# Presentation: 498330

## State of The Satellite Industry

**S I A   M E M B E R   C O M P A N I E S**

_***State of The Satellite Industry***_

**David Cavossa, Executive Director, SIA**

## Satellite Industry Overview

**Satellite Industry Overview**

- _Launch Industry_
- Launch Services
- Vehicle Manufacturing
- Component and Subsystem Manufacturing

- _Satellite Manufacturing_
- Satellite Manufacturing
- Component and Subsystem Manufacturing

- Transponder Agreements
- Mobile Satellite Services
- Mobile Phone
- Mobile Data

- _Ground Equipment_
-  Mobile Terminals
-  Gateways
-  Control Stations
-  VSATs
-  DBS Dishes
-  Handheld Phones
-  DARS Equipment

- _Satellite Services_
- DBS/DARS
- Fixed Satellite Services
- Voice, Video, Data
- VSATs
- Remote Sensing

## World Satellite Industry Revenues

*World satellite industry revenues had average annual growth of 6.7% for the period 2000-2005*

**Notes:**
The world satellite industry revenues have grown every year since SIA/Futron began tracking the industry. Average annual growth during this time period is 13%.

In 2003, the world satellite industry growth slowed to about 6%, lower than the 10% growth experienced in 2002 and significantly lower than the high of almost 30% recorded in 1997. 

##  World Satellite Services Revenue

|  | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
| FSS | $9.1 | $9.0 | $8.8 | $9.5 | $9.3 | $9.8 | FSS=VSAT services, remote sensing, and transponder agreements |
| DBS | $18.3 | $22.0 | $25.5 | $28.8 | $35.8 | $41.3 | DBS/DARS=DTH TV, DARS, and Broadband |
| MSS | $1.5 | $1.3 | $1.3 | $1.6 | $1.8 | $1.7 | MSS=Mobile telephone and mobile data |
| Total | $28.9 | $32.3 | $35.6 | $39.8 | $46.9 | $52.8 |  |

**Notes:**
The Satellite Services sector has more than tripled in size from 1996 to 2003. 

Subscription and Retail Services had the greatest growth of all industry segments in 2003, with a 15% growth rate.
Direct-to-Home TV services continued to drive overall growth.
Revenues for mobile phone services and remote sensing received a boost in 2003 from increased government spending due to military activities.
Satellite Radio Services experienced over 400% revenue growth in 2003, although revenues still account for less than 1% of overall satellite service revenues. 

Transponder Leasing reversed a two-year decline and posted a 7% revenue gain in 2003, primarily due to increased government spending. 

## Fixed Satellite Services

**Fixed Satellite Services**

**Diverse market-base**
-  Media Distribution
-  Telecom Infrastructure
-  Enterprise Networks
-  Government Networks & Apps
**Geosynchronous Spacecraft**
-  ~22,000 miles in orbit
** ****C, Ku and Ka Frequencies**
** ****Terrestrial Infrastructures**
-  Teleports
-  TT&C Centers
-  Service Platforms
-  Fiber Interconnects
** ****~ 250 operational commercial GEO satellites in use today **
-  59 to be launched over next 3 years

## Mobile Satellite Industry 

**Function like terrestrial wireless system with ubiquitous reach **
**Use a mix of orbit types**
**Geosynchronous (GEO) **
**Non-geosynchronous (LEO and MEO) **
**System sizes range from (1) GEO satellite to (66) LEO Satellites**
**Use a mix of frequencies**
**Mostly L-Band / Some S-Band, UHF/VHF**
**Feeder links and some services use C, Ka, and Ku-Band**
**Applications**
**Aeronautical **
**Maritime **
**Land **

## Satellite Manufacturing Revenues

- N.B. – Satellite Manufacturing revenues are recorded in the year the satellite is delivered/launched, not when contract is awarded. World revenue includes the US revenue

## Launch Industry Revenues

**Launch Industry Revenues**

- N.B. - Launch Industry revenues are recorded in the year the launch occurs,
- not when contract is awarded.

**Notes:**
2002 Revenues were 25% Commercial 75% Govt.
2003 Revenues were 22% Commercial 78% Govt.

## Satellite Industry Trends

**After a few difficult years, the satellite industry has begun to rebound.**
**New technologies are being funded  **
**New applications are driving services demand **
**New markets are opening worldwide as regulations change**
**The key factors are:**
**Consumer demand – especially video**
**Government demand and investment in technology**
**Financial market interest and investment in both existing and new businesses**
**Consolidation and rationalization of capacity**
**These factors flow through the industry as new user solutions drive demand for more innovative satellites. **

## Satellite Industry Response to Katrina

## Satellite Is Part of the Solution

**First Responders and Public Safety need a non-terrestrial back-up communications infrastructure that is;**
**Independent of the Public Infrastructure**
**Pre-positioned**
**Included in First Responder Training Programs**
**The Department of Homeland Security is currently examining a range of emergency communication proposals, including proposals to ensure interoperability.  Satellite systems should be emphasized and included in the early planning of these initiatives.**
- The required capacity and equipment is available _today_ from commercial satellite operators to corporations, first responders, and consumers across the globe.

## Recommendations

**Satellites must be included in emergency response communications to ensure redundancy.**
**Satellite capacity and equipment must be pre-purchased and pre-positioned.**
**Satellite operators and personnel must be credentialed as first responders.**
**Satellite must be included in education and training programs for first responders.**

## Slide 13

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## Critical To National Security“Network Centric Warfare”

**Critical To National Security****“Network Centric Warfare”**

- Source: Defense Information Systems Agency (DISA)

## Projected DoD Wideband Needs

## What the DoD Wants

**Information sharing and analysis**
**Open dialogue on vulnerability, protection and operational issues**
**Terrestrial physical security**
**Site backup, protection posture and contingency plans**
**Personnel security**
**Background investigations and access controls**
**Cyber/Network security**
**Detect and respond to intrusions; guarantee secure connectivity**
**TT&C information assurance**
**Encrypted connectivity**
**Space situational awareness**
**System baseline, location, TT&C and mission status**
**RFI incident management**
**Timely detection, notification, characterization and response**

## What We Want:Long Term Relationship

** **

***Version 3.0***

## Operationally Responsive Space

- The goals of ORS to produce satellites that are less costly, at a faster rate, and in greater numbers; and provide niche capabilities, new technologies, and surge capacity; are not restricted to just small satellites and quick launch technologies.
- The DoD, industry, and Congress should embrace the operationally responsive space movement as an obvious next step toward transformation.
- Next step that includes, not only small satellites and cheap launch vehicles, but also encourages;
- Shared Payloads/Hosted Payloads
- Multiyear Commercial Transponder Leases
- Pre-Positioned Capacity and Transponder Portability
- Repositionable Spot Beams and/or Satellites

## US National Space PolicyReleased August 31, 2006

## National COMSATCOM Policy Needed

**To maintain and expand our capabilities, we recommend that the US Government develop a national commercial satellite communications policy that:**
**Relies to the maximum extent possible, on commercial satellite systems to meet the unclassified, non-sensitive communications needs of the US Government;**
**Maintains robust satellite technology development programs, such as the Transformational Communication Architecture and Operationally Responsive Space programs;**
**Takes maximum advantage of the flexibility of current procurements laws which allow multiyear procurement and the aggregation of government demand to build long-term stable relationships with the commercial industry;**
**Improves current satellite export control regime;**
**Maintains a strong national technological leadership through sponsorship of satellite education programs, career opportunities, and the education of key Government personnel;**
**Preserves and protects satellite spectrum from harmful interference****;**