Can Commercial Satellite Weather Economic Storm?

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Can Commercial Satellite Weather Economic Storm?

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Despite the troubling economic climate that's challenging businesses worldwide, the commercial satellite transponder leasing market could emerge from these challenging times relatively unscathed, stated research released Wednesday by firm NSR.

Like all businesses, commercial satellite operators will encounter some headaches during the current economic crisis. NSR said the current climate could challenge the satellite business during the next 12 to 18 months.

However, "It will be more on the order of a few quarters of somewhat slower demand growth compared to the last few years, rather than outright transponder demand contraction," said Patrick French, NSR senior analyst and author of the report.

Also, the launch of new satellites in the 2009-2010 time period will strengthen existing orbital locations and open new slots. And that action could come just in time to address re-emerging demand in many sectors as economic conditions improve, NSR said.

In fact, improving economic conditions could lead to a sharp boost in demand in the 2010 to 2011 period, the firm suggested.

NSR estimated that the commercial satellite industry generated $8.33 billion in 2007 from commercial C-Band and Ku-Band capacity leasing. That could grow to $12.9 billion in 2017, the firm said.
 
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