Follows an article with relevance to our favorite satellite command & control system company
Monday November 17, 7:50 am Eastern Time
Company Press Release
SOURCE: Frost & Sullivan
Frost & Sullivan: Wireless Communications and Big LEOs
& MEOs; Are they Complimentary or Will Satellite
Technology Prevail
MOUNTAIN VIEW, Calif., Nov. 17 /PRNewswire/ -- Could this be the beginning for the end for wireless technologies such as PCS, cellular, SMR, EMSR, and paging? Will satellites take over cellular and other wireless services' existing customer base? Or will the technology simply provide enhanced cellular and PCS networks to improve coverage, systems compatibility and services?
According to new strategic research from Frost & Sullivan (www.frost.com), Big LEO and MEO Communications (Systems) Service & Equipment, the satellite communications industry has undergone a positive transformation in recent years. Trends including liberalization of international communications regulations, improved digital technologies, and declining hardware and service
prices have spurred strong commercial growth in an industry that traditionally has served only governments, the scientific community, the military, and very large corporations.
''The latest breakthrough is the widespread development of low earth orbiting (LEO) and medium earth orbiting (MEO) satellite networks, which promise seamless global communications anytime,
anywhere,'' says Telecommunications Industry Analyst Jose del Rosario. ''For the near term, satellite phones are being positioned as a backup system for cellular telephony. This ensures that an existing market can be readily tapped.''
Subscribers are expected to increase from 450,000, when the market begins to be realized in 1999, to over 7 million in 2004. Overall revenues are expected to grow at a decreasing positive rate as a
result of substantial price declines in handset and air time charges.
Substantial price declines in satellite services for both air time and handset prices are expected to be comparable to cellular costs by the next century. This development is expected to take market share
away from cellular, PCS, paging and other wireless technologies especially in countries with inadequate or congested terrestrial wireless networks.
''Satellites and other wireless technologies will likely co-exist for some time. However, satellite technology has an inherent advantage in its ability to provide wide area coverage for international,
regional and for large in-country communications for nations such as China, India, Indonesia, Brazil and Russia, to name a few,'' says Telecommunications Industry Analyst Megan Marek Combine this
with competitive pricing and an expectedly converging global protocol standard, and satellites may prove to be a preferred solution in the long-run.
Frost & Sullivan commissioned this research in a effort to provide a clearer understanding and perception of the overall market, including its participants, competitive forces, financial commitments,
and other industry concerns. Success of a satellite system is heavily dependent on project backers and partners, and especially the funding generated by these parties.
To date, Iridium is clearly in the lead of becoming the first global wireless system as it has successfully launched 39 of its 66 satellites in its planned LEO constellation. The Motorola-backed
venture may actually succeed in introducing its services sometime in 1998.
''None of the other Big LEO systems -- Odyssey, Ellipso, and Constellation -- have conducted significant financing moves or satellite launches, although the progress of Globalstar, Iridium, and
ICO will likely make investors more receptive to additional satellite finance activity,'' says del Rosario.
The research provides a strategic assessment of current market participants based on seven critical criteria. It is understood that the market is two years away from realization and substantial, critical changes and developments are expected before and during the market's life cycle.
The technologies reviewed include Big, LEO, MEO and broadband satellite systems, satellite transmission, satellite phone services, satellite air time charges, satellite hand-set prices, satellite
communications broadband satellites, mobile telephony, voice and data communications, GSM networks, global telephony service, global cellular service, and worldwide mobile communications
systems.
Market participants include: AirTouch Cellular, Alcatel Telspace, Alenia Spazio, Bell Atlantic Corporation [NYSE:BEL - news], Boeing Company, Com Dev International, Constellation Communications, Inc., Dacom Corporation, Daimler-Benz AG [NYSE:DAI - news], France
Telecom [NYSE:FTE - news], Inc., Globalstar Ltd., Harris Corporation [NYSE:HRS - news], Hughes Communications Inc., Iridium, Inc., Israel Aircraft Industries, Korea Mobile
Telecommunications Corp., Lockheed Martin Management & Data Systems, Loral Space & Communications, Ltd., McDonnell Douglas Aerospace, Mitsubishi Electric Corporation, Mobile
Communications Holdings, Inc., Motorola Space & Systems Technology Group, NEC Corporation [Nasdaq:NIPNY - news], Odyssey Telecommunications International, Inc., Orbcomm,
QUALCOMM Inc., Rantec Microwave and Electronics Inc., Raytheon Canada Ltd., Space Systems/Loral, SpaceVest, Sprint, STET sta Finanziaria telefonica PA, Teledesic Corporation ,
TRW Space & Electronics Group, and Vodafone Group PLC [NYSE:VOD - news]
Frost & Sullivan is an international marketing consulting company that monitors the telecommunications industry for market trends, market measurements, and strategies. This ongoing research is utilized to update a series of research publications such as #5418-60 U.S. Digital
Subscriber Line Technology (xDSL) Markets and to support industry participants with customized consulting needs.
Visit Frost & Sullivan's web site: frost.com
Report: 5636-60 Publication Date: October 1997 Price: $2450 |
