northern Sky Research said in a report released March 15 that the total revenue for the satellite industry derived from government and military users is expected to grow to more than $1.4 billion by 2010 from an estimated $580.2 million in 2003, yielding about $7.8 billion throughout an eight-year period. The report, “Government and Military Demand on Commercial Satellites, Second Edition,” said the satellite communications revenue growth continues to be driven largely by U.S. military demand as the Pentagon’s bandwidth needs have increased substantially and will not be satisfied internally before 2020. Other drivers include the continued presence in the Middle East and other homeland security initiatives. These drivers will sustain revenues during the forecast period, Northern Sky reported.

“Although the War in Iraq, which provided a large surge in bandwidth demand has been completed, the U.S. decision to support democracy in the region, in addition to continuing the fight against terrorism, will ensure the continued generation of increasing revenue growth,” Jose del Rosario, senior analyst of Northern Sky Research and author of the report said in a prepared statement.