According to Simon Bull, a senior consultant at Comsys, 2010 was, “the year of the non-event” for the VSAT industry. As he opened up proceedings at Comsys’ VSAT event in London with this statement, I have to be honest — it was not the answer I had been expecting for my questions concerning the current state of the VSAT market.

Satellite events always seem notorious for giving upbeat forecasts about the state of the industry, and often with good reason. However, Comsys highlights that the fiber threat to satellite, in some markets, is very real, and while we all talk about the latest and greatest advances in satellite technology, the industry still has a fight on its hands to make sure it remains a very relevant part of the communications chain going forward.

Bull also issued Comsys attendees a stark warning about the perils of the VSAT industry not adapting to changing market conditions. While Bull spoke of many opportunities for the satellite sector, there was an undeniably sober tone to what he was saying. What made these comments at Comsys even more interesting was a conversation I had at IBC with Zakie Karam, general manager for Don Telecom, a major service provider in the Middle East. Karam noted that the satellite data communications market in the Middle East was shrinking as a result of the onset of fiber. In the future, Don Telecom sees more revenue opportunity in Africa than it did in the Middle East as far as data communications was concerned.

The key takeaway from this meeting was that while one market may be closing, another one is surely opening, but it was still a surprise to hear such downbeat assessment of the Middle East market. It shows that the industry has to be flexible and constantly on the move. In my view, the satellite sector seems much more fluid nowadays. Satellite broadcasting has, for the most part, not been impacted by online video, but satellite companies are recognizing the need to be savvy in adapting to new markets and seizing new opportunities.

It is obvious to say that the dynamic communications/broadcast landscape is experiencing rapid change, and almost everyone has been seeing more of an increased presence of blended technologies than ever before. This could be why there is such excitement generating for satellite operators to tap into cellular backhaul markets — wireless operators are realizing just how valuable satellite technology can be in helping to serve customers.

As telcos try to reach out to new customers and their needs become more complex, they will need satellite technologies even more. This collaboration between telcos and satellite will be interesting to observe during the next few months. I expect to see more and more deals in this direction, as the perception of telcos moves further away from the multi-headed monster that could kill satellite.