Net boom to lift satellite use
Friday, June 25, 1999
INTERNET
ASSOCIATED PRESS in Singapore
Satellite usage in the Asia-Pacific region will experience steady growth along with a rise in Internet use, electronic commerce and mobile communications, according to industry executives.
"I firmly believe that Asian economic and industrial growth will be stimulated by satellite-based Internet access, VSATs, e-commerce and direct-to-home TV networks," said Michael Houterman, president of Hughes Space and Communications International of the US.
VSATs, or very small aperture satellite terminals, are small earth stations used to handle digital transmission of data. These are considered useful especially in non-wired and congested areas in Asia, he said.
Demand for these services "in turn will stimulate new orders for new national and regional satellite capacity", Mr Houterman told delegates to the Asia Pacific Satellite Communications Summit.
He cited industry figures showing Asia-Pacific economies would invest US$9.5 billion in 73 new communication satellites between this year and 2008.
Thirteen launches valued at $1.7 billion were scheduled for this year in the region, with most of the new capacity used for direct-to-home TV networks and Internet Protocol (IP) applications, Mr Houterman said.
"Importantly, massive deregulation in the region is facilitating both IP and VSAT communications. Ninety per cent of the countries in Asia Pacific have opened up their Internet access to competing carriers," he said.
Among the trends pointing to increased satellite usage were the "much larger role" played by regional satellites over purely domestic satellites.
Mr Houterman cited as an example an Intelsat satellite that enabled China Telecom to link the mainland to the Internet backbone in the US.
Asian telecom firms were co-operating to expand their capacities. This included firms such as Singapore Telecommunications and Taiwan's Chunghwa Telecom, which launched a satellite last August.
Western companies were also moving into the Asia-Pacific commercial communication satellite market to help the region improve its telecom services, Mr Houterman said.
The Loral Global Alliance, a network of some of the world's leading satellite operators in the US, Europe and South America, is engaged in talks with telecom and information technology firms in Asia to boost its presence.
The mainland is acknowledged as the biggest market for satellite-based communication services, but its own players are also gearing for the boom.
With the mainland waiting to take its place in the World Trade Organisation, "in the telecommunications circle, especially as a satellite operator, we are preparing for big challenges," said Hao Weimin, president of China Orient Telecom Satellite.
Copyright (c)1999. South China Morning Post Publishers Ltd. All Rights Reserved.
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