PARIS—The number of commercial transponders leased for military satellite communications services will dip slightly beginning in the 2006-2007 timeframe as new U.S. military systems become operational. But the demand will rebound before the end of the decade and reach new heights by 2014, Rachael Villain, executive vice president of Euroconsult, said Sept. 6 here at a press conference at the 9th World Summit for Satellite Financing.

The use of commercial transponders for providing military communications has grown steadily since 2000, and is expected to peak at nearly 180 36-megahertz equivalent transponders in 2006. That number will dip slightly as the next-generation U.S. military systems such as the Advanced Extremely High Frequency spacecraft come online, falling throughout two years but never dipping below 150 transponders, according to the Euroconsult’s “World Satellite Communications and Broadcasting Market Survey, Market Forecast through 2014.”

The demand should experience another period of strong growth beginning near the end of the decade, reaching nearly 250 transponders by 2014, according to the survey.

While current demand is driven by U.S. military activity in the Middle East, future geographical distribution of demand will depend on where future military operations take place, Villain said.