[Satellite TODAY 03-26-13] A commercial partnership between an FSS and MSS operator could happen “sooner rather than later” as the talk of convergence between the two sectors gathers pace. This is the opinion of Maury Mechanick, a telecoms/satellite lawyer at White & Case and one of the top legal experts in the satellite industry. 

 

    “We clearly are on a path of greater convergence between FSS and MSS service offerings, as the services offered are increasingly competitive with one another. Indeed, the only true differentiator between FSS and MSS service providers may be the particular frequency bands that each set of service providers utilizes,” Mechanick told SatelliteTODAY.com. “Moreover, particularly with Inmarsat’s movement into Ka-band via its Global Xpress offering, even that distinction is fading away. Without making a particular prediction, there is certainly no reason why an opportunistic commercial partnership between an FSS operator and an MSS could not occur sooner rather than later.”

 

    With SATELLITE 2013 just finished, a number of talking points have emerged such as the state of the launch services market, and the future for High Throughput Satellites (HTS). The launch services market, in particular, is in an intriguing position right now. “Sea Launch is definitely in a precarious situation. While it did have a few successful launches after coming out of bankruptcy, the recent launch failure is big and, if nothing else, further raises tough questions about quality control on Russian-built launchers,” Mechanick said. “Should Sea Launch not be able to bounce back, this would represent a major concern for the satellite industry about supply and competition among launch services providers. SpaceX’s emergence of a credible alternative notwithstanding, the number of suppliers remains small, and it continues to be unlikely that U.S. manufactured satellites – or non-U.S. manufactured satellites with U.S. components – will be allowed to use Long March for the foreseeable future.”

 

    Like many speakers at SATELLITE 2013, Mechanick is confident that the future looks good for HTS. “The demand for ubiquitous broadband connectivity will simply continue to explode, and there is no way that can be achieved without significant involvement of the satellite industry, with HTS, particularly at Ka-band, leading the way,” he said.

 

    One of the other trends at SATELLITE 2013 was a vision to see the glass as half full rather than half empty. Mechanick also has optimism that the industry is in good shape, both in terms of regional opportunities, as well as applications. “To be sure, Latin America, Asia and Africa all continue to be attractive growth markets for satellites, as each of those markets is underserved in one respect or another. I would not, however, limit growth prospects solely to those geographic markets, as a combination of device-driven demand for additional broadband capabilities and for ubiquity of coverage can fuel additional satellite growth in all geographic markets,” he added.