Since the posts are few and far between these days, I thought I should do a little update cheerleading. This company continues to increase its future value without a corresponding increase in stock value. Here is what we know today.
Skynet--The launches of Telstar 6 & 7 have been moved up into 1998, with 8 & 9 to follow in 1999. Satmex will be managed by Skynet. Company estimates of transponder lease rates show an average of $1.7 million/transponder/year for 1997, increasing to $2 million/transponder/year in 2000. These are EXTREMELY conservative numbers. "Value-added services" provided by Skynet may potentially double, even triple these rates, providing huge upside surprise potential. This is done by splitting transponders and using them more efficiently by charging companies only for their use-time. They also have a number of new services that will increase rates and increase customer satisfaction.
Orion--Revenues per transponder for this company can approach $10 million per year, but with a lower margin. The VSAT business allows for these greater revenues, but requires greater equipment expenditures. Orion will also provide rural telephony services via some of their Ku-band transponders(see my post under Globalstar thread). Orion can also provide corporations with a "virtual" network to link widely-dispersed offices at a lower cost and with greater reliability than landlines.
Cyberstar--I can only say--watch out! This is a division that gets little attention, but has huge potential. Starting soon, they will provide service using Ku-band transponders via Telstar. The applications are enormous. They can use their technology to "push" content to the desktop at speeds of 2Mb/sec. This can be software updates, training sessions, files, videos, etc. Corporations can cheaply and efficiently update all offices, no matter where they are, with a simple Cyberstar "push". I now have a satellite quote system that updates its software automatically over the satellite to my computer. Very slick. Consumers could subscribe to a software service where updates automatically are delivered to them via sat. An internet subscriber would use the service so that area of interest to them will be sitting on their desktop when they get home at night, all freshly updated. In 1999, uplink ability will be available also so one can bypass the ISP altogether if needed. Consumers will have this 2Mb/sec access speed available soon with dish/card/software at $300 and $30/month subscription.
Globalstar--see my post under Globalstar thread for update.
SS/L--Huge backlog, huge barriers to entry, increasing demand---not much to add here. SS/L is certainly providing an excellent inroad to "deals" for Loral. The CD Radio deal, for example, came from SS/L's manufacturing of satellite for the company. Loral obtained 14 Ku-band transponders from Mabuhay through another deal. Look for another deal to occur at some point in order for Loral to provide DTH service to India through the recently announced deal with Modi. They will need sat capacity to do that.
There is much more, but my fingers are tired. Perhaps this will get the posting started again. |
