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Technology Stocks : Broadband Internet via Satellite -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (110)	2/28/2001 9:15:30 PM
From: Ilaine	Read Replies (1) \| Respond to of 163

I am confident that satellite telephony will make money once the companies adopt a sensible business model. Here is something from the CE Unterberg, Towbin website. They have a very good satellite analyst section, their HotBird is superb. >>Satellite Infrastructure (FSS & VSATs) Feb , 5 , 2001 , 12:00 : Introduction • Throughout the world, universal service obligations (USO) supported by Government could motivate telcos to finally provide comparable service to neglected rural areas. Given their improving affordability and ease of deployment, satellites will serve as valuable tools for telcos to meet such obligations. With government support, normally high cost satellite services can be made affordable to more consumers, further accelerating the rate of satellite service adoption. • We see encouraging developments throughout the world, but are keenly focused on Australia and India in the near-term and markets like China further out. • In Australia, a USO concession could be awarded any time, possibly triggering a VSAT order for 40,000 terminals. Clearly, either Gilat or HNS could be large beneficiaries of such an award, which would be the largest viable enterprise VSAT order on record. For perspective, this would equate to more than half of the total industry VSAT deliveries in 2000. Despite the apparent large market opportunity before Hughes and Gilat, they both seem more keenly focused on their evolving consumer businesses, given that is where investors seem most focused. • Satellite capacity lessors and VSAT/broadband equipment providers are the most logical beneficiaries. Given the limited bandwidth of a satellite, it takes only a small number of satellite broadband users to make a meaningful difference in regional FSS demand. For instance, we estimate that the entire U.S. marketplace may have existing unused FSS capacity to support just 700,000 to 1.5 million satellite broadband users. • We believe that these types of government-supported last-mile initiatives are essential to the proliferation of satellite services in many markets.<< unterberg.com