The developing markets such as Africa and certain areas in the Asia-Pacific region present a unique opportunity for satellite companies to not only strengthen their revenues, but to help build up the economies of those regions. But building a successful business in those areas is going to require a little creativity to be successful.

One application that can have a tremendous impact in this region is broadband. While one may question how broadband can be an effective tool given the generally high illiteracy rates in developing regions, David Hershberg, president of Globecomm Systems Inc., said those in developing markets “have a much bigger need for the Internet than [those in developed and industrial markets] do.” Hershberg made his comments during a Global VSAT Forum 2005 panel discussion that took place at the SATELLITE 2005 conference and exhibition.

Hershberg noted that broadband Internet access is key to getting both teachers and students into the classroom, particularly since those in the developing worlds generally do not have access to televisions and libraries. And to help entrepreneurs build a broadband business in developing countries, Globecomm offers a program called “Impact ISP.” As part of this program, Globecomm supplies entrepreneurs with a complete turnkey hardware and software package. Globecomm then charges a nominal amount per subscriber that the entrepreneur is able to sign up for the first three months, allowing the start-up ISP to build a customer base and create some cash flow. Globecomm also offers similar programs to help build out direct-to-home television services.

“You have to do things like that in Africa” in order to build businesses in developing regions, Hershberg said. “With the exception of cellular, it is hard for those guys to get started.”

To that end, Globecomm offers similar programs for those looking to build cellular networks in remote areas. In this instance, all an entrepreneur would need is to purchase a base station and a media gateway, and then the entrepreneur can begin offering services. Globecomm will generate revenues from the international calls placed to help cover any equipment costs. And even though it might look risky on the surface, cellular technology is becoming more widespread in Africa. Hershberg noted that Nigeria experienced a growth of 3 million cellular subscribers in one year. So while Globecomm absorbs some of the upfront costs in helping to build networks in developing regions, the long-term risks are not as significant as they might appear on paper.