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Maritime and Aeronautical Broadband Will Drive Growth in Mobile Satellite Services, New Report Claims

Posted on: Tuesday, 1 April 2008, 09:00 CDT

MENLO PARK, Calif., April 1, 2008 /PRNewswire/ -- Telecom, Media and Finance Associates, Inc. (TMF Associates), the specialist Mobile Satellite Services (MSS) consulting firm, today released its latest research report on developments in the mobile satellite market.

The report analyzes the aeronautical communications market and projects that service revenues will grow from $120M in 2007 to $640M in 2013, driven by continued strength in the business jet market and steady growth in usage of new in-flight passenger communication technologies. The report also examines the opportunity for maritime broadband providers, predicting a near doubling of revenues for MSS and VSAT services from $530M in 2007 to $980M in 2013. In addition, the report discusses the slowdown in the MSS handheld market and the difficulties experienced by mobile TV providers, as well as the outcome of the recent 700MHz spectrum auction.

Tim Farrar, author of the research, commented, "It is becoming increasingly clear that MSS operators must look to maritime and aeronautical broadband markets to drive their future growth. The handheld MSS market has continued to shrink in 2007 and with recent delays in the launch of new service offerings, any recovery may not come until 2009 at best. While new VSAT offerings will compete strongly for market share in both the maritime and aeronautical sectors, we forecast continued growth for L-band services despite the difficult economic climate.

"However, we do not expect services supporting in-flight mobile phone use for airline passengers to achieve the success that some providers project. We believe that airlines must view connectivity primarily as a service differentiator to enhance passengers' travel experience, and those airlines expecting to make a profit from such services will be disappointed. This is particularly true in Europe, where recent reductions in mobile roaming charges and the relatively short flights, combined with the potential for a passenger backlash, will limit usage.

"We also advise MSS operators to focus on developing their core satellite business and on countering the increasing challenges from VSAT. Recent disappointments in the mobile TV market in Korea make us increasingly cautious about the prospects for new services where the satellite component serves only to secure the rights to spectrum, rather than providing a key element of the end user experience, and may have serious repercussions for the upcoming 2GHz MSS spectrum allocation process in Europe."

The report forms part of TMF Associates' information service on Mobile Satellite Services. Subscribers include many leading satellite operators, equipment manufacturers, distributors and investors in the sector. More details are available at http://www.tmfassociates.com/reports.

TMF Associates, headquartered in Menlo Park, California, is a leading consulting and research firm providing business and technical analysis in satellite, wireless and broadband telecommunications. The firm specializes in Mobile Satellite Services, including Ancillary Terrestrial Component (ATC) technology, and works with operators, investors and equipment manufacturers to analyze complex market issues. For additional information, please visit http://www.tmfassociates.com/.

CONTACT: Tim Farrar, President, Telecom, Media and Finance Associates, Inc., 650-839-0376 or tim.farrar@tmfassociates.com

This release was issued through eReleases(TM). For more information, visit http://www.ereleases.com.

Telecom, Media and Finance Associates, Inc.

CONTACT: Tim Farrar, President, Telecom, Media and Finance Associates,Inc., +1-650-839-0376, tim.farrar@tmfassociates.com

Web site: http://www.tmfassociates.com/

Source: PRNewswire

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