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Mobile Satellite Services Industry Readies for Change Amidst Turbulent Times

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Note -- this news article is more than a year old.


The global Mobile Satellite Services (MSS) market is expected to grow from 1.8 million in service units in 2008 to more than 15.5 million units and $18.6 billion in revenue by the end of 2018 says a report from NSR.

"With just fewer than 2 million in-service units in 2009, most of the MSS players are holding their own in the difficult economic environment," stated Claude Rousseau, Senior Analyst for NSR and author of the report. "Some parts of the market have taken a hit, but at much less strength than what was expected. With the MSS industry entering a high-risk phase that will either see it get a facelift or go through an extreme makeover, NSR is more cautious than ever about the short- to mid-term prospects."

Indeed, the industry may look very different in the next twelve to eighteen months as some consolidation, consumer-play products, public offerings and bankruptcies or shutdowns could change its composition. The near term will tell if huge looming debt repayments will be handled easily and place the MSS market on more solid foundations and expectations.

MSS operators as a whole experienced growth last year of almost 8%, even while some players were not so healthy. What looks inevitable is that the MSS market is on track to offer more bandwidth than ever, which will stretch most operators who need new targets to surmount the economic uncertainty. The economic jitters of the past twelve months are influencing some MSS operators who are setting their revenue targets to single-digits in the near-term as they take into account delayed or lower communications budgets in key verticals.

However, one market that is seemingly unfazed is data. With one-way or two-way data communications proving to be the killer application of the MSS market, data is helping operators garner more revenues as the fastest growth area of the MSS business today and providing value across all platforms.

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Tags: mobile satellite services  satellite  bandwidth  mss  global mobile